Back on December 17 2008 I picked a handful of stocks that I thought were good ones to pick up while they were cheap. Most of them I already own but some I don't.
It has been the most read article on the Share Investor Blog and like every successful smash hit it deserves a sequel.
I have added 3 additions to the picks at the end of 2008. They are at the end of this post.
Over 3 months later lets see how they have done. The chart below compares my four original picks; Fisher & Paykel Healthcare, Mainfreight Ltd, Pumpkin Patch and Ryman Healthcare against the NZX 50 gross index.
The NZX 50 gross is down around 2% since December 17 2008.
Fisher & Paykel HealthcareMy first pick was Fisher & Paykel Healthcare [
FPH.NZ] and I picked it for its very good long term outlook and its resilience in times of economic downturns.
How has it done since then ?
Well against the NZX 50 about 20% better and against itself share price wise around 4% better than December 17 2008, to finish at $3.16 today.
It has been as high as 15% up from December 17 levels on March 11 2009 and the company is due a good result in May thanks to higher sales and a stronger US dollar.
Not a bad pick by me and the share price will pick up more this year.
Related LinksFisher & Paykel Healthcare financial dataFisher & Paykel @ Share Investor
Fisher & Paykel set for a healthy 2009Big Fisher & Paykel share trades a curious taleWhy did you buy that stock? [Fisher & Paykel Healthcare]Drinking and TradingShare Investor's 2008 stock picksFisher & Paykel: A tale of two companiesFPH downgrade masks good performance
Ryman HealthcareRyman Healthcare was my second pick and one again its long-term prospects was the main reason I included it in my 2009 picks and in my long-term portfolio.
How has it done in the last 3 months?
Down 4% more compared to the NZX 50 and down 3% as of publish date of this column compared with its share price on December 17 2008.
Pretty good result so far.
I also picked Metlifecare [
MET.NZ]
for my watchlist. A competitor of Ryman Healthcare it has done badly since December 2008.
Related LinksRyman Healthcare financial data Ryman Healthcare @ Share InvestorWhy did you buy that Stock? Ryman HealthcareTime for retirement?
Mainfreight LtdMainfreight Ltd [
MFT.NZ] is one of the better run companies on the NZX but the share price hasn't done well since we last met it in December.
It is down 8% compared to the NZX 50's 3% since December 17 2008, even though its
recent profit was up slightly.
Related LinksMainfreight Ltd financial data Mainfreight @ Share InvestorLong vs Short: Mainfreight LtdMainfreight drives excellent results through prudent managementWhy did you buy that stock? [Mainfreight Ltd]Mainfreight 2008 Annual report worth readingKiwiRail will cost MainfreightMainfreight keeps on truckinA rare breedPumpkin Patch LtdPumpkin Patch Ltd [
PPL.NZ] was well and truly battered and bruised during 2008 with a 60% share price drop so I figured there was room for some upwards movement in share price.
It reached a low of 78c earlier this year but it is actually up by around 4% since December 17 2008.
Related LinksPumpkin Patch Ltd financial dataPumpkin Patch @ Share InvestorPumpkin Patch buyback shows confidence in the futurePumpkin Patch takes a hitPumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buyingWhy Did you but that Stock? [Pumpkin Patch]Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mysteryPumpkin Patch a screaming buyBroker downgrades of PPL lack long term visionPumpkin's expansion comes at a costPumpkin Patch VS Burger FuelPumpkin Patch profits flattenNew Zealand Retailers ring up costs not tillsOther Quotable Notables (Part 2)
Telecom NZ [
TEL:NZ] is at exactly the same price it was on December 17 and my pick remains to buy on weakness close to 2 bucks.
Contact Energy [
CEN:NZ] Trustpower [
TPW:NZ] and Vector[
VCT:NZ] are still good buys and Contact Energy has lost 15% of its share price since December 18, mainly due to regulation uncertainty and clearly the weakened share price makes it even more attractive. Trustpower remains pretty even and Vector has risen around 5%.
Auckland International Airport[
AIA:NZ] has rise a few percentage points and still remains a strong buy on weakness.
Westpac [
WBC:NZ] and ANZ Bank [
ANZ:NZ] have both risen by 15% in the last 3 months .
Additional Stock Picks for March 26 2009
I would include all my December 17 2008 picks on share price weakness and would include the following.
Goodman Fielder [
GFF.NZ] because it is near its all time lows while still an attractive long term proposition.
Michael Hill International [
MHI.NZ], like Goodman, its share price has been given a good beating and I think great value. Its in good financial shape but under short-term pressure from a sales slowdown.
Sky City Entertainment [
SKC.NZ],
my biggest holding, has been beaten down since December 2008 but has still managed a good profit result for
half year ending December 31 2008, buy on any weakness below the current share price of NZ$2.78.
Disclosure: I own RYM, FPH, PPL, AIA, SKC, MHI, GFF and MFT sharesRelated Share Investor ReadingShare Investor's 2009 Stock PicksRelated Amazon Reading
Free Cash Flow: Seeing Through the Accounting Fog Machine to Find Great Stocks (Wiley Finance) by
George C. Christy Buy new: $32.97 / Used from: $37.39
Usually ships in 24 hoursc Share Investor 2009
