Thursday, May 24, 2007

top 5 stock picks

I want to introduce a new post-series called 'top 5 stock picks', where I select 5 stocks that I currently believe to be undervalued, and then check on the progress of these stocks over longer time frames. Basically, I believe it will be a fun way to test my models and analysis of stocks.

Remember, I am not a financial advisor.

Here are my top 5 stock picks as of May 24, 2007:

1. Manulife Financial (MFC) = $39.72

2. Lowes Companies (LOW) = $32.06

3. FedEx Corporation (FDX) = $105.92

4. Walgreen Company (WAG) = $44.59

5. Johnson & Johnson (JNJ) = $63.52

I may elaborate on why I like these stocks right now, and why I believe they are cheap going forward, in future posts in the series.


Middle Class Millionaire said...

Really looking forward to your analysis. I have a similar list and just recently bought some more JNJ.


Mr. Cheap said...

I'll be looking forward to your analysis too.

I'm guessing that dividend growth had a lot to do with your MLF and JNJ purchases.

Nurse B, 911 said...

JNJ & WAG are probably my two favourite US health stocks at the moment. Each is cheap on a multiple basis and moving forward I think management's done a wonderful job of positioning themselves to remain competitive in their respective markets even with a US slowdown.

FourPillars said...

How are you going to follow the progress of these stocks?

moneygardener (AKA investor99) said...

Thanks for the comments.


Basically I am going to track the return that these stocks are able to garner over various time periods when compared to the market, and perhaps indices that I can relate to the stocks. For example I might compare MFC's one year performance vs. a Canadian financial services index. This should give me an idea of whether or not they were good selections at that particular point in time on valuation, which I believe them to be.