A member on the Financial Webring Forum, probably one of the best online resources for Canadian investors, is running a stock picking contest for 2008. It is a simple contest, you pick three stocks and let them ride for the entire year. The winner is determined by the best return over 2008 assuming equal weighting of each stock.
I don't do any due diligence whatsoever on the stocks that I select for this contest. I try to go outside of the boundaries of my conservative universe of stocks, as I am shooting for high short term growth. This year I am using a bit of what I would call a 'momentum' theme with a focus on technology and emerging market needs. Here are my picks:
Garmin Ltd. (GRMN) - After receiving a GPS navigator for Christmas, I am convinced that everyone needs one of these things. Guys, no more asking for directions....Ladies..no more asking 'Are we lost?'...reason being...you'll never be lost with a navigator. Garmin is coming off of a stellar 2007, where the stock gained 80%. More gains could be in store as everyone clamours to buy one of these, when they borrow their friend's Christmas gift.
Google Inc. (GOOG) - The innovation seems to have no end at this internet leader. With the success of YouTube, along with their other advertising presence online, they should continue to really crank out the earnings. As they delve into other markets like wireless, etc., if they bring the same genius that they have brought to the web, they should have much success. GOOG also had a great 2008, as the stock rose 54%.
Hanfeng Evergreen Inc. (HF) - Fertilizer + China...enough said. The stock was up 245% in 2007. This would be the most volatile of the three as if China's growth continues unabated, HF should grow like a cornstalk again in 2007, whereas any small signal of slowing growth in China could really plow the stock under.
As mentioned I have failed to do any proper due diligence on these three companies. All three are probably currently priced for perfection, and could suffer serious losses in 2008 and beyond. I am not a financial advisor, and I have been dead wrong many times before.