Judging Fortune By Its Cover

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Finance magazines, like any other glossy fighting for your attention on the newsstand, know the power of listicles. Throw digits on the cover and travelers rushing through the airport and moms browsing through Barnes & Noble are more likely to pick up your rag. Which explains why, in December, Fortune gave you a list of 10 stocks they thought were sure bets to increase the value of your portfolio in 2008.

Sure, we're only four months in, by how is Andy Serwer's team measuring up so far?

The S&P 500 Index is down 5.46%, the Nasdaq is down 9.21%, and the Dow Jones Industrials Average is down 3.32%.

Annaly Capital Management (NLY). “It buys mortgage-backed securities issued by government-sponsored enterprises like Fannie Mae and Freddie Mac…” Down 5.5%.

Berkshire Hathaway (BRK.B). “Warren Buffett knows how to exploit panics.” Down 9.73%.

Dick’s Sporting Goods (DKS). “Dick’s emphasizes a store-within-a-store sales approach. Each department has its own look and staff, which appeals to the enthusiast who purchases a lot of sporting goods.” Down 4.43%.

Electronic Arts (ERTS). “Still, if there’s one tech niche that should be immune to a slowdown, it’s videogames… It’s now the No. 2 developer of Wii games, behind only Nintendo.” Down 10.87%.

Genentech (DNA). “Even with the FDA setback, Genentech is still expected to grow earnings 18% next year.” Up 7.22%.

General Electric (GE). “Immelt has sold off laggard operations such as insurance and plastics, putting more emphasis on manufacturing and infrastructure businesses. The timing has been excellent.” Down 12.44%.

Jacobs Engineering (JEC). “in a slowing economy, you want to own companies that can demonstrate superior earnings growth regardless of what’s happening around them.” Down 6.89%.

Merrill Lynch (MER). “Yes, Merrill’s shares deserved a punishment for the firm’s mortgage-related bungling. But the public flogging has far exceeded the transgression, which is why smart investors should buy this stock before everyone else comes to their senses.” Down 12.38%.

Petrobras (PBR). “Petrobras is cheap enough, at 16 times earnings, that it can be a winning investment…” Up 11.78%.

St. Joe (JOE). ”… [W]hen Florida real estate does rebound, investors will be kicking themselves for not recognizing today’s $28 stock price for St. Joe Co.” Up 12.56%.

[Consumerism Commentary]

Apr 23, 2008 · Link · Respond
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