It’s that time of the year again! The time when I take out the back issues of Forbes, Fortune, Smart Money and Kiplinger to compare their hot stock, mutual fund, or ETF for the coming year to what actually happened at the end of the year. This issue comes from Forbes’ Decemeber 14, 2009 so let’s see their hot picks!
Interestingly enough, this is their “Investment Guide” annual issue but it lacks the typical predictions on ETFs, emerging markets and alternative funds found in previous years. The one thing they did focus on is a select few Healthcare Stocks.
The Buy
Cross Country Healthcare (CCRN): At press time, the stock traded at $8.96. It is trading today at $7.65. Representing a 14% LOSS per share.
Mednax (MD): At press time, the stock traded at $57.20. It is trading today at $64.17. Representing a 12% GAIN per share.
Unitedhealth Group (UNH): At press time, the stock traded at $28.97. It is trading today at $36.89. Representing a 27% GAIN per share.
The Sell
Boston Scientific (BSX): At press time, the stock traded at $8.27. It is trading today at $6.55. Representing a 20% Reward* per share. A reward would be realized when the investor saved money by dumping this stock if they owned it or they made a profit by shorting the stock.
Health Care Select ETF (XLV): At press time, the ETF traded at $30.16. It is trading today at $30.88. Representing a 2% Missed Opportunity.
Johnson & Johnson (JNJ): At press time, the stock traded at $62.17. Surprisingly, it is still trading at that price though it yields a pretty nice dividend of 3.47% so, technically that is a Missed Opportunity.
This backtest resulted in a below average rate of return on the buy side with +8.33%. And, a value of +4.87% return on the sell side.
The S&P 500’s YTD range is 1101.3 to 1223.9 which represents an 11.1% GAIN.
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