Here's Ken Lee's picks for 2002:
boards.fool.com
Here's some of the work that goes on on the same board (a 1999 post): boards.fool.com
Found the name of the guy who came up with the four-stock approach: Charlie Perry: members.iquest.net
A couple of items of note: first, Ken is now focused much more on a stock's 50 week EMA than on its earnings growth. Ideally, he wants the 20 WEMA above the 50 WEMA, and the stock trading above both. If it's close, he'll use the daily 20/50 EMAs for confirmation.
And second - I was chatting with Ken the other day and he confirmed something I had noticed: stocks making the buy list two years straight tend to outperform regardless of how oversold they are (the notion that the amount of time a stock is oversold is also important). Stocks repeating in 2001 returned almost 40%, and only one (CAG) was in the red. The others were SPLS, NWL, JCI, HRB, SWK and WB.
There are only two repeat stocks on the list this year - CSC and TXT. I'm considering adding them (buy targets would be $49 and $41.50, respectively), for a portfolio of AEP, D, MRK, PFE, WM, CSC and TXT. I don't like CSC because I'm not sure its accounting issues were ever satisfactorily resolved (same with TYC, which is currently the most oversold stock after falling 8% last week), but the market seems to like it. Both stocks were up 3%-6% last week.
Finally, I tend to prefer the TrouncingTheDow.com picks (AEP, D, etc.) to Ken's own; they seem to be more value-oriented and more in line with my own approach. I'm intrigued by Ken's UIS pick, and may look more closely at USB too. Will watch both lists this year to see how they do.
(Orignally posted on SAII Jan. 6) |
