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Stock Picking Contest 2012 – Q3 Results

Best StockThe best stock picks Q3 is upon us and it’s time to have a look at our stock picking contest results. I am not doing great in terms of ranking but it’s not concerning either from a portfolio perspective. I can concede that I won’t finish first with CNQ and MFC in my list. The life insurance sector is going to be in the dog house well until the interest rates go up. Those that picked Apple are doing much better.

Q3 Standings

Here are the standings.

  1. 21.99% Where Does All My Money Go
  2. 17.52% Intelligent Speculator
  3. 10.67% My Trader’s Journal
  4. 10.39% Dividend Growth Investor
  5. 5.32% Dividend Mantra
  6. 4.49% Million Dollar Journey
  7. 1.34% The Passive Income Earner
  8. -2.21% The Wild Investor
  9. -11.04% The Financial Blogger
  10. -13.77% Beating The Index

My Best Stock Picks

As I mentioned initially, you won’t see gambling picks here. I am sticking to stocks that I would be confortable owning. I consider them my best stocks from a capital appreciation in the short term.

CNQ – Canadian Natural Resources

As a Canadian Dividend Aristocrat, CNQ is definitely underperforming. At the time of my pick, it was already down over the previous year but it has continued to go down. Natural gas segment of their business is not benefiting from the consistently low gas prices. It’s a large corporation in the energy sector and will benefit from the constant demand on energy we are all dependent on. Its business is 67% crude oil and 33% natural gas.

best stock

Disclaimer: I do not own CNQ at the time of writing.

BCE – Bell Canada

Aside from Apple, the telecom business is usually boring but the dividends is nice and healthy. In our low interest rate environment, the flock is definitely looking at the telecom to generate income and it can only push prices up for a little while. My thinking seems to have been on target here.

best stock

Disclaimer: I  own BCE, RCI.B and Telus at the time of writing.

MFC – Manulife

Low interest rates is no good for life insurance companies. All of them are being cautiously traded at the moment as their business is heavily reliant on the interest rates for profits. MFC won’t help me out in the contest this year. It’s low price can be nice to DRIP shares though if you are willing to hang in there in the short term.

best stock

Disclaimer: I  own MFC at the time of writing.

NA – National Bank

National Bank is mostly operating in Canada and has therefore less exposure to all the mess everywhere else in the world. Early in the year, I thought it was going to be a great pick. Bank fees and mutual fund fees are simply just a gravy train, so I get on board :) It has since flattened and although the economy is doing alright in Canada, there are no signs of gaining better momentum to justify a better growth for the rest of the year.

best stock

Disclaimer: I  own NA at the time of writing.

Readers: What picks would you have chosen?

Image: Simon Howden / FreeDigitalPhotos.net

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