Withstanding market woes: Silas Myers' stock picks prove to have an enduring competitive advantage.Higher interest rates, a slowdown in the real estate market, and rising energy and raw material prices confirmed reservations among investors about stock market performance. In the face of such uncertainty, Silas Myers, senior vice president, analyst, and portfolio manager at Roxbury Capital Management, L.L.C., recommended companies that would hold their competitive advantage. Myers' stock picks withstood much of the market's woes and outperformed the S&P 500. Myers chose four stocks, which over the 52-week period from May 26, 2005 to May 26, 2006, produced a total return of 9.49%. By contrast, the S&P 500 realized a total return of 8.9% during the same period. His top performer, Fisher Scientific Fisher Scientific, formally Fisher Scientific International, Inc. and colloquially Fisher was a biotechnology company that provided products and services to the global scientific research and United States clinical laboratory markets. International Inc. (NYSE NYSE See: New York Stock Exchange : FSH FSH follicle-stimulating hormone. FSH abbr. follicle-stimulating hormone Facioscapulohumeral muscular dystrophy (FSH) ), the worldwide scientific research and clinical laboratory products company, posted a gain of 18.81%, increasing from $62.35 to $74.08. "The stock traded as high as $82.05 in May 2006 when the company announced its intent to merge with Thermo Electron Thermo Electron Corporation (TMO (NYSE)) (incorporated 1956) is a major provider of analytical instruments and services for a variety of domains. Thermo has revenues of over $2 billion, and employs 11,000 people in 30 countries. Corp., rising 31.6% over its May 2005 price," says Myers. "We continue to hold a substantial position in this company and believe the value created by the merger will lead to a higher stock price in the future." First American First American may refer to:
abbr. financial aid form ), the provider of title and specialty insurance as well as mortgage, property, and credit information, also improved its position, increasing from $37.91 to $42.49, a gain of 12.1%. A slowdown in the housing market, however, led to a slight pullback in shares of First American. "Despite this, we continue to hold a position in this stock and believe it is substantially undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. at these levels," Myers says. The performance of Tiffany & Co. (NYSE: TIF TIF Tagged Image File (file name extension) TIF Tax Increment Financing TIF Temporary Internet Files TIF Transport Innovation Fund (UK) TIF Telecommunications Infrastructure Fund ) was less than robust. Its stock price moved from $30.87 to $32.82, a 6.32% gain. Renowned for its jewelry, china, crystal, and accessories, the retailer showed promise when its stock increased to $43.80 a share last November. But Tiffany was unable to sustain its performance. "Although problems in its Japanese operations subsided and some store sales comparables improved both domestically and internationally, we exited this stock at $39.74," says Myers. Shares of broadband cable provider Comcast Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CMCSA) were marked by a flat performance, increasing slightly from $32.04 to $32.28--a gain of 0.75%. "We sold our entire position in Comcast in October 2005 at $28.59 due to fears of a more competitive pricing environment between high-speed data versus DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary and increased competition in video from DirectTV and EchoStar," explains Myers. Comcast has improved its position and the competitive environment has fared better since the company sold its shares. As such, Comcast is one to watch. SILAS MYERS Stock Performance TOTAL RETURN: 9.49% CURRENT VALUE OF $4000 INVESTMENT: $4,379.60 NASDAQ CMCSA 05-26-05 $32.04 05-26-06 $33.28 TOTAL RETURN: 0.75% CURRENT VALUE OF $1000 INVESTMENT: $1,007.49 NYSE FAF 05-26-05 $37.91 05-26-06 $42.49 TOTAL RETURN: 12.08% CURRENT VALUE OF $1000 INVESTMENT: $1,120.81 NYSE FSH 05-26-05 $62.35 05-26-06 $74.08 TOTAL RETURN: 18.81% CURRENT VALUE OF $1000 INVESTMENT: $1,188.13 NYSE TIF 05-26-05 $30.87 05-26-06 $32.82 TOTAL RETURN: 6.32% CURRENT VALUE OF $1000 INVESTMENT: $1,063.17 * TOTAL RETURN REFLECTS STOCK APPRECIATION AND INCLUDES STOCK SPLITS AND DIVIDENDS SOURCE: YAHOO FINANCE Note: Tables made from line graph. |
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