And The Winners Of The Second Stock Contest Are…

  • April 1, 2008

“D2cold” with an overall gain of 23.37% in just one month through his picks soft drink maker Cott Corp (COT), Canada based paper and wood products company AbitibiBowater (ABH) and the unstoppable fertilizer company Potash Corp. of Saskatchewan (POT). POT, which is currently trading at $155.21 was a $29 stock less than two years ago and “D2cold” made a good point with his question “what goes up, must… come down?” while shorting the stock. I did not think I would see the day when a fertilizer company would trade for more than 10 times its sales, a P/E of 45.61 and a dividend yield of just 0.30%. The forward P/E of 16.62 implies expectations of tremendous growth in either potash prices or fertilizer volume in 2008.

The runner up of the subscriber stock contest was “yc” with his brilliant move of shorting Bear Sterns (BSC). You can check out the rest of his picks along with the rest of the contestants here.

Gary of remained the unchallenged king of the stock contest for the top financial bloggers with a gain of 21.52%. Interestingly every other blogger (including myself) posted negative returns. A decision to short Washington Mutual (WM) helped the blogger Accrued Interest win the second prize in the blogger contest. You can check out the rest of his picks along with the rest of the bloggers here. I certainly hope that the first prizewinners do not pick the Nintendo Wii and instead pick the $250 gift certificates, as the Wii’s are still difficult to get hold of. Maybe it is not too late to look into Nintendo (NTDOY.PK) as a potential candidate for the model portfolio.

It was fun to watch how this contest unfolded. If there is enough interest, we will launch a longer contest for the second half of 2008. So please drop me a note and let me know if you would be interested in such a contest.

First Prize:Second Prize: