Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice. As always, please remember that I am an amateur investor. I am not a professional investment advisor so please consult with your professional investment advisor prior to making any decisions based on information on this website.
It is late Sunday, and I really should have gotten this done earlier. But let me see if we can cover this quickly and get right down to business!
What I like to do on weekends, is to go back and look at prior stock picks with about a year trailing period, and see how the stocks have done since they were "selected" on this blog. This discussion assumes a buy and hold strategy which is not what I employ nor do I recommend this approach. I much rather sell my losers quickly and my winners slowly!
Red Hat (RHAT) was selected on 3/24/04 (you can go to the list of dates along the left side of the main blog, and see the original posts if you like!) at a price of $21.44. RHAT closed on 5/13/05 at $12.35 for a loss of $(9.09) or (42.4)%.
On March 31, 2005, RHAT reported 4th quarter 2004 results. Revenue for the fourth quarter was $57.5 million, a 56% increase over the prior year, same quarter revenue. Net income came in at $11.8 million, up from $4.8 million the prior year, or on a diluted basis, up 100% to $.06/diluted share from $.03/diluted share the prior year.
On March 24, 2004, I posted Artisan Components (ARTI) at $18.88/share. ARTI was acquired by ARM holdings for $36.32/share on 12/24/04 for a gain of $17.44 or 92.4%. I had to chase down the acquisition price and that is the best I can determine from the ARM website!
Avon Products (AVP) was "picked" here on Stock Picks at $75.35/share on 3/25/04. AVP closed at $38.65/share after a 2;1 split on 6/1/04. Thus, the effective pick price was $37.68, so the stock has gained only $.97/share or 2.6%.
On May 2, 2005, AVP reported 1st quarter 2005 results. Revenue for the quarter was up 7% to $1.88 billion. Net income grew to $172.0 million this quarter from $148.1 million the prior year. Diluted eps grew 16% to $.36/share up from $.31/share the prior year same quarter. In addition, the company raised the full year 2005 earnings outlook.
Finally, National Medical Health Card (NMHC) was selected on stock picks at $25.06 on 3/26/04. NMHC closed at $24.20 on 5/13/05, for a loss of $(.86) or (3.4)%.
On May 9, 2005, NMHC posted 3rd quarter 2005 results. Revenue for the 2005 fiscal 3rd quarter grew to $199.3 million, up from $159.7 million the prior year. Net income was up over 100% to $3.3 million, from $1.6 million the prior year. On a diluted EPS basis, this came out to $.27/share, up from a loss of $(11.17)/share the prior year.
So how did we do during that week in March a bit over a year ago? Averaging the four stocks gives us a gain of 12.3% since posting.
Thanks again for stopping by! If you have any questions or comments, please feel free to email me at firstname.lastname@example.org.