"Looking Back A Year" A review of Stock Picks from the week of September 27, 2004





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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, so please remember to consult with your professional investment advisors prior to making any investment decisions based on information on this website.

In the previous entry, I discussed about the different aspects of this blog. With this entry I would like to address the 'quality control' issue. This is the part that examines past picks, where I look back about a year and see how picks from that trailing week period have performed. As I also point out elsewhere, this performance evaluation assumes a buy and hold strategy, something I don't actually do in real life. I sell my losers quickly and sell my gainers slowly piecemeal. This difference would certainly affect performance.

On September 29, 2004, I posted Perot Systems (PER) on Stock Picks Bob's Advice, when it was trading at $16.14. PER closed at $14.17 on 12/2/05, for a loss of $(1.97) or (12.2)% since posting.

On November 1, 2005, Perot Systems announced 3rd quarter 2005 results. Revenue climbed 12% to $510.1 million from $454.3 million the prior year same period. However, quarterly income dropped to $25.4 million or $.21/share, from $26.6 million or $.22/share the prior year.

On September 30, 2004, I posted Sauer Danfoss (SHS) on Stock Picks Bob's Advice when it was trading at $17.08. SHS closed at $18.67 on 12/2/05, for a gain of $1.59 or 9.3% since posting.

On November 1, 2005, SHS announced 3rd quarter 2005 results. Sales for the quarter grew 5% to $342 million from $324.7 million the prior year same period. Net income, however, declined to $4.3 million or $.09/share, down from $7.7 million or $.16/share the prior year same period.

So how did we do with these two stocks? Well, PER had a (12.2)% loss since posting, and SHS had a 9.3% gain. Thus the performance averaged to a loss of (1.45)% since posting. Nothing to write home about!

Thanks again for stopping by and visiting! If you have any questions or comments, please feel free to email me at bobsadviceforstocks@lycos.com or just leave them right on the blog.

Bob