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hernanday
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J. McLennon is a graduate from the top business school in the nation and has worked in venture capital and the financial industry for 7 years and has worked in analyzing financial products and securities for leading financial service organizations generating returns that beat the market... More
  • How To Invest. 0 comments
    Mar 6, 2013 3:10 AM

    My fellow readers, you are aware of my stock picks, most do well, some do great and some do not do so well. So I want to give you a tip on how to invest. If a stock is in your portfolio for over 1 month and has not generated a return, or generates 7% or more in losses, drop that stock from your portfolio. This will limit your down side from losses. On the upside, hold onto stocks that are rising and I have given recommends on stocks that risen 57% like CPSS, ones that have risen nearly 30% like infinity pharmaceuticals, interoil corporation 33%, Green mountain coffee roasters 17%, Jefferies Group 17%, Strum Ruger and Company 26%, Citigroup Inc 10%, JP Morgan 13%, Goldman Sachs 20% plus a small dividend. Most of the stocks I've picked have been winners, but if you find one losing 7% or more and drop it from your portfolio, you should have seen at least 15-20% return in the first quarter of this year if you followed my stock picks.

    Going back to my article best stocks of 2013

    I had 3 top picks

    SWHC: 21.09%

    DDD: -3.09%

    ASR: 17.3%

    Average Return = 11.76%

    Lets compare that to the market

    Nasdaq: 6.78%

    NYSE: 8.77%

    S&P 500: 7.97%

    Average Return = 7.84%

    My top picks outperform the market significantly, and I expect for the chasm to increase. ASR has a dividend coming in May, SWHC still has room to grow and DDD will see growth. In fact DDD was delivering a 30% return by January 25, 2013. However the stock price fell significantly in February and then there was a stock split. The earnings came in slightly below analyst estimates at about $101 million instead of $103 million. Although the stock price fell because DDD didn't meet the expectations of analyst its performance and fundamentals are still strong, it is a fast growing company in one of the fastest growing industries in America. It may have been temporarily overvalued, but it wasn't by much. I recommend holding this stock until its next earnings release.

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