I thought it would be fun to make a fictitious portfolio surrounding the sponsors of NASCAR Sprint Cup Race winners this season. Here's how it will work:
1. The morning after the race I will fictitious buy equal amounts of stocks of the two top sponsors (or companies that produce the product) of the winner of the most recent Sprint Cup Race at the opening price.
2. Since I will be buying new stocks approximately every week I will allocate $1000 per stock per week.
3. Any dividends will be used as the year goes on for new stock purchases. So some weeks, new purchases may be larger than $1000 based on dividends available.
Those are the basic rules so far.
This Week Matt Kennseth won the Daytona 500. His major sponsors are Best Buy (NYSE:BBY) and Valvoline which is produced by Ashland Inc. (NYSE:ASH). Both are stocks I would never touch if I was screening stocks in a normal way. Best Buy is down to $25 from its 52wk high of $33.22. It pays no dividends. ASH is near its 52 wk high $68.81 @ 63.70. It pays a 1.1% dividend.
So on February 28, 2012, I would have bought 40 shares of BBY @ $24.99 ($999.60) and 16 shares of ASH @ 63.64 ($1018.24).
I on not LONG either BBY or ASH. Remember this is for fun only.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.