Forbes Newsletter Watch
Summer Stock Buys: A Baker's Dozen
John Dobosz and Matt Rand, 05.27.05, 12:00 PM ET
Click here to see which stocks the gurus are buying for the summer of 2005
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NEW YORK - Despite the stock market rally of the past few weeks, 2005 has so far been a dismal one for stock investors. The S&P 500 is down nearly 1%, the Nasdaq is off 5.23% and the Dow Jones Industrial Average has fallen 2.6%.
However, most investment advisers still cite reasons to be bullish. Gross domestic product grew at a healthy 3.5% annualized rate in the first quarter, and corporate profits as a percentage of GDP are at their highest level since 1947. Moreover, despite Alan Greenspan's consistent rate hikes, ten-year Treasury yields remain at historically low levels.
Click here to download Forbes Newsletters' new free report, "Guru Picks: Summer Stock Buys--A Baker's Dozen."
Most investment advisers are still buying stocks, albeit selectively. What are the top-performing investment newsletter editors buying? A recent survey by Forbes reveals that independent advisers' current picks run the gamut, from an oil and gas bargain cited by Matt Ragas and Bill Martin of FindProfit to a software company that, according to Buyback Letter editor David Fried, has a strong history of repurchasing its shares. Two of Fried's buyback stock portfolios currently top Hulbert Interactive's ranking of newsletter performance year-to-date. Fried's Health Care Buyback Index has gained an impressive 11.8%.
Click here to see which stocks the gurus are buying for the summer of 2005
If one sector does stand out it would have to be technology and digital entertainment. Newsletters editor Bernie Schaeffer, for example, likes Pixar (nasdaq: PIXR - news - people ), while David Mentley of Display Technology Investor newsletter is buying high-definition flat-screen giant LG Philips LCD (nyse: LPL - news - people ).
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In all, 13 independent newsletter editors have provided Forbes with 13 fresh stock buys for the summer of 2005. Included among our contributing stock pickers is John Buckingham, editor of the Prudent Speculator, whose recommendation of oil tanker OMI (nyse: OMM - news - people ) gained over 75% since last June, and Forbes Wireless Stock Watch Editor Nikhil Hutheesing. Hutheesing's recommendation of Verisign (nasdaq: VRSN - news - people ) last summer has gained 73% in under 12 months. Bell Microproducts (nasdaq: BELM - news - people ), a pick from Forbes Growth Investor Editor Vahan Janjigian, has gained 34%. Other gurus contributing fresh stock buys this year include John Markman of Stock Tactics Adviser, Jack Adamo, of Insider's Plus, Jim Oberweis of the Oberweis Report and Dan Sullivan of the Chartist.
Click here to see which stocks the gurus are buying for the summer of 2005
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