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Fall 2008 Stock Showdown By Jordan Meyer September 11, 2008
The stock market has certainly been unpredictable
over the past nine months.
Beginning in January, the home mortgage crisis
has brought havoc upon the entire market.
As a result, the financial sectors of the
market have been struggling mightily, as illustrated by the
government’s recent overtaking of Fannie Mae and Freddie Mac.
Throughout the spring, the Fed attempted to minimize the downturn of
the housing market by executing numerous interest rate cuts.
These particular rate cuts have provided
relief, but have also resulted in a much weaker dollar and signs of
inflation.
Since the cuts, the United States has
encountered record energy prices, with oil creeping into the
$145/barrel range.
As a result, the prices of consumer goods have
risen dramatically, creating difficult times for Americans.
This year’s edition of the “Stock Showdown”
features Mr. Adamson’s Financial Management class versus the staff
of the MLC Ticker.
The assignment of picking a portfolio of 22,
well-diversified stocks has proven to be difficult.
The unpredictable nature of the current
market, coupled with the fact that we are in a Presidential Election
Year will certainly make this year’s “Showdown” a battle to the
finish line.
The 22 stocks chosen for the MLC Ticker portfolio
include: Lindsay Corporation (NYSE: LNN), Petroleo Brasileiro SA
(NYSE: PBR), Freeport-McMoRan Copper &Gold Inc. (NYSE: FCX), H.J.
Heinz Co. (NYSE: HNZ), Apache Corporation (NYSE: APA), Graham
Corporation (NYSE: GHM), Exelon Corporation (NYSE: EXC), Johnson &
Johnson (NYSE: JNJ), Coca-Cola Company (NYSE: KO), Lockheed Martin
(NYSE: LMT), Potash (NYSE: POT), Airgas Inc. (NYSE: ARG), Walmart
(NYSE: WMT), Wells Fargo Company (NYSE: WFC), TJX Companies
Incorporated (NYSE: TJX), Buckle Incorporated (NYSE: BKE),
Aeropostale Inc. (NYSE: ARO), Jacobs Engineering Group (NYSE: JEC),
ABB Limited (NYSE: ABB), Quanta Services Inc. (NYSE: PWR), Research
in Motion Limited (NYSE: RIMM), CSX Corporation (NYSE: CSX).
The portfolio mostly consists of
well-diversified domestic stocks, with some foreign influence.
The 22 stocks chosen by Mr. Adamson’s Financial
Management Class include: Jacobs Engineering Group (NYSE: JEC),
Freddie Mac (NYSE: FRE), Fannie Mae (NYSE: FNM), Home Depot (NYSE:
HD), American Express Company (NYSE: AXP, Exxon Mobil Corp. (NYSE:
XOM), Nokia Corp. (NYSE: NOK), Verizon Communications Inc. (NYSE:
VZ), Lehman Brothers Holdings Inc. (NYSE: LEH), LG Display Co., Ldt.
(NYSE: LPL), Merrill Lynch (NYSE: MER), Lowe’s Corp. (NYSE: L),
JPMorgan Chase (NYSE: JPM), China Eastern Airlines Corp., Ltd.
(NYSE: CEA), Red Hat Inc. (NYSE: RHT), Westar Energy Inc. (NYSE:
WR), General Motors Corporation (NYSE: GM), Health Net Inc. (NYSE:
HNT), Anheuser-Busch Companies Inc. (NYSE: BUD), UBS Ag (NYSE: UBS),
Owens Corning (NYSE: OC), Merck & Co. (NYSE: MRK), Walmart (NYSE:
WMT).
The Adamson 22 features some interesting,
mostly domesticated picks.
We’ll see if the Freddie Mac, Fannie Mae, and
Lehman Brothers picks can rebound over the next few months, as
picking these stocks now is like to trying to catch a falling knife.
The unpredictability of the stock market over the past nine months
should prove to make the next three months of the “Stock Challenge”
interesting. The MLC Ticker staff won the first two “Showdowns” and
is looking forward to putting another tally in the win column.
Stay up to date and watch for Stock Spotlights on MLC Ticker.
(www.mlcticker.biz).
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