New Stocks

Probably just chance, but I noticed a pattern today that stocks new on the top 25 list in 2008 have done very very well. I pull in the top 25 list greater than $1m pretty much every Monday morning. I then marked stocks that came on the list sometime in 2008 and had not been on the list in 2007. Here are some off the top of my head:

AIRV
DEPO
CAST
NTRI
IUSA
DLX
MRX
GHM
IGC
TIRTZ
PCR
BVSN
CITP
DTPI
LGTY
NVTL
PRXI
VRGY

I am sure I have forgotten a few, but on average, these stocks are up 12% from when they hit the list. The average stock has been on the list for 2 months, so that is a pretty snappy return. I remember a bunch of people pooh-poohed IGC when it came on the list saying it wasn't a real company. Guess what? That non-real company is up over 25%.

I saw today where Hilary Clinton is pushing to penalize companies avoiding taxes by being in Bermuda. My first thought was whether that would impact ACN as they are headquartered there (I suspect she won't be the last candidate to make that pitch). But ACN seems to pay its fair share of taxes.

Most Relevant Name - I saw a new stock on the lists today (not sure if new or if I just noticed it). LQDT. Their full name? Liquidity Services! I don't know why Bear Stearns and all these other liquidity strapped firms didn't call LQDT to solve their problems! Of course I am being facetious, they are a software firm... no help for Jimmy Cayne and his bridge playing buddies.

Finally, I saw where Steve Alexander (running the Magic Diligence site) has announced he will start charging for his advice. He does a nice job summarizing his picks and I am sure it takes some time and effort. Probably a little early to say whether he is any better than picking randomly. I have tracked his top buys (I do not sell when they drop off as that is not the MFI way) and he is slightly underwater. JTX (-39%), BVF (-14%), BBBY (-14%) and AMGN (-11%) have been a drag on his better picks of HURC, RECN and AMAT. Two and a half months is too early to judge obviously. But for me too early to pay as well. But I wish him well! I appreciate the entrepreneurial spirit. I am keeping my day job though. Very necessary as have to write my "uncle" some big checks this month.