Great companies, lousy stocks
TweetFollow Us on Twitter

Great companies, lousy stocks

By Bill Gunderson
of Gunderson Capital Management (http://www.PWstreet.com)

I’m selling my book on-line. Thanks to Google AdWords, they are flying through cyberspace.

Does that mean I am telling my clients to rush out and buy Google?

Not a chance.

Johnson & Johnson make some of the most trusted health care products in the world. Surely there is room in my list of 157 Best Stocks Now for such an important part of our national life. No. Not if you want to make money.

I’m using Microsoft products to write, send and read this article. Don’t even think about putting this in your portfolio.

These are all good companies. Great companies. But lousy stocks. Let’s see why.

When Google went public seven years ago, it made a lot of people a lot of money. When the company founders told Wall Street analysts they were not going to play the quarterly earnings game, and instead invest in new things that sometimes made money but were always interesting, investors scoffed.

They are still scoffing. After a recent conference call with company officials, Google investors complained that expenses were too high, profits were too low, and Google was throwing too much money around at too many things. Like wind mill farms, for example.

Google recently invested $100 million in an Oregon wind power project, and that is on top of wind investments in North Dakota, and the East Coast.

I am sure these projects are a lot of fun. But I am also sure that investing in Green Energy is a lousy idea -- if your objective is making money.

Over the last three years, Google’s stock has returned zero to investors. That is awful. Some of the best know professional investors in America are waiting -- hoping -- for Google to change. And they call that an investment strategy?

Same with Johnson & Johnson. For all I know this company is saving the universe. But I am sure it is killing a lot of portfolios because it is a darling of the big investment firms that love to put it in their clients’ portfolios.

Over the last three years, Johnson & Johnson has returned 5% to investors. If I owned that stock, that would make me ill.

The list goes on and on. If your portfolio is full of the stocks that have run you into the ground for years, and you are holding them because of their latest announcement that is going to turn everything around, good luck with that.

Because that is what you are counting on: Luck. That is not investing. That is gambling. Prospects are not profits.

For the last five years, analysts have been saying Apple is at the end of its lucky streak. But they just keep doing great things, the greatest is making money for its investors.

That is unlikely to change any time soon.

If you want to see an unfashionable company, you may not find it if you do not spend a lot of time in the lower-middle class warehouse districts. But that is where you will have to go to see one of my favorite stocks: CSX. It is a railroad. And it carries everything everywhere it goes.

I carry it in my portfolios because it delivers profits to shareholders. And looks like it will for a while. When it stops doing that, so will I.

Over the last five years, it has returned 19% percent per year.

Here’s a company I do not use, but probably should: It has been one of the greatest performing stocks of the decade: Priceline.

Surprised? Don’t be. It’s all in the numbers. Over the last ten years, Priceline has returned 84% per year over the last five years.

There are lots more out there: Netflix is a great stock too, averaging 50% per year over the last five years.

It is tempting to call this numbers-crunching -- and on some levels it is. But more than that, the profits are the best way to measure the performance of the people who run the company.

It is the best way to watch what they do. And not what they say.

And that is the best way to start picking your best stocks now.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

RapidWeaver 6.0.8 - Create template-base...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more
Artlantis Studio 5.1.2.7 - 3D rendering...
Artlantis Studio is a unique and ideal tool for performing very high resolution rendering easily and in real time. The new FastRadiosity engine now lets you compute images in radiosity-even in... Read more
MacUpdate Desktop 6.0.5 - Search and ins...
MacUpdate Desktop 6 brings seamless 1-click installs and version updates to your Mac. With a free MacUpdate account and MacUpdate Desktop 6, Mac users can now install almost any Mac app on macupdate.... Read more
BitTorrent Sync 2.0.82 - Sync files secu...
BitTorrent Sync allows you to sync unlimited files between your own devices, or share a folder with friends and family to automatically sync anything. File transfers are encrypted. Your information... Read more
Google Drive 1.20 - File backup and shar...
Google Drive is a place where you can create, share, collaborate, and keep all of your stuff. Whether you're working with a friend on a joint research project, planning a wedding with your fiancé, or... Read more
Simon 4.0.3 - Monitor changes and crashe...
Simon monitors websites and alerts you of crashes and changes. Select pages to monitor, choose your alert options, and customize your settings. Simon does the rest. Keep a watchful eye on your... Read more
Vitamin-R 2.23 - Personal productivity t...
Vitamin-R creates the optimal conditions for your brain to work at its best by structuring your work into short bursts of distraction-free, highly focused activity alternating with opportunities for... Read more
iDefrag 5.0.0 - Disk defragmentation and...
iDefrag helps defragment and optimize your disk for improved performance. Features include: Supports HFS and HFS+ (Mac OS Extended). Supports case sensitive and journaled filesystems. Supports... Read more
PCalc 4.2 - Full-featured scientific cal...
PCalc is a full-featured, scriptable scientific calculator with support for hexadecimal, octal, and binary calculations, as well as an RPN mode, programmable functions, and an extensive set of unit... Read more
FileZilla 3.10.2 - Fast and reliable FTP...
FileZilla (ported from Windows) is a fast and reliable FTP client and server with lots of useful features and an intuitive interface. Version 3.10.2: Note: Now requires a 64-bit Intel processor.... Read more

Warner Bros. Interactive Entertainment A...
Warner Bros. has some exciting games coming down the pipe! | Read more »
GDC 2015 – Star Trek Timelines will Prob...
GDC 2015 – Star Trek Timelines will Probably Make Your Inner Trekkie Squeal With Glee Posted by Rob Rich on March 4th, 2015 [ permalink ] Any popular fictional universe has its fair share of fan fiction – where belo | Read more »
Protect Yourself from an Onslaught of Ca...
Surprise Attack Games has announced a Cat-astrophic new physics puzzler called Fort Meow! In the game, a young girl named Nia finds her grandfather’s journal which triggers an all mighty feline attack! Why do the cats want the journal? Who knows,... | Read more »
GDC 2015 – Jelly Reef will be Game Oven’...
GDC 2015 – Jelly Reef will be Game Oven’s Last Hurrah, and it Seems like a Good Note to Go Out on Posted by Rob Rich on March 4th, 2015 [ permalink ] It’s sad knowing that Game Oven ( | Read more »
daWindci Deluxe Review
daWindci Deluxe Review By Campbell Bird on March 4th, 2015 Our Rating: :: BLUSTERY PUZZLESUniversal App - Designed for iPhone and iPad This updated puzzle game offers some creative gameplay and new mechanics, but still suffers from... | Read more »
Dungeon Hunter 5 Coming on March 12
Gameloft has excitedly announced that Dungeon Hunter 5 is on its way! Once again, you will adventure across the land of Valenthia exploring dungeons and fighting monsters. The game will have a new asynchronous multiplayer mode called Strongholds... | Read more »
GDC 2015 – The Sandbox 2 is Coming, and...
GDC 2015 – The Sandbox 2 is Coming, and Now it has Textures! | Read more »
Warner Bros. Interactive Announces Mort...
Mortal Kombat X, by Warner Bros. and NetherRealm Studios, will be a a free-to-play fighting/card-battle Mortal Kombat game. The game promises card collecting, multiplayer team combat, classic characters such as Scorpion, Sub-Zero and Raiden, and the... | Read more »
GDC 2015 – Piloteer is Whitaker Trebella...
GDC 2015 – Piloteer is Whitaker Trebella’s Latest Project, and it’s Definitely Something DIfferent Posted by Rob Rich on March 3rd, 2015 [ permalink ] You know | Read more »
PangoLand Review
PangoLand Review By Amy Solomon on March 3rd, 2015 Our Rating: :: COME VISIT PANGO AND FRIENDSUniversal App - Designed for iPhone and iPad PangoLand is an open-ended world full of familiar characters, bright colors and interactive... | Read more »

Price Scanner via MacPrices.net

iPad: A More Positive Outlook – The ‘Book Mys...
It’s good to hear someone saying positive things about the iPad. I’ve been trying to bend my mind around how Apple’s tablet could have gone from zero to bestselling personal computing device on the... Read more
Mac Pros on sale for up to $279 off MSRP
Amazon has Mac Pros in stock and on sale for up to $279 off MSRP. Shipping is free: - 4-Core Mac Pro: $2725.87, $273 off MSRP (9%) - 6-Core Mac Pro: $3719.99, $279 off MSRP (7%) Read more
Sale! 13-inch Retina MacBook Pros for up to $...
B&H Photo has 13″ Retina MacBook Pros on sale for up to $205 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.6GHz/128GB Retina MacBook Pro: $1219.99 save $80 - 13″ 2.... Read more
Another Tranche Of IBM MobileFirst For iOS Ap...
IBM has announced the next expansion phase for  its IBM MobileFirst for iOS portfolio, with a troika of new apps to address key priorities for the Banking and Financial Services, Airline and Retail... Read more
Sale! 15-inch Retina MacBook Pros for up to $...
B&H Photo has the new 2014 15″ Retina MacBook Pros on sale for up to $250 off MSRP for a limited time. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $... Read more
WaterField Designs Introduces the Minimalist...
With Apple Pay gaining popularity, Android Pay coming in May 2015, and loyalty cards and receipts that can be accessed from smartphones, San Francisco’s WaterField Designs observes that it may be... Read more
Sale! 15-inch 2.2GHz Retina MacBook Pro for $...
 Best Buy has the 15″ 2.2GHz Retina MacBook Pro on sale for $1774.99 $1799.99, or $225 off MSRP. Choose free home shipping or free local store pickup (if available). Price valid for online orders... Read more
13-inch 2.5GHz MacBook Pro (refurbished) avai...
The Apple Store has Apple Certified Refurbished 13″ 2.5GHz MacBook Pros available for $170 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 13″ 2.5GHz... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $999.99 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
27-inch 3.5GHz 5K iMac in stock today and on...
 B&H Photo has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2299 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’s the lowest price available for... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
Position Opening at *Apple* - Apple (United...
…Summary** As a Specialist, you help create the energy and excitement around Apple products, providing the right solutions and getting products into customers' hands. You Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** The Apple Store is a retail environment like no other - uniquely focused on delivering amazing customer experiences. As an Expert, you introduce people Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.