As one of the weekend "tasks" of this website, I like to look back on stock picks from the past. Starting about a year out, I have missed enough weekends of review that I am now 1 1/2 years out on reviews. On June 17, 2007, I reviewed stock picks from the week of January 16, 2006 . Moving ahead a week, let's take a look at the picks from the week of January 23, 2006!
As I have frequently pointed out, these reviews assume a 'buy and hold strategy' of investing, where equal dollar amounts of each stock are purchased and held regardless of subsequent price action. In practice, I advocate and employ a very different strategy that sells stocks quickly on small losses and slowly as the stocks appreciate. However, for the ease of this review, this analysis assumes a simpler buy and hold approach to all of these stock picks. The difference in this approach would certainly affect the outcome of the performance.
Enough of the introduction! Let's take a look at the four stocks that were "picked" on the blog during the week of January 23, 2006. Please note that all charts are posted from StockCharts.com .
On January 25, 2006, I picked Trimble Navigation (TRMB) for Stock Picks Bob's Advice when the stock was trading at $41.76. On February 23, 2007, Trimble had a 2:1 stock split making my effective pick price actually $20.88. TRMB closed at $32.50 on July 6, 2007, for a gain of $11.62 or 55.7% since posting.
On May 3, 200, Trimble reported 1st quarter results . Revenue for he quarter increased 27% to $285.7 million from $225.9 million in the first quarter of 2006. Net income came in at $28.7 million, up 11% over net income of $25.8 million in the same quarter in 2006. Earnings per share came in at $.24/diluted share, up from $.22/diluted share during the 1st quarter of 2006.
With this great earnings report, a solid Morningstar.com "5-Yr Restated" financials , and the nice chart,
TRIMBLE NAVIGATION (TRMB) IS RATED A BUY
$32.42 (07/09/07)
