Following the "Best"
04/22/2005 12:00 am EST
By tracking over 65,000 virtual model portfolios, Ken Kam isolates the best non-professional stock pickers. He then looks for those stocks that are being bought by the "best" performers, while concurrently being sold be the "rest". Here are some of his latest buys.
"Sierra Wireless Inc (SWIR NASDAQ) develops products that permit users to access wireless data and voice networks using notebook computers, personal digital assistants, vehicle-based systems, and mobile phones. The Best Investors have bought and sold SWIR pretty effectively over the years. They held a relatively large position in SWIR as it jumped 250% during 2003. Then in January 2005 the Best began selling, as the price dropped from $17 to $10. Now, as the price has dropped, the 'Best' have jumped back in again.
"American Technology (ATCO NASDAQ) is engaged in sound reproduction technologies and products. At the end of last year, the Best investors' holdings in ATCO was small, ranking in only the top 31% of the portfolio. Since the new year, they significantly increased their position - by a whopping 688%. ATCO now ranks within the top 4%. In March, ATCO announced record quarterly earnings for their quarter ending on December 31. ATCO has a market cap of $180 million.
"TJX Companies (TJX NYSE) is an off-price retailer of apparel and home fashions in the US and worldwide. IUt has been in the Best investors portfolio for a long time. However, at the end of March 2004, as it reached it¹s all-time high, the Best more than doubled their position. And when it dropped in July, the Best added 70% more to their portfolio. After locking in some gains after a price rise last Oct./Nov., the Best are now buying again, putting TJX in the top 16% of all holdings in their portfolio.
"Doral Financial(DRL NYSE) is a financial holding company engaged in mortgage banking operations in Puerto Rico. In March, based on downgrades from several analysts, the stock tumbled 44%. As the market sold the stock, the Best were buying; increasing their position by 39% that week and then 75% the next week. In recent trading, the price dropped further and they kept buying, adding another 7% to bring the total increase in shares of DRL to 160% since the drop."