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'09 Blade Stock Market Entries Favor Familiar Names
Sunday, January 11, 2009 10:17 AM


(Source: The Blade)trackingBy Jon Chavez, The Blade, Toledo, Ohio

Jan. 11--IN A NORMAL YEAR, it might not make sense to pick blue chip stocks like Apple, Microsoft, or General Electric as a strategy to win The Blade's 2009 Stock Market Contest.

After all, blue chips are usually mature and don't have a lot of growth potential, said Andrew Weiner, a financial adviser at the Toledo office of Smith Barney, one of the co-sponsors of the contest that began Jan. 1.

But with the stock markets losing nearly 40 percent of their value last year and blue chips getting beaten down, blue chips might not be a bad play this year, Mr. Weiner said.

"I think some of them do probably have some growth," he said.

The contest drew 727 entrants. Altough some went for a little known but potentially explosive stock -- Intuitive Surgical Inc., which makes robotic surgery consoles -- the majority sought out better-known names, Mr. Weiner said.

Among the most popular: Apple Inc., Microsoft Corp., Verizon Communications Inc., General Electric Co., Oracle Corp., Yahoo! Inc., Google Inc., McDonald's Corp., Wal-Mart Stores Inc., and First Solar Inc.

"It seems like we're in the midst of a technology boom, even though it's not as extreme as it was in the '90s," Mr. Weiner said.

"A lot of people are going for tech stocks, and we're seeing a lot of energy stocks too, like Chesapeake Energy."

Several contestants bet that the recession will get worse and made Family Dollar Stores Inc. one of their four picks.

Contestants had to select two stocks from the New York Stock Exchange and two from Nasdaq by Dec. 31, 2008, and divide an imaginary $40,000 evenly among them.

The top-performing portfolio, even if it is worth less than the original $40,000, wins.

The winner gets $200 and a trip to either Chicago, Toronto, or Tampa, courtesy of contest co-sponsor Central Travel of Toledo.

Second place gets $300, and third place gets $200.

After 2008's contest, in which only five portfolios out of 877 finished in the black, entrants for the 2009 game are employing a variety of unusual strategies.

For example, Mark Trace, of Walbridge, who admitted did "just horrible" last year, said he thinks stocks based on things the world needs to get economies rolling again may be a winning formula.

He chose Dryships Inc., a bulk carrier; Companhia Vale ADS, a Brazilian mining company; solar company JA Solar Holdings, and WSP Holdings, which makes tubes and other equipment for the oil industry.

Allen Hall and his son Ron are pitting their strategies against each other.

Ron Hall chose AeroVironment Inc., which makes unmanned planes used in warfare; First Solar; Caterpillar Inc., and Citigroup Inc. The idea key to his strategy: President-elect Barack Obama.

"With Caterpillar, I figure Obama will be coming up with highway construction jobs to get the economy going. And I also think he's going to do something to help solar energy," Mr. Hall said.

His father picked Intuitive Surgical; Australian mining company BHP Biliton, AeroVironment, and rail company Burlington Northern.

Intuitive Surgical he thinks will be a big gainer. The company has orders from China. "I own this stock," Mr. Hall said. "They have a great product."

-- Jon Chavez

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Copyright (c) 2009, The Blade, Toledo, Ohio

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