Stock Of The Month: IBM

Some 20 years ago, I told my Dad that he should buy IBM stock because "it was cheap". I didn't know anything about P/E or cash flows back then; I based my stock valuations from the prices listed in tiny print in the business section of the newspaper. IBM's price was less than almost all other companies, most of which I'd never even heard of! The stock is up over 2,000% since then.

I tell you this because 1) I wish I hadn't spent all my money on baseball cards, and 2) IBM has been around for a while, and will continue to be around for a while. They've led the U.S. Patent Office in patents granted for nearly two decades. If someone asked me "which company is going to bring the holodeck from science-fiction to reality?", IBM would top my short list. (Google and Microsoft would be the others.)  It is the best proxy for Information Technology - they don't do one thing great, but they do an awful lot of things very, very well.


International Business Machines (IBM)

Positives:
Safe, growing dividend (1.8%).
Fantastic return on equity (74%).
Warren Buffett likes it.

Negatives:
Huge market cap ($214B).
Net -$22B cash minus debt.


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 16.19%
Google (GOOG) 8.03%
Baidu (BIDU) 6.98%
Southern Copper (SCCO) 6.86%
Intuitive Surgical (ISRG) 5.70%
American Capital Agency (AGNC) 4.56%
Ace Limited (ACE) 4.52%
Annaly Capital Management (NLY) 3.95%
Amazon (AMZN) 3.04%
American Software (AMSWA) 3.02%
Tesla Motors (TSLA) 2.69%
Kinder Morgan Energy Partners (KMP) 2.60%
Apache (APA) 2.33%
Prospect Capital (PSEC) 2.27%
Blackstone (BX) 2.25%
McDonald's (MCD) 2.17%
Vodafone (VOD) 2.11%
Intel (INTC) 2.01%
Under Armour (UA) 1.88%
DuPont (DD) 1.81%
BreitBurn Energy Partners (BBEP) 1.65%
China Mobile (CHL) 1.57%
International Business Machines (IBM) 1.53%
ConocoPhillips (COP) 1.50%
Computer Programs and Systems (CPSI) 1.46%
F5 Networks (FFIV) 1.42%
American Express (AXP) 1.35%
Microsoft (MSFT) 1.28%
Wells Fargo (WFC) 1.26%
The Distressed (BEBE, GSOL, LZB, MSI, PCS, RVR) 1.10%

Stocks Of The Month: AXP, MSFT

It's been a busy trading day. Two more "Distressed" losers are gone - Electronic Arts (EA) and Jones Soda (JSDA); some more shares of Wells Fargo (WFC) were added to match the new addition American Express (AXP); but what I really want to write about is Microsoft (MSFT).

I'm not sure if the purchase of MSFT is a sign of investing maturation or a lack of imagination, but it is definitely one stock I never thought I'd want to own. I use the company's products almost every day - they leave me at something less than awestruck. The stock's "story has been told" - once upon a time, they achieved global dominance/monopolization and was briefly the largest company in the world by market capitalization. Then the genius-geek founder left, and the last decade has been dead money, settling in as a $260 billion has-been. Heck, in 2007 I even publicly lamented Microsoft's irrelevancy and lack of innovation.

So why MSFT, and why now? I guess I feel that a rising-from-the-ashes is due, similar to IBM circa 1993. Someday, somebody's going to replace current CEO Steve Ballmer, give the company some much-needed energy and focus, consolidate strengths and discard weaknesses, and use $62 billion in cash to fund its transformation. I don't know what exactly the new Microsoft and its killer product is going to look like, but something good must be out there beyond the desktop - IBM found life post-PC, after all.


Microsoft (MSFT)

Positives:
Massively cash-flow positive...plus $49B (cash minus debt).
3% dividend yield.

Negatives:
Steve Ballmer.
Needs to reinvent itself.


American Express (AXP)

Positives:
Historically-safe dividend (1.4%).
Warren Buffett likes it.

Negatives:
Flat revenue (3.3%) and profit (0.6%) growth.
Being a bank, owns a lot of debt ($59B).


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 19.05%
Google (GOOG) 8.07%
Baidu (BIDU) 7.04%
Southern Copper (SCCO) 6.48%
Intuitive Surgical (ISRG) 5.03%
American Capital Agency (AGNC) 4.73%
Annaly Capital Management (NLY) 4.16%
Ace Limited (ACE) 4.04%
Amazon (AMZN) 3.23%
American Software (AMSWA) 2.87%
Tesla Motors (TSLA) 2.53%
Kinder Morgan Energy Partners (KMP) 2.44%
Apache (APA) 2.42%
Prospect Capital (PSEC) 2.32%
McDonald's (MCD) 2.18%
Blackstone (BX) 2.14%
Vodafone (VOD) 2.07%
Intel (INTC) 2.06%
Under Armour (UA) 2.01%
DuPont (DD) 1.97%
BreitBurn Energy Partners (BBEP) 1.64%
F5 Networks (FFIV) 1.64%
Computer Programs and Systems (CPSI) 1.49%
China Mobile (CHL) 1.42%
ConocoPhillips (COP) 1.41%
American Express (AXP) 1.30%
Microsoft (MSFT) 1.26%
Wells Fargo (WFC) 1.26%
The Distressed (BEBE, GSOL, LZB, MSI, PCS, RBCN, RVR) 1.17%

Can't Truss It, Verse Two: BPT

In a development so inevitable that I actually predicted it would happen, BP Prudhoe Bay Royalty Trust (BPT) has imploded in the past week, thereby triggering a sell order.  As far as stock implosions go, this one wasn't too bad...a 12% capital gain (4.5% annualized) plus a ~10% dividend yield.  I am a "lesser sucker" I suppose, but still deserving of a Bart Simpson-at-the-chalkboard-like punishment:

I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.  I will never own a royalty trust stock again.

(I'll admit, I just copied and pasted the above.  Not quite the same.)

Also being sold are "Distressed" stocks Sunrise Senior Living (SRZ), which is up 80% from where I bought after being acquired by Health Care REIT (HCN); and ITT Educational Services (ESI), which has sunk 53%...because it is truly distressed.

The next edition of the Stock(s) of the Month will be ready by mid-September.

Stock Of The Month: CPSI

First, the usual housecleaning. Sold from "The Distressed" are irredeemable losers Acme Packet (APKT), Hansen Medical (HNSN), MAKO Surgical (MAKO), and Zipcar (ZIP)...the proceeds from which go towards the least-awful bank stock money can buy, and now a proud Distressed graduate, Wells Fargo (WFC). (It must be good, because Warren likes it.)

This month's stock is plainly named and in a semi-boring business (hospital IT), but pays a nice dividend...


Computer Programs and Systems (CPSI)

Positives:
Healthy ROA (32%), ROE (46%), and margins (22% operating, 15% profit).
Zero debt.
Steady, never-slashed 3.8% dividend yield.

Negatives:
Shrinking revenues (-6%) and meager earnings growth (+4%).


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 17.72%
Baidu (BIDU) 8.32%
Google (GOOG) 7.67%
Southern Copper (SCCO) 6.13%
Intuitive Surgical (ISRG) 5.20%
American Capital Agency (AGNC) 4.84%
Annaly Capital Management (NLY) 4.27%
Ace Limited (ACE) 3.96%
BP Prudhoe Bay Royalty Trust (BPT) 3.17%
American Software (AMSWA) 2.99%
Amazon (AMZN) 2.97%
Kinder Morgan Energy Partners (KMP) 2.53%
Tesla Motors (TSLA) 2.48%
Apache (APA) 2.47%
Intel (INTC) 2.43%
Prospect Capital (PSEC) 2.29%
Vodafone (VOD) 2.25%
McDonald's (MCD) 2.13%
Under Armour (UA) 2.01%
Blackstone (BX) 1.99%
DuPont (DD) 1.98%
BreitBurn Energy Partners (BBEP) 1.65%
China Mobile (CHL) 1.59%
The Distressed (BEBE, EA, ESI, GSOL, JSDA, LZB, MSI, PCS, RBCN, RVR, SRZ) 1.54%
F5 Networks (FFIV) 1.48%
ConocoPhillips (COP) 1.46%
Computer Programs and Systems (CPSI) 1.34%
Wells Fargo (WFC) 0.87%

Stocks Of The Month: CHL, COP

Every once in a while, I like to look at Warren Buffett's stock holdings at Berkshire Hathaway.

The one thing I admire most about his portfolio is that there are no surprises. Every stock makes sense in a perfectly logical, "this is a great stock; of course Warren Buffett would own it" sort of way.

I would like my own portfolio to be like that. No surprises...just great stocks.

With that in mind, I've dumped the two worst "Distressed" stocks so far, Savient Pharmaceuticals (SVNT) and Dendreon (DNDN) - you can expect more of that in the near future - and added a couple of quality dividend stocks:


China Mobile (CHL)

Positives:
4.1% dividend yield.
Exceptional $52B cash, $5B debt ratio (especially for a telecom...those numbers are typically reversed).

Negatives:
Mild revenue (8.8%) and profit (4.2%) growth.


ConocoPhillips (COP)

Positives:
Warren Buffett owns it.
5.2% dividend yield.
Very cheap 5.6 P/E ratio.

Negatives:
Lots of debt ($32B).
Negative revenue/earnings growth.


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 17.41%
Baidu (BIDU) 8.24%
Google (GOOG) 7.22%
Southern Copper (SCCO) 6.01%
Intuitive Surgical (ISRG) 5.88%
American Capital Agency (AGNC) 5.04%
Annaly Capital Management (NLY) 4.59%
Ace Limited (ACE) 4.25%
American Software (AMSWA) 3.32%
BP Prudhoe Bay Royalty Trust (BPT) 3.23%
Amazon (AMZN) 3.00%
Tesla Motors (TSLA) 2.59%
Intel (INTC) 2.57%
Kinder Morgan Energy Partners (KMP) 2.54%
Apache (APA) 2.51%
Prospect Capital (PSEC) 2.42%
McDonald's (MCD) 2.33%
Vodafone (VOD) 2.23%
The Distressed (APKT, BEBE, EA, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, WFC, ZIP) 2.19%
DuPont (DD) 2.06%
Blackstone (BX) 1.95%
Under Armour (UA) 1.95%
F5 Networks (FFIV) 1.70%
BreitBurn Energy Partners (BBEP) 1.61%
China Mobile (CHL) 1.47%
ConocoPhillips (COP) 1.46%

Can't Truss It: HGT

"Divided and sold, for liquor and the gold, smacked in the back" - Chuck D

I can now say that I've owned a stock that fell 34% in one single day. Hugoton Royalty Trust (HGT) has the undesirable characteristic of representing substantially less in future cash flows than market capitalization. In other words, its owners will be paid back much less in dividends before the trust's expiration date ("termination"/"liquidation"), than what they initially bought in stock.

This is not the first time I've been burned by a royalty trust. Dominion Resources Black Warrior Trust (DOM) and Great Northern Iron (GNI) had similar (albeit slower) valuation meltdowns. I can't help but reach the conclusion that all royalty trust stocks are ticking time-bombs which aren't worth the risk.

HGT will be sold at the market open tomorrow. BP Prudhoe Bay Royalty Trust (BPT) has a sell trigger set, should it fall at all...which I have no doubt it will.

Stocks Of The Month: AGNC, AMZN

I've taken the opportunity to lock in some short-term losses for a couple of loser stocks. Gone are Chimera Investment (CIM), which was down 25% from when I bought, and the extremely volatile Netflix (NFLX), down 57% even after dollar-cost averaging.

In their place, I've added to my positions in similar-yet-evidently-superior stocks: American Capital Agency (AGNC), which I've already deemed as better than Chimera once before; and Amazon (AMZN), a tech services company that unlike Netflix, has delighted both its customers and shareholders of late.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 16.71%
Baidu (BIDU) 8.71%
Google (GOOG) 7.10%
Southern Copper (SCCO) 6.35%
Intuitive Surgical (ISRG) 6.14%
American Capital Agency (AGNC) 4.47%
Ace Limited (ACE) 4.31%
Annaly Capital Management (NLY) 4.20%
BP Prudhoe Bay Royalty Trust (BPT) 3.40%
American Software (AMSWA) 3.15%
Amazon (AMZN) 3.00%
Tesla Motors (TSLA) 2.91%
Apache (APA) 2.81%
Intel (INTC) 2.72%
The Distressed (APKT, BEBE, DNDN, EA, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, SVNT, WFC, ZIP) 2.65%
Kinder Morgan Energy Partners (KMP) 2.58%
McDonald's (MCD) 2.41%
Prospect Capital (PSEC) 2.29%
DuPont (DD) 2.17%
Vodafone (VOD) 2.16%
F5 Networks (FFIV) 2.09%
Blackstone (BX) 2.04%
Hugoton Royalty Trust (HGT) 1.89%
Under Armour (UA) 1.80%
BreitBurn Energy Partners (BBEP) 1.69%

Stock Of The Month: TSLA

I'm going to repeat myself from when I first bought this stock back in August of last year - and also from the 2011 Stock Recap when I said "My pick for 2012's best stock"...

Tesla Motors (TSLA)

Positives:
Pure play on the long-term trend of automobiles transitioning from gasoline to electric power.
Super-cool cars (they manufacture and sell their own brand) and technology (they supply powertrains for Daimler and Toyota).

Negatives:
Horrible fundamentals across the board (negative earnings, margins, cash flows, etc., etc.)


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 18.06%
Baidu (BIDU) 9.58%
Google (GOOG) 7.50%
Southern Copper (SCCO) 5.78%
Intuitive Surgical (ISRG) 5.66%
Ace Limited (ACE) 4.07%
Annaly Capital Management (NLY) 4.03%
BP Prudhoe Bay Royalty Trust (BPT) 3.52%
American Software (AMSWA) 3.09%
American Capital Agency (AGNC) 3.02%
Tesla Motors (TSLA) 2.86%
Apache (APA) 2.68%
The Distressed (APKT, BEBE, DNDN, EA, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, SVNT, WFC, ZIP) 2.64%
Intel (INTC) 2.63%
Kinder Morgan Energy Partners (KMP) 2.55%
McDonald's (MCD) 2.46%
Prospect Capital (PSEC) 2.23%
Blackstone (BX) 2.21%
Vodafone (VOD) 2.10%
DuPont (DD) 2.09%
F5 Networks (FFIV) 1.93%
Hugoton Royalty Trust (HGT) 1.90%
Under Armour (UA) 1.73%
BreitBurn Energy Partners (BBEP) 1.63%
Amazon (AMZN) 1.48%
Chimera Investment (CIM) 1.12%
Netflix (NFLX) 0.92%

The Distressed 2012

This is year number four of "The Distressed", which has had mixed results in the past, but is too much fun to not continue the tradition. Here are the rules:

• 10 stocks, each 1/10th of what I usually invest per month.
• No .OB's, .PK's., or eminent bankruptcies.
• Generally speaking, I buy stocks I wouldn't otherwise buy.

Without further ado, I present to you the 2012 edition of "The Distressed":

Acme Packet (APKT, -58% from Apr. 2011): a slightly worse version of F5 Networks.
bebe stores (BEBE, -69% from Jul. 2005): small retailer, growing slowly.
Dendreon (DNDN, -73% from Apr. 2010): one of the choppiest charts in the history of the market. A hope to cure cancer.
Global Sources (GSOL, -82% from Oct. 2007): B2B in China? Yeah!
Hansen Medical (HNSN, -91% from Oct. 2007): a much crappier version of Intuitive Surgical.
MAKO Surgical (MAKO, -13% from Oct. 2011): OK, not very distressed...but a compliment to Hansen.
Rubicon Technology (RBCN, -64% from Jul. 2010): LED's and RFIC's. Decent fundamentals.
Savient Pharmaceuticals (SVNT, -93% from May 2008): hot stock tip from a friend...doesn't get any better than that.
Sunrise Senior Living (SRZ, -80% from Jun. 2007): in a demographically-promising business, but has been mismanaged for years.
Zipcar (ZIP, -52% from Apr. 2011): steady decline from IPO price. Interesting idea of car sharing vs. ownership (and maintenance).


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 15.07%
Baidu (BIDU) 9.52%
Google (GOOG) 7.50%
Southern Copper (SCCO) 6.47%
Intuitive Surgical (ISRG) 5.56%
Annaly Capital Management (NLY) 4.44%
Ace Limited (ACE) 4.32%
BP Prudhoe Bay Royalty Trust (BPT) 3.42%
Apache (APA) 3.26%
American Software (AMSWA) 3.26%
American Capital Agency (AGNC) 3.25%
The Distressed (APKT, BEBE, DNDN, ERTS, ESI, GSOL, HNSN, JSDA, LZB, MAKO, MSI, PCS, RBCN, RVR, SRZ, SVNT, WFC, ZIP) 2.98%
Kinder Morgan Energy Partners (KMP) 2.95%
Intel (INTC) 2.63%
McDonald's (MCD) 2.58%
Blackstone (BX) 2.46%
Prospect Capital (PSEC) 2.42%
Vodafone (VOD) 2.22%
Hugoton Royalty Trust (HGT) 2.20%
DuPont (DD) 2.11%
F5 Networks (FFIV) 2.09%
BreitBurn Energy Partners (BBEP) 1.77%
Under Armour (UA) 1.62%
Tesla Motors (TSLA) 1.62%
Amazon (AMZN) 1.52%
Chimera Investment (CIM) 1.23%
Netflix (NFLX) 1.18%

Stock Of The Month: AMZN

I wasn't planning on buying this stock this month, but the company just reported "disappointing" earnings - and the market put it on sale...


Amazon (AMZN)

Positives:
$85B market cap: roughly equal to VMware ($40B) + Target ($35B) + Netflix ($7B) + 2% of Apple (iPad and iTunes) ($5B)...plenty of upside here.
Massive revenues ($44B) and growth (44%).
Clean balance sheet ($6B cash, zero debt).

Negatives:
Expensive P/E (99 trailing, 70 forward).
Low margins (2% operating and profit).


Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 14.21%
Baidu (BIDU) 9.45%
Google (GOOG) 7.54%
Southern Copper (SCCO) 7.23%
Intuitive Surgical (ISRG) 5.53%
Annaly Capital Management (NLY) 4.72%
Ace Limited (ACE) 4.48%
American Software (AMSWA) 3.67%
BP Prudhoe Bay Royalty Trust (BPT) 3.44%
American Capital Agency (AGNC) 3.21%
Apache (APA) 3.13%
Kinder Morgan Energy Partners (KMP) 2.89%
Blackstone (BX) 2.72%
Intel (INTC) 2.71%
McDonald's (MCD) 2.67%
Prospect Capital (PSEC) 2.41%
Vodafone (VOD) 2.31%
DuPont (DD) 2.27%
Hugoton Royalty Trust (HGT) 2.25%
F5 Networks (FFIV) 2.10%
BreitBurn Energy Partners (BBEP) 1.82%
The Distressed (ERTS, ESI, JSDA, LZB, MSI, PCS, RVR, WFC) 1.59%
Under Armour (UA) 1.58%
Amazon (AMZN) 1.58%
Tesla Motors (TSLA) 1.53%
Chimera Investment (CIM) 1.35%
Netflix (NFLX) 1.24%

2011 Stock Recap: The Ongoing Concerns

I didn't do a very good job pruning my portfolio like I wanted to.

And it returned (took away?) -4.3% vs. 2.1% for the S&P 500.

2012 has to be better...right?

And now, let's look at all the stocks I've held going into this year, from worst to best - based solely on 2011's performance, while mostly ignoring any intra-year volatility:

Netflix (NFLX)
Bought: Jun @ $262.52, Sep @ $136.15
Year-closing price: $69.29 (-74%)
Classic "great product, lousy company". Needs to be bought out (hello, Amazon?).

Jones Soda (JSDA)
Year-opening price: $1.17
Year-closing price: $0.37 (-69%)
Last year's big winner fizzled out.

Southern Copper (SCCO)
Year-opening price: $48.74
Year-closing price: $30.18 (-38%)
In it for the dividend, and copper is a solid underlying asset.

Chimera Investment (CIM)
Bought: Jun @ $3.91
Year-closing price: $2.51 (-36%)
Risky real estate play.

MetroPCS (PCS)
Year-opening price: $12.63
Year-closing price: $8.68 (-31%)
Buyout coming soon?

Apache (APA)
Year-opening price: $119.23
Year-closing price: $90.58 (-24%)
Still the best-run oil and gas company out there, now for a discount price.

F5 Networks (FFIV)
Year-opening price: $130.16
Year-closing price: $106.12 (-19%)
Mini-Cisco is a long-term growth story.

Prospect Capital (PSEC)
Year-opening price: $10.80
Year-closing price: $9.29 (-14%)
One of these years, the capital losses won't exceed the dividend.

ITT Educational Services (ESI)
Bought: Feb @ $66.01
Year-closing price: $56.89 (-14%)
Still distressed, but has the fundamentals to turn around.

Under Armour (UA)
Bought: Jul @ $80.96
Year-closing price: $71.79 (-11%)
My history with clothes/shoes stocks not so good.

Wells Fargo (WFC)
Year-opening price: $30.99
Year-closing price: $27.56 (-11%)
Unfortunately, this is the best bank money can buy.

Annaly Capital Management (NLY)
Year-opening price: $17.92
Bought more: Apr @ $17.37
Year-closing price: $15.96 (-11%)
A tough year for real estate's safest play.

BP Prudhoe Bay Royalty Trust (BPT)
Year-opening price: $126.54
Year-closing price: $113.96 (-10%)
Dividend yield makes year 2011 a wash.

DuPont (DD)
Year-opening price: $49.88
Year-closing price: $45.78 (-8%)
Taking a breather after a fantastic 2010.

Hugoton Royalty Trust (HGT)
Year-opening price: $20.52
Year-closing price: $18.84 (-8%)
Again, dividend yield makes year 2011 a wash.

American Capital Agency (AGNC)
Bought: Jun @ $30.36, Oct @ $27.34
Year-closing price: $28.08 (-8%)
The "best" of the real estate stocks.

BreitBurn Energy Partners (BBEP)
Year-opening price: $20.14
Year-closing price: $19.07 (-5%)
Sleepy dividend stock.

Blackstone (BX)
Year-opening price: $14.15
Year-closing price: $14.01 (-1%)
Volatile year ends up back where it started.

Tesla Motors (TLSA)
Bought: Aug @ $28.69
Year-closing price: $28.56 (-0%)
My pick for 2012's best stock.

Vodafone (VOD)
Year-opening price: $26.44
Year-closing price: $28.03 (6%)
Verizon Wireless' better half.

Google (GOOG)
Year-opening price: $593.97
Bought more: Jul @ $597.50
Year-closing price: $645.90 (9%)
Android rolling full-speed ahead.

Ace Financial (ACE)
Year-opening price: $62.25
Year-closing price: $70.12 (13%)
Another pleasantly boring year in reinsurance.

Electronic Arts (EA)
Bought: Feb @ $18.27
Year-closing price: $20.60 (13%)
Beginning to find its footing after a few tough years.

Intel (INTC)
Year-opening price: $21.03
Year-closing price: $24.25 (15%)
Warren Buffett likes it, and so should you.

White River Capital (RVR)
Bought: Feb @ $17.00
Year-closing price: $20.25 (19%)
Thinly traded, small market cap, mystery stock.

Kinder Morgan Energy Partners (KMP)
Bought: Aug @ $70.46
Year-closing price: $84.95 (21%)
Safe dividend.

Baidu (BIDU)
Year-opening price: $96.53
Bought more: Mar @ $117.99, Jun @ $127.88, Jul @ $145.00
Year-closing price: $116.47 (21%)
Wild year, but the fundamentals for growth are still there.

Motorola Solutions (MSI)
Year-opening price: $37.30
Year-closing price: $46.29 (24%)
Sleepy tech stock. Should offer a dividend soon.

Apple (AAPL)
Year-opening price: $322.56
Year-closing price: $405.00 (26%)
R.I.P. Steve Jobs.

McDonald's (MCD)
Year-opening price: $76.76
Year-closing price: $100.33 (31%)
The world's cafeteria has another amazing year.

American Software (AMSWA)
Year-opening price: $6.77
Year-closing price: $9.45 (40%)
6% dividend yield is the cherry on top.

La-Z-Boy (LZB)
Bought: Feb @ $8.18
Year-closing price: $11.90 (45%)
A furniture turnaround story?

Intuitive Surgical (ISRG)
Year-opening price: $257.75
Bought more: Apr @ $371.50, Jul @ $357.24
Year-closing price: $463.01 (80%)
Sorta called this last year. A good year for the robots.

2011 Stock Recap: The Departed

One way to sum up my previous year investment-wise would be this: I didn't sell any stocks for a higher price in 2011, than I could have had in 2010. Not one.

Another way would be this: Every year, I mentally project what this "Departed" post will look like...short and sweet. Every year, it turns out to be way too long, with too many tickers of too many stocks that I never should have owned in the first place.

Maybe 2012 will be the year. Then again, I'm already looking forward to selecting this year's new additions to The Distressed.

Here's a look at all the stocks I've sold in the past year, from best to worst - based solely on 2011's performance, while mostly ignoring any intra-year volatility:

E*Trade (ETFC)
Year-opening price: $16.00
Sold: Jan @ $15.60 (-3%)
Year-closing price: $7.96 (-50%)
Barely made it to 2011; continued its downward spiral.

GigaMedia (GIGM)
Year-opening price: $1.48
Sold: Jan @ $1.40 (-5%)
Year-closing price: $0.83 (-44%)
Chinese penny stock not a smart gamble.

Borders (BGP)
Year-opening price: $0.90
Sold: Jan @ $0.84 (-7%)
Stock-closing price: $0.23 (-74%)
Got out before bankruptcy.

Energy Conversion Devices (ENER)
Year-opening price: $4.60
Sold: Jan @ $4.24 (-8%)
Year-closing price: $0.20 (-96%)
Solar stock not-so-brilliant.

Citigroup (C)
Year-opening price: $47.30
Sold: May @ $42.30 (-11%)
Year-closing price: $26.76 (-43%)
The worst bank money can buy.

Ford (F)
Year-opening price: $16.79
Sold: Mar @ $14.00 (-17%)
Year-closing price: $10.76 (-36%)
Sold for a nice multi-year profit, but not at the top.

China Nepstar Chain Drugstore (NPD)
Bought: Feb @ $4.00
Sold: May @ $3.26 (-19%)
Year-closing price: $1.51 (-62%)
Soon-to-be Chinese penny stock.

Cherokee (CHKE)
Year-opening price: $18.81
Sold: Aug @ $15.00 (-20%)
Year-closing price: $11.67 (-38%)
Declining dividend and stock price a bad combination.

Sketchers (SKX)
Bought: Feb @ $23.43
Sold: May @ $18.35 (-22%)
Year-closing price: $12.12 (-48%)
Follows K-Swiss as another poor footwear stock pick.

China Real Estate Information (CRIC)
Year-opening price: $9.60
Sold: Feb @ $7.30 (-24%)
Year-closing price: $4.05 (-58%)
Another Chinese stock failure.

Motorola Mobility (MMI)
Year-opening price: $30.24
Sold: Aug @ $22.66 (-25%)
Year-closing price: $38.80 (28%)
Wait, is there no negative sign next to that year-closing percentage?? I sold too early (i.e. before Google swooped in).

Frontline (FRO)
Year-opening price: $25.37
Sold: Jun @ $18.60 (-27%)
Year-closing price: $4.29 (-83%)
Declining dividend and stock price an even worse combination.

Cree (CREE)
Year-opening price: $65.89
Sold: Mar @ $48.00 (-27%)
Year-closing price: $22.04 (-67%)
LED business is tough.

American International Group (AIG)
Year-opening price: $57.62
Sold: Feb @ $40.00 (-31%)
Year-closing price: $23.20 (-60%)
Still difficult to valuate this financial house of cards.

Great Northern Iron (GNI)
Year-opening price: $143.00
Sold: Apr @ $95.56 (-33%)
Year-closing price: $110.25 (-23%)
Sold at the bottom.

Dominion Resources Black Warrior Trust (DOM)
Year-opening price: $15.45
Sold: Jul @ $9.91 (-36%)
Year-closing price: $7.99 (-48%)
As long-time readers know, was one of my favorite dividend stocks...couldn't ignore the capital losses though.

Nokia (NOK)
Year-opening price: $10.32
Sold: Jun @ $6.52 (-37%)
Year-closing price: $4.82 (-53%)
Hitching their wagon to Microsoft's star not working out so well.

STEC (STEC)
Bought: Feb @ $23.50
Sold: Aug @ $10.58 (-55%)
Year-closing price: $8.59 (-63%)
Not the next SanDisk.