In 2012 I selected: Adams Golf (ADGF), Transocean (RIG), Ford Motor Company (F), and Darling International (DAR). You can see the original post here.
Here’s a look back at performance:
- Adams Golf (ADGF) – Bought out at a 67% premium to the opening price on January 1, the acquisition was announced on March 19th when Adidas stepped in to fold the company into its golf line. This was also a pick for 2011. Total performance for both years worked out to something like 130%. If I could find more companies like this one, I’d be a happy guy.
- Ford Motor Company (F) – This one was a late bloomer, having taken off in the first quarter, getting crushed in the second and third quarter, and then finishing the year strong, up 20.3% plus 2% in dividends. The improvements at Ford Motor Company are nothing short of a story worth putting in every MBA text book across the country. The Ford Focus is now the top-selling car in the world while macro trends pushed the F-series truck lineup to the best year in three years. An emphasis on common platforms is also driving profit margins. I just wish it had made its latest move a little faster.
- Transocean (RIG) – The best performing oil stock for 2012, this one disappointed with a 16.3% return. The company didn’t settle on their Macondo BP spill as I expected in 2012, although their liability was determined on January 4, 2013, after which the stock rose for a YTD gain in 2013 equal to….16%. Go figure. I still think Transocean is remarkably undervalued as one could sell its assets for more than its enterprise value. That made it somewhat of a net-net play for me, and its assets are still underperforming. Much more earnings upside here so long as oil stays relatively pricey.
- Darling International – Nothing like a high beta name to send you for a loop. This one ended the year up 20%, although at one time it was up more than 40%. My price target for this one was the lowest at $18 per share, which it reached, but there’s no selling in stock market competitions and the share price languished as the Fiscal Cliff stole investor’s concerns. Still, I’ll take a 20% return any year!
Total return: 31.25% (roughly–ain’t nobody got time for perfection)
S&P 500: 13.4% +/- 2% for dividends
I hope this random game is as kind to me in 2013! Follow this link to see my stock picks for 2013. If catalysts develop on my expected timeline this year, I think 2013 could be a great year.