Not to many analysts could have predicted the year that the markets had. 2013 treated investors with nice gains in various sectors throughout the Dow Industrial, S&P, and the NASDAQ. Sorry if you were in some basic material stocks or gold because those sectors did not do so hot. In review, the economy, measuring by the GDP, grew at a modest rate under 2% each quarter, well below the growth the economy had in 2012 (according to NY Times). The Fed was struggling to gauge when to taper throughout the year, and the recent plan of action they have didn't seem to effect the markets at all in 2013. Dow Industrial grew 28% in the year. S&P 500 gained 32% in 2013. The NASDAQ also gained a whopping 41% YTD. How can these markets put up these numbers in a slow growing economy. Well economic uncertainty seemed to actually help the markets gain momentum and hold it with the Fed's taper plan moved all the way back to the end of the year. Washington also might of chipped in with spending cuts and tax plans. Although uncertainty of growth in the economy was in question and is sure to be in question in 2014, the issue of continuing more job growth is sure to be a huge issue to tackle for politicians in congress.
As 2014 has much in store, here's how my Watch List from last year did.
Apple - I gave apple a C- short term and B long term. As I said, without the genius brains of Steve Jobs the continuing of updating their product line seems to be getting a little tiring. Carl Icahn wants to use CEO Cook as a puppet and is promoting his own agenda for what he thinks is best for Apple. Icahn wants to use Apple's gigantic cash flow to use while it is rumored that the Apple board may not want to go with Icahn's buy back ideas. Apple fell 18% in the short term (from January to June) more than my C- expectancy. Apple then gained 25% in the second half of the year rebounding from a bad first half it had. In the end YTD Apple gained 10%, a modest gain compared to the monster performance the NASDAQ had (41%). Until Apple comes out with new products, it will continue to be a questionable stock check out my Watch List 2014 to see what I think about Apple this year.
Cisco - I'll admit it, I might of given Cisco a generous rating last year ( B short term, A long term) and talked it up to much. Its marketing plan seemed to fail as its new product lines like their cloud technology did not seem to budge the stock too much. It gained 25% in the short term and YTD only gained 15%. Its second half of the year is what kicked investors, it was in red territory and fell leaving Cisco floating at its typical moving range for the past couple of months. I'll admit I over talked the stock but its dividend is always intriguing to look at and its fundamentals may attract investors since it may be undervalued.
Disney - Personally, I loved Disney this year and its returns should prove why I love it so much. Its silently up 55% YTD and is setting all time highs in the process. The real question is whether it can continue its great run. And for that you have to read my Watch List 2014. I gave Disney a C short term and B+ long term.
Citigroup - Citi had a good year and is up 34% YTD. I gave it a C- short term and A- long term. It was pretty steady in the short term and long term and so it was not to volatile which is a positive especially with a 34% gain for 2013. It would be nicer if Citigroup had a better dividend but banks should have a good 2014.
3D Systems - This has to be a stock that many investors got to look at. Its turning heads left and right, its the center piece of my portfolio and the center piece of its industry. Its growing from a mid cap stock to a large cap stock and is easily my stock of the year. It is up an unbelievable 173% YTD and its industry is still in its infancy and can continue to grow. If you think its a short opportunity...good luck.
Hormel Food Corp - Hormel Foods blew past my expectations of C+ short term and D+ long term. Hormel Food is up 47% and increased its increased production is the main reason of its success. Hormel food proved me wrong in 2013. The economy seemed to help this stock a lot and it was a great buy as one of the top food stocks to get in 2013.
Ford Motors - I recently added Ford to my portfolio as I believe it is recently undervalued, and one thing I've learned is if you want a safe slow moving stock, you found one. Its up 20% YTD and its new production line for 2014 should give it a positive outlook for this year. I gave it a C short term and B long term.
Express Scripts - I bragged about Express Scripts in the beginning of the year and it did go up 33% but I gave it a generous A long term and did not expect Walgreen to shift companies away from Express Scripts to Aon Hewitt Corporate Health Exchange. With this change and some dangers in private health exchanges Express Scripts only glided with the market instead of beating it.
Cliff Natural Resources - I really did not like the condition Cliff Natural Resources was in at the beginning of the 2013, I only mentioned it as a stock for the future, and the future was clearly not in 2013. I gave it a D- short term and C long term. Cliff Natural Resources is down 26% YTD and the beaten up material industry did not get any mercy in 2013. Although keep I gave it a horrible rating for the short term, its actually up 60% in the second half of 2013 and could be an intriguing stock to look at for a rebound in the next couple of years.
RPC Inc. - I gave RPC a A- long term and it produced. Up 47% YTD and beating most of the market. Once again the Obama administration made a statement by saying they want the US to be more energy dependent and RPC was happy to here that news. That news helped RPC gain in 2013 and expect the same from this company in 2014.
Goldman Sachs - Goldman Sachs is always a giant that is mentioned when talking about financials in the market. Its the upper echelon status gives it a lot of attention, both negative and positive. I gave Goldman Sachs an A- long term and it is up 41% YTD. Goldman Sachs is poised for a great 2014.
Gilead Sciences - With the Affordable Healthcare Act passed it was expected to be a big year for biotech. Biotech delivered, and in the middle of it was Gilead Sciences. Many successful mutual funds carried Gilead Sciences as its main position and no wonder why; it is up 108% YTD. I gave Gilead Sciences a B long term and it was easily even bigger. Now with the year over, check out my 2014 stock list to see what I think Gilead will do next year.
American Water Works - I gave American Water Works a C- long term and it was just that. The stock was okay, although compared to the rest of the market, its 15% YTD is still under the markets average. Water in general is an interesting trade and like real estate, land and water are limited and are a great long term investment, remember longggg term investment.
Macy's - Macy's I thought had a little more juice in it after its great run in 2012. But it continued its run and beat out my C+ long term rating. Macy's ended the year 43% YTD returns. This is in an economy that consumer income has only moderately increased, imagine how well it can do with a strong growing economy..
Madison Square Garden Company - Now the Knicks have been having a horrible year, but that hasn't stopped Madison Square Garden from squeezing some profits. Although it is up 32% YTD the NASDAQ was up 41% and so although it had some gains, it didn't keep up with the market. especially in the later ends of 2013. From July to December, it fell 3% and after a great first half of 2013 it just settled and didn't do too much to end the year. Long term I gave Madison Square Garden a B-.
At the end of the year, after I chose these stocks to look at and evaluate, the grades I gave them were how I think of them. an A grade means I like them a lot, B is I like them, C is okay, D is I don't like, and F is I really don't like. For me, Short term is anything 6 months and before while long term is usually a year or more. As you can see with the stocks I chose the percentages are intriguing and some of them have beaten the market remember to keep in mind how the market did compared to the stocks gains and check out my 2014 watch list for other stocks you should take a look at.
To Review My Picks that I had and the grade levels from when I wrote about these stocks last year visit this link to my blog post from last year.
http://alleywayinvesting.blogspot.com/2013/01/stock-watch-list-2013.html
Invest with Care. Not Responsible for Loses. Opinionated Investment Advice. NY Times Credit. Google Finance for percentage statistics. YTD = Year To Date. While the markets are closed on New Years Day, YTD numbers are usually to December 31st.
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