With the 2009 stock picking competition over and done with, the same group of bloggers wanted try it  again in 2010.  As my last years result was mediocre relative to the market, I’ll still take the 20% that I gained.  This years picks will be along the same lines, but perhaps a little more aggressive.

What do I expect from the market in 2010?  I’m still waiting for that pullback, but I’m not so sure that we’ll see a test of the March 2009 lows.   Having said that, we may see some gain in the TSX in 2010, but I doubt that it will be anywhere close to the 30% returns of 2009.

My Top 4 Stock Picks for 2010

  1. Hanwei Energy (HE.TO) – This Chinese company provides products and services for the oil pipeline transportation, wind and coal energy industries.  Even though they have been oversold, they maintain a strong balance sheet.  They currently trade at less than half their book value, carry no long term debt, and have $0.28/share cash on their balance sheets.  Trading price as of Dec 31, 2009: $0.82.
  2. Manulife Financial (MFC.TO) – Most of you have probably heard of Manulife Financial as they are the largest insurance company in Canada (in terms of market cap).  I believe that Manulife has been oversold but hopefully return to strength in 2010. Trading price as of Dec 31, 2009: $19.33.
  3. Cenovus Energy (CVE.TO) – I picked Cenovus as my oil play.  Never heard of them?  Neither did I until I looked up the constituents of the energy index.  Encana recently split into two companies; ECA is now a natural gas company while all the oil and gas assets have gone to CVE. Trading price as of Dec 31, 2009: $26.50.
  4. QLT Inc (QLT.TO) – This is a riskier play of the batch as I picked them solely on their financial statements.  QLT is a pharmaceutical company that creates and commercializes eye treatments.  They trade below their book value, have no long term debt, and carry $3.81/share in cash on their balance sheet.  Trading price as of Dec 31, 2009: $5.23

Note that I own some of the stocks listed above and they are not recommendations to buy.

Here are some stock picks from other bloggers:

What are your favorite stocks for 2010?

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FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
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Lee
11 years ago

Frugal,

I had no idea Hanwei’s management could let down shareholders as much as they did. I have sold half my position, and have lost almost all faith in management.

I am curious to hear your take on the situation?

Lee

Harvey
11 years ago

Are you sticking with Hanwei? It is down to .43 since you picked at .84

omomo
11 years ago

Hi Financial cent,

I am new to DRIP. What does it mean to run synthetic DRIP? I decided to just leave my stocks and not get certificate for them. I’m not sure if this will have an adverse effect for me to DRIP those stocks.

-O

1stmilliondollar.net
11 years ago

FrugalTrader, I just setup a web page containing live result of this contest. The address is http://1stmilliondollar.net/contest/

The page is linked to Google Finance; so it shows “almost real-time” result of who’s leading year-to-date. Hope this is useful. :)

Financial Cents
11 years ago

omomo,

Seems very high, as TD Waterhouse charges $50+GST for each stock certificate, but I know other discount brokerages can be high…so maybe $300 is accurate for Questrade (sadly). I wouldn’t pay it. Run your synthetic DRIP instead.

omomo
11 years ago

Hi all,

Frugal, thanks for the post. I just brought some stocks to DRIP via Questrade and requested that they get certificated…was told the fee for that is $300. Is this correct? With that type of fee it will end up costing $3600 for 12 stocks I bought.

Tasamy
11 years ago

ATK, HLO, HGO, IFR

Jason
11 years ago

Hi all:

Just signed up for Questrade (MDJ referred) and I’m using the webtrader platform. Simple and effective for my needs. In my twenties, new to investing.

I’m wondering does anyone know how to list ALL companies on the TSX or other exchanges. I would like to buy a few penny stocks but how do I find them?

-J

cashback cards
11 years ago

Wow any stock under a $1 seems to scare me, but I do believe that the energy/oil will be a great play for 2010. Great information! Maybe you could expand and really take a blog post for each company giving them a solid full review needed to explain your picks.

Got any others to check out or keep our eyes on?