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Jelly Roll Capital Equity Research |
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Market Analysis, Education, and Wall Street-Quality Stock Reports |
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Performance Review for the Top 25 |
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Every month or so, it is worthwhile to do a performance evaluation and see how the top stock picks have performed. For this update, we are going to look at all three lists so far - March, April, and May, and compare the returns from the top 25 to the S&P 500. All returns are calculated using the closing price on Friday, June 1st and the opening price on the day of release. Since the release of our March list, the S&P 500 has returned 10.13%. Still, the top 25 have handily outperformed this pace by more than five full percentage points. The heavy weighting to energy and materials stocks have helped that portfolio to beat the averages, with the best returning stock being copper miner Freeport McMoRan (FCX Stock Report), which is showing a 43% gain. Coal miner Alliance Resource (ARLP Stock Report) has also been a winner, up nearly 28%. Coincidentally, the worst performing stock from the March list is also an energy stock - embattled small-cap oil driller Vaalco (EGY) is down 15%. Still, the overall performance has been satisfactory so far. |
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The April list has to beat its S&P 500 benchmark having returned 8.13% since its release. This slightly more diverse set of companies topped the averages by 2.49% for the period measured, helped by a 30.7% gain from heavy infrastructure company Global Industries (GLBL) and a 32% gain from Peru Copper (PCU), which complemented gains in companies like industrial products maker Ceradyne (CRDN) and payday lender Advance America (AEA). The biggest weight on returns for the April list comes from the losses in real estate services company AMREP (AXR) as well as clothing retailer American Eagle (AEO), the latter of which was quite a surprise. |
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Although the monthly observations that are being made here are typically far from ideal for a fundamental, value-based model, the objective is consistent with the larger mission of the site - that is to say, to show that one need not try to time individual stocks to achieve a sufficiently high return. By buying a number of companies that show superior characteristics, just systematically purchasing a group of stocks will likely yield superior returns. Because the May list has only had one month to “prove itself,” the precise breakdown will not be shown until next month. The top 25 stocks for May did, however, more than double the S&P 500’s return for the month of 3.64%, with the average gain of 6.67% meaning the list outperformed in that one month by more than three full percentage points.
The site will be updated next around June 10th. Until then, check out the June Top 25. |