2011 Stock Performance – A Year in Review

With the year ending I decided to post how well the stocks that I announced performed this year. Here are my results 2011. You could have definitely outperformed the market if you followed these picks.

1. EERG – I liked this junior oil stock back in April at $0.35. It was interesting to me because the merger would have pushed the share price higher. It was a little speculative, but it still paid off. Since the announcement the stock rose as high as $0.45. If you sold at the high point you would have had a return of 28.5%. It has also merged with American Eagle Energy, with the new symbol for the two companies being EERGD. The new stock currently trades at $1.35.

2. DCHAF/DSM – I picked this rare metal holding company stock back in May at $0.49. I liked it because it was essentially a mining company except it purchased rare earth metals instead of mining for them. With China announcing that it was going to decrease the amount of rare earth metals it exported (thus increasing the price of rare earth metals), DCHAF/DSM was a no brainer. The stock rose as high as $1.24. If you sold at the peak you would have a return of 153%! It currently trades at $0.53. With assets worth $1.47 a share, the stock is still a great buy at this price.

3. CTXIF – I announced this textile manufacturing stock back in July at $2.20. Since that time the stock rose to a high of $2.60, up 18%. I still love this company and expect it to do very well in the New Year. The stock’s current price is $2.17. It’s still a great buy, especially considering the Net Asset Value per share is $6.11, a conservative liquidating value of approximately $4.06 per share, and net working capital of almost $32 million. The company is also sitting on just over $5 million in cash, or $0.72 per share in cash. The company is continuing to grow very rapidly and since 2010 has acquired an additional yarn spinning factory to include in its operations. I strongly recommend everyone to look into CTXIF, as the company and its management are still grossly undervalued. Look for this stock to perform well as the company continues to expand. For further information check my other posts on CTXIF.

So 2011 was a good year, even with the market downturns which most people suffered from. Feel free to post some of your success stories and share how you did in 2011!

Justin Gruenthaler

Not trying to bash, but want you to learn for future ideas.

EERG - The only reason the stock trades at $1.35 is because it did a reverse split. The 1 to 4.5 split at 1.35 equates to $.30 a share pre-split, so the stock hasn't done much.

DCHAF - Was a pump and dump

CTXIF - has no volume and would be very hard to trade. The problem about this company is its one of those Chinese stocks people are scared of. If they really make as much money as they claim and want to improve their stock price for owners, they ought to start offering a dividend. Until then the lack of volume will most likely continue because no one knows if they are legit or not.

If you pick 5 random stocks, buy 500 shares of each Monday, then sell at the high point, I guarantee you will make money this year.

Here - GE, F, FAZ, VZ, and MRO

I never said EERG climbed as high as $1.35. I was simply informing what the new merged stock trades at. But I do see your point.

As for DCHAF, I would have to disagree with the pump and dump. They announce the same amount of news now as they did before. If you could explain a bit more about your reasoning for thinking it is a pump and dump, I would appreciate that.

I agree with everything you said about CYXIF. It does have no volume, and they should start paying a dividend (even a small one). That being said, there is still a large upside for this stock.

DCHAF - Just because they still announce news doesn't mean this stock wasn't hyped heavily by groups of traders front running it; causing momentum to bring more buyers to carry it higher. Although not a direct p&d I did find a few promoters who were on this in Canada last summer as well. As you know the primary shares trade on the TSX. DCHAF just mimics what those are doing. Notice the volume on the chart last summer. I'm sorry, but since they continue to have the same amount of news while the stock is still sliding the lower, the only reasonable explanation for the spike last summer is an awareness campaign by a few groups who thought they could pump it based on the "undervalued" characteristic you and others see in this. The problem of why it doesn't hold up at those levels is because there really is no way to prove what this company has or doesn't have. If your looking for a good rare earth stock, check out REE or MCP. But in reality rare earth demand has fallen since so many have tried to flood the market over the past 2 years with whatever they could get there hands on. A good thing for high tech suppliers who use some of the metals, but bad for all companies who have found rare earth metals to sell.