In this podcast, we review some of the Marketocracy tests we ran this year that didn't work.
Companies in trouble (via high levels of shorting - SEC's Regulation SHO, class action lawsuits), pump and dump candidates, and previous losers, were the tests which had the worst performance compared to S&P for 2005.
The lesson? Don't buy losers. Buy winners!
Some of this year's winners:
ET +93.28%
BZH +60..32%
TM +44.02%
KRB +36.01% (we sold after BAC bought them out)
DVN +35.5% (we took the profits)
Our biggest losers this year (we're bagholding these):
LXK -16.66% (we still like this toll bridge company because people are forced to buy print cartridges)
RCII -16.71% (we still like this company after they sold their unprofitable stores)
NEW -14.99% (we received some big dividends with NEW which cuts this loser way down. Plus, show listeners could have made +9.4% in a short period by buying this stock).
We sold one stock for a loss this year: RGF -3.0%, but we also received dividends, so the real loss was more like -1.0%.
