January 3rd, 2011 
Category: 
I accepted the invitation to join a group of fellow bloggers in a friendly stock picking competition. Each blogger picks 4 stocks (or ETFs) they think will outperform in 2011. The blogger can pick equities from the Canadian and US stock markets. Dividends, if any, will be included in the final tally since they add to the final ROI.
Here are my 4 top stocks to buy in 2011
- SkyWest Energy (TSXV:SKW) Cardium Oil play
- Arcan Resources (TSXV:ARN) Swan Hills Reef Oil play
- Bowood Energy (TSXV:BWD) Emerging Alberta Bakken Oil play
- Reliable Energy (TSXV:REL) Bakken Oil play
I know what you’re thinking: “This guy just can’t spell diversification!” Yes, it’s true, I am just not able to spell that word simply because I only have time to follow this sector, this is what interests me and this is what I understand best.
If the world economy was to fall into a second recession, guess what? Your blue chips and whatever other <insert favorite color> chips you’re invested in will follow the general market DOWN. Investing in oil is investing in the world economy, it’s that simple until oil is replaced with a new abundant and cheap source of energy!
If the demand for energy remains stable in 2011, I believe these stocks will outperform my fellow blogger’s in the competition. Bowood Energy is the one that stands to have the most impact if the emerging South Alberta Bakken play is confirmed economic. The remaining 3 picks are low risk growth stories (in my opinion of course).
Of course, there is no guarantee that these stocks will outperform the competition. Remember that they will not be actively managed (bought and sold repeatedly depending on opportunities). It is simply a matter of buying on Jan 4th, 2011 and selling on December 30th, 2011.
Meet the competitors and their top picks:
| Rank | Site | YTD Return (%) |
| 1 | The Wild Investor | 0.00 |
| 2 | Where Does All My Money Go | 0.00 |
| 3 | Dividend Growth Investor | 0.00 |
| 4 | Beating The Index | 0.00 |
| 5 | My Traders Journal | 0.00 |
| 6 | Million Dollar Journey | 0.00 |
| 7 | Intelligent Speculator | 0.00 |
| 8 | The Financial Blogger | 0.00 |
| 9 | Money Smarts | 0.00 |
Please feel free to comment on my all Canadian Light Sweet Oil Team or add your own picks!
[...] BeatingTheIndex Comments (0) [...]
Ooh, can’t wait to see what happens at year end
Did you each buy the stocks you picked, or is it a hypothetical stock pick?
[...] Beating the Index [...]
[...] BeatingTheIndex [...]
@YT, That would be hypothetical stock picks
This reminds me of an episode of Corner Gas.
But seriously, I took a look at the picks of the other contestants, and my money is on your picks: all four venture stocks!! All you need to do is have just one of your picks become a three-fer and you will probably win. I don’t give the other guys a chance.
Anyway, good luck Mich.
@YT: If you read earlier posts, you’ll see that Mich has positions in REL and SKW. The other two, I’ve never heard of. So they are more than hypothetical despite what Mich claims.
My 4 picks for 2011 (also one company on NYSE):
http://www.groceryalerts.ca/best-four-stock-picks-2011
ARISE Technologies Corporation
RBC
Exchange Income Corporation
Unilever
We are counting dividends in the return?
[...] BeatingTheIndex [...]
Haha, I always love when you bring out that passion! Congrats on the invite; it will be cool to see how this progresses.
I like skw, arn and bwd a lot. I would switch out reliable for Valeura. Hopefully Rel can get equipment more easily in 2011. Bowood with legacy’s technical skill is much more likely to have drilling success in my opinion. Good luck with the contest and congrats on your 2010 results.
NLR
I have a friend who swears on REL… looks like you’re either going to hit some home runs or foul balls… good luck.
I like your picks. Willesden Green is the best cardium area and skywest controls lots of land and a key gas plant there, Arcans dual lateral well could be a major catalyst in 2011 and Bowood with Legacy’s technical skill should hopefully have some success. I would have picked Valeura over Reliable though. Turkey seems very exciting and Rel has had a terrible time operationally and the bakken has such horrific declines. But there Montana land is exciting and with a little luck they should be able to get more wells done. Good luck on the contest and congrats on an amazing 2010.
NLR
[...] BeatingTheIndex [...]
[...] Beating The Index [...]
You have shown your intellectuality by investing in oil and I’m waiting for the year end
Good luck for the year 2011.
Good luck on your picks, Mich, rooting for you.
Just for giggles, here’s 4 more.
Magellan Midstream (NYSE: MMP)
Hawthorne Gold (TSX.V: HGC)
Denison Mines (NYSE Amex: DNN)
Transmontaigne Partners (NYSE: TLP)
[...] Beating The Index [...]
@YT, PWD is right, I currently own or have owned these picks.
@Steve, we are counting divvies! Good luck with your picks.
@IIW, Got to remain true to my colors right?
@NLR2, Thanks and I totally agree with you on BWD, which is why I picked BWD instead of the others in the area. Valeura would fit just fine but the team would no longer be pure Canadian light sweet oil
@Doc, home runs I tell ya! The Bakken has a sexy allure that will bring out the premium in the price sooner or later.
@Shailander, Thanks
@101, I love that DNN. Uranium might just be in the beginning of its run!
Good luck!
I’m rooting for you!
Yes, yours are all ventures- they could be home runs, you never know! Especially if they were in a TFSA or something, a big home run + no capital gain= awesomeness.
Pretty cool how you guys worked together to set this up. Kinda like watching your favorite shows team up or have a crossover storyline. Who’s cuisine will reign supreme? Good Luck!
It would be nice to invest real money, put money where one’s mouth is
.
A minimum of $1,000 and have the contest open to everyone – like facebook that in the end allowed everyone to join
(now that everyone talks about it with the Goldman investment).
The winner will get a mug and bragging rights, the last 3 ones lots of books about investing (I am sure there will be sponsors for such a contest).
@YT, looking good with BWD up +15% on the first day of the year!
@Buck, a very oily cuisine will reign supreme! or so I hope
@cynical, actually I am currently holding or have recently held all of my picks. Wish I was holding some BWD right now! Never enough money to hold them all…
I also like your idea of getting a sponsor to the contest, we should look into that next year.
An all oil play! Very interesting! Buffet said a funny thing about diversification: Diversification may preserve wealth, but concentration builds wealth.
I’m rootin’ for ya!
@MoneyCone, concentration certainly has its upside potential but comes at a higher risk as well!
I take AVF, PEY, HNU and HUZ. That’s oil, NG and Silver. Easy win.
@Ray, with NG it’s going to be an easy lose IMO. Silver seems to have fallen out of favor with gold so far this year.
Good Luck!
Hey Mich,
Congrats on the great investment returns from last year. As for the contest, I think it’s going to be a bunch of “out there” picks that win this contest. It won’t be a portfolio of stocks that we deem “responsible” today, will it?
I have no clue what will happen, but it’s a fun contest for sure!
@Andrew, It’s a fun contest where the most you will gain is the right to brag as loudly as you can in the blogosphere!
My picks will win Andrew, none of the “out there”, just mine
I know you’re not big on ETFs but what are your thoughts on tracking a junior energy index like BMO’s Junior Oil ETF (ZJO)?
RockO, Nothing wrong with ETFs, in fact all of my RRSP investments are in indexed funds.
I am not familiar with all the holdings in ZJO, however, this is the easy way to get the oil exposure and the geographic diversification without putting the time to research and to follow each company closely. MER is also great at 0.55%.
I like all your picks except REL, I think I would go with DES, this could be a banner year for them.
@Ken, I didn’t find much information on DES’s website, how much do their wells cost? what’s their EUR? what’s the recycle ratio?
I still prefer REL in that regards as I can model my projections accurately.
[...] 4 Stocks To Buy In 2011 – Mitch from Beating The Index shares some of his stock picking wisdom [...]
Just so we can compare notes as the year goes on…
http://myownadvisor.blogspot.com/2011/01/2011-stock-selection-contest-courtesy.html
Mark
Welcome aboard Mark!
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