CNBC Million Dollar Portfolio Challenge

Shifting Strategies

Week 1 saw me enjoying an “aggressively conservative” strategy where I invested in a lot of stocks. I beat the market and 91% of the other participants in the contest. I was hoping to continue to do this in the competition as a way to practice and get myself interested in the stock market. However, I think I’ll spice it up a little bit by putting a little gamble into my personal picks. First, for Monday I went diving around Google Finance and found all of the BioTech stocks under the 12 dollar mark but with the necessary $500 million market capitalization. Here are those stocks: BSX, SVNT, MLNM, ANPI, INCY, QLT, HTI, EXEL, CVTX, ISIS, CRME, LGND and AOB.

For Monday there are two stocks which will release earnings report after the market close that are stocks eligible for the challenge and which might make good gambles: ENZ, XXIA

The most popular stocks in the competition have been: NEW, CMGI, REV, SIRI, CNXT, FMT, KRY, CHTR, LVLT and GSS

Here are my picks:

XXIA

A tech stock which will announce earnings on Monday after the close, a good report will make for huge gains over the week.

ANPI

I love this stock. It’s a bio-tech in the middle of a transition with some new blood after being beaten mercilessly the last few months. It’s basically at its 52 week low and I think this stock could jump at anytime with any bit of good news or recovery. I’m putting about 20% of my portfolio on the line with this pick.

CVTX

Another battered and beaten bio-tech, it’s near its 52 week low and it’s another pick I like. It’s quite a gamble but the company has one drug on the market and two more in trials, any bit of good news on their new drugs will make this stock a huge winner.

CHTR

It’s tougher to rationalize this pick but Charter, the 4th largest cable company in the US, is probably a good pick for this contest. It’s got a low buy in and it’s a company which has at least stayed afloat despite sever setbacks.

LVLT

This is one of the more popular stocks in the contest and right now some late night pundits (actual professionals) see this stock as having the potential to open high on Monday. I’ve already purchased this stock but if it has any kind of movement it might make sense to get some more.

STEI

They announce earnings on Tuesday this week. It’s in the right business, they handle dead people. Funeral services, grave plots, cremation facilities etc. Everyone dies and that might make this a (insert death pun here) pick.

PALM

Based only on some rumors.

CNET

I like this stock for a few reasons; it’s near its 52 week low, it just got back into compliance with Nasdaq stock listing requirements and there has been absolutely no substantial news on the company recently, that I could find. I’m from the “no news is good news” school of thought and I think this stock could jump from its present low if it even gets a little attention from investors or CNET has some good news. It’s another online/dotcom type stock.

I like Biotechs in this challenge because at anytime a biotech stock could get good news from the FDA, research trails or just from performance of recently released drugs. Anything under 10 bucks with a positive P/E ratio near its 52 week low is a great stock for gambling. Just not investing. Here’s to a reckless week of bad decisions.