Today, I end the year with the final five picks that will make up the 2015 Gad Winning Value Portfolio. These are ten securities that I believe are attractive enough to outperform the S&P 500 and Wilshire 5000 indices, respectively. Yesterday, I gave the first five names and today, the 2015 portfolio will consist of the following ten securities.
Bank of America (BAC)
Chesapeake Energy (CHK)
General Motors Class B Warrants (GM-WTB)
Whole Foods (WFM)
Kindred Biosciences (KIN)
Cheniere Energy (LNG)
Murphy Oil (MUR)
As usual, this portfolio follows no standard based on market cap, industry, or geography. All that matters is valuation, and the potential upside I see. The portfolio has a few energy names, as I believe even in a $50 to $60 per barrel oil environment, names like Chesapeake and Murphy will do well. Biotech Kindred marks the first time we have a biotech in the value portfolio. I even touch on technology through names like Sizmek and Travelzoo.
Something to note: I don't see value as stocks sporting low P/Es or P/B ratios. Those numbers can be useful, but harmful when relied upon too heavily. For example, I think Whole Foods is an extremely undervalued business despite a trailing P/E of 32. I think Sizmek is an easy double despite showing little to no accounting earnings today.
Over the coming weeks, as I typically do, I will dig deeper into these names for Real Money readers, although no name on this list hasn't been closely vetted already. Happy New Year!