Time running out for Fortune stock picks for '08

In December of last year, Fortune magazine came out with its list of "The Best Stocks for 2008."

Supposedly, they were 10 stocks that "will thrive despite — or even benefit from — the troubles facing the markets next year."

Well, all I’ve got to say is they better hurry up and get to thriving.

Of the 10 stocks, only one, biotech Genentech (DNA), is up from the price it was back in December.

And some of the remaining nine, like General Electric (GE) and Electronic Arts (ERTS), have declined 50 percent or more.

Here’s a rundown of the stocks, with their price in December, followed by Friday’s closing price:
Annaly Capital Management (NLY), $17; $14.37
Berkshire Hathaway B shares (BRK-B), $4,750; $3,499
Dick’s Sporting Goods (DKS), $32; $12.61
Electronic Arts (ERTS), $55; $19.06
Genentech (DNA), $67; $76.60
General Electric (GE), $37; $17.17
Jacobs Engineering (JEC), $87; $44.77
Merrill Lynch (MER), $59; $13.22
Petrobras Energia (PZE), $11; $6.65
St. Joe (JOE), $28; $26.41

This is not to pick on Fortune. After all, everyone has had a pretty rough go of it this year in terms of stock-picking.

But it does teach a valuable lesson: Think twice before diving into recommendations carrying hyperbole. "The best," and "The hottest," and "Surefire" picks may turn out to be just the opposite.

A wise investment?

Investor’s Business Daily carried an article over the weekend taking a look at stocks and real estate investment trusts that focus entirely on senior living facilities.

"A senior-housing-focused business is not necessarily reliant on or impacted as much by things like GDP growth, consumer spending, employment growth and business travel," Keven
Lindeman, director of real estate services with SNL Financial, told the newspaper.

But the article cautioned that the senior living space was not totally without worry. At least for the time being, there seems to be a senior living center glut as declining home values have delayed some seniors from moving into such facilities.

One company that stands out, according to the article, is nursing home operator Ensign Group (ENSG), which has posted double-digit profit growth for four quarters.

Sleeping well on the sidelines

Once again, I am out of stocks and waiting for a clear sign that "up" is the new direction.
The Dow has posted five straight days of gains, but the volume, or number of shares trading hands, hasn’t been all that convincing.

I’m keeping my eye on some stocks, but mostly I’m just relaxing and not obsessing on the market. It’s much easier that way, but I know I’m going to turn around one day and see that a rally has begun anew.

Brian