4 Stocks That Make Me Thankful

By Rick Aristotle Munarriz | More Articles
November 24, 2009 | Comments (16)

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9

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I hope it goes without saying that I love my family, I'm fond of my friends, and I'm grateful for everything I have in life. But this is an investing site, and there are also a few equities I'd like to tip my hat to as we approach the Thanksgiving holiday. Some I own, and others have taught me valuable lessons, but I'm thankful for them all.

As I do at the table, please allow me to dig right in.

Disney (NYSE: DIS)
You never forget your first stock. I was in the process of switching majors, from journalism to business, when my college girlfriend gave me a single share of Disney. My interest in the stock market was distant at best, but she knew how important Disney was in my life, since I came from a family that made monthly treks to Walt Disney World.

Checking the stock's close as an occasional novelty and diving into the annual reports began to whet my appetite for more than just the business and M.B.A. courses I would eventually take. That one small gift turned me into an investor.

I maintain a "buy and hold" strategy here, since I still own the stock and married the girl.

Netflix (Nasdaq: NFLX)
I've been a Netflix shareholder and subscriber since 2002. Beyond making back my initial investment several times over, Netflix taught me that changing your mind can be lucrative.

I bashed the DVD-rental specialist shortly after its 2002 springtime IPO. What I saw was a company for which churn was too high and the barriers to entry too low. It struck me as just a glorified mail-order business in a niche that seemed better suited for fulfillment immediacy.

My initial bearishness was vindicated, as Wal-Mart (NYSE: WMT) and Blockbuster (NYSE: BBI) quickly jumped into the market, while Amazon.com (Nasdaq: AMZN) eventually followed suit abroad.

I changed my tune as subsequent selloffs made me re-evaluate the company from a contrarian's perspective. I bought in several months later, after kicking the tires for myself. Despite having to wait for rentals and dealing with weak availability on new issues, I could see how this service would become indispensible to couch potatoes. Online streaming is now the icing on the cake.

Sirius XM Radio (Nasdaq: SIRI)
I don't own shares of the satellite-radio giant, but I may as well thank it for a welcome lesson in humility.

I figured Sirius XM would once again be shedding subscribers sequentially in its latest quarter. I had correctly predicted sequential dips in each of the two previous quarters, and thought I had a pretty good read on the company. More pain, I figured.

Well, I was wrong. Sirius XM surprised investors by posting breakeven results and closing out its third quarter with 102,295 more subscribers than it started with. It still has a way to go before it catches up with last year's subscriber peak, but the company is on firmer financial footing these days and milking more out of every subscriber.

Crocs (Nasdaq: CROX)
I didn't buy Crocs at the top. I didn't sell it at the bottom. However, I still lost a decent chunk of change in the middle.

I should have listened when fellow Fools warned of inventory buildups, warehouse-club dumping, and other telltale signs that the company's cozy yet funky shoes were slipping in popularity.

I haven't completely turned my back on Crocs. I was encouraged by its latest quarterly report, as the company posted a profit, with foreign sales offsetting stateside weakness. However, I'm going to just root the company on as a spectator this time.

It's cheaper that way.

What stocks are you thankful for this year? Share your holiday love in the comment box below.

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Amazon.com, Walt Disney, and Netflix are Motley Fool Stock Advisor picks. Walt Disney and Wal-Mart are Motley Fool Inside Value recommendations. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz is a subscriber to both Sirius and XM, an owner of two pairs of Crocs, and a shareholder in Disney and Netflix. He is also a member of the Rule Breakers analytical team, seeking out the next great growth stock early in its defiance. The Fool has a disclosure policy, and we're all grateful for that.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 24, 2009, at 2:34 PM, djkumquat wrote:

    BTE, SI, and TC

  • Report this Comment On November 24, 2009, at 2:34 PM, djkumquat wrote:

    BTE, SI, and TC

  • Report this Comment On November 24, 2009, at 2:44 PM, crankly09 wrote:

    Very humble apology for your 500,000 negative posts accepted.

    LONG SIRI

  • Report this Comment On November 24, 2009, at 2:48 PM, PhulishMortal wrote:

    JOSB -- It is down from its peak, but it has still been a 9-bagger for me. If it drops a bit more, I hope to expand what little holdings I have. More importantly, it was my first stock purchase, and thus my introduction to personal investing.

  • Report this Comment On November 24, 2009, at 3:25 PM, RAF22 wrote:

    Gracious comments about Sirius XM, Rick - Now it's time to really come on board. It's a lot more than merely "milking more out of every subscriber", as you suggest above. This company has really turned the corner and now it is about an increasing stream of free cash flow into the future. The business model is performing well on all fronts and the universe for penetration is expanding all the time, given new developments (apps and devices) in the internet/wireless arenas. The company has solid relationships with virtually every significant automobile manufacturer in the U.S. and will stand to benefit significantly as the aging U.S. fleet of cars is replaced and upgraded. Satellite radio is the wave of the future, and clearly "best of breed" in the industry. The company can perform beautifully into the future - either as a standalone or in partnership with one of several other "heavyweights" in the media. In sum - the outlook is exceedingly positive for Sirius XM and Motley Fool, under your shifting recognition of this value, will benefit from being on the proper side of this trade.

  • Report this Comment On November 24, 2009, at 4:29 PM, dedmunds wrote:

    SIRI CEO MEL SAID

    NO REVERSE SPLIT!!!

    BUY BUY BUY !!!!

  • Report this Comment On November 24, 2009, at 4:30 PM, dedmunds wrote:

    SIRI CEO MEL SAID

    NO REVERSE SPLIT!!!

    BUY BUY BUY !!!!

  • Report this Comment On November 24, 2009, at 5:58 PM, dedmunds wrote:

    SIRI,

    The bottom line:

    Cash flow is up enormously, The company recently projected cash flow (adjusted for unusual charges) of more than $400 million this year, compared with a loss of $136 million in 2008.

  • Report this Comment On November 24, 2009, at 10:16 PM, dstnewman wrote:

    Rick,

    Though my thoughts may not be echoed by many around here, I would also like to give you thanks for being one of the few media people that can actually provide a more or less balanced look at Sirius XM. Even though there are some hardcore people here who can't see a 10 positive comments behind one negative one, there are those that see it, and I thank you for it.

    Now, you need to give some of your fellow writers Sirius XM subscriptions for Christmas... once they listen, they may switch over to the dark side.=)

    Hope you can make our Q4 CC live blog... it should be GREAT! (Earnings AND coverage, that is!)

    David "Newman" Phillips

    www.satwaves.com

    newman@satwaves.com

  • Report this Comment On November 25, 2009, at 7:23 AM, RAF22 wrote:

    Two followup thoughts:

    There is a great interview of John Malone with David Faber - available on CNBC.com - runs 54 minutes and is absolute must viewing for all who are interested in Sirius XM and the future of this wireless/internet and satellite arena. Very favorable comments about Sirius XM by Malone and a real tutorial by the master. Search CNBC.com Malone video.

    Also - Just saw another spot on CNBC - the highly effective new ad by Sirius XM, featuring Elvis, Michael Jordan, Richard Pryor, and Howard Stern - Theme: They changed music, sports, comedy, and radio - and now Sirius XM is changing the way you listen to radio.

    Last week, the same type ad ran on two full pages in the center of the first section of the New York Times. There is no doubt that this is a real step up in he horsepower of Sirius XM's marketing and should really put to rest any lingering doubts about the trajectory of this company.

  • Report this Comment On November 25, 2009, at 8:14 AM, Fredlee009 wrote:

    Newman, please. You are disgraceful in your words toward this hack journalist. I will be impressed with Rick's writing when he stops writing. Using SIRI to generate hits does not impress me. Hes been a closet bear of this company for a very long time now, and his takes on the company are usually terrible. He has a good "feel" for the company. No he doesnt. He has a crap feel. Hes been wrong on every turn, and throws them a bone every now and then so people like you will praise them. Just because he stroked you on your sub guess, you dont need to return the favor.

    For the only place for true accurate information on all stocks and trades, including SIRI,

    visit kingofalltrades.com.

  • Report this Comment On November 25, 2009, at 10:20 AM, goforitrandy wrote:

    Rick, who do you think you're fooling... Your constant negative coments on SIRI all year long will not be forgotten... This company has been bashed, kicked in the teeth all year long by you and Thanks Giving rolls around and all the sudden you want a place at the SIRIUS table... You have contributed to SIRIUS losses at times when SIRI should have taken off like a rocket... Why don't you admit that you were part of a Smear Campaign to drive SIRI stock price down and maybe we will start to believe your story... The headlines that you used this year to create FEAR and panic over SIRIUS was unrelenting all year long.

    Of coarse you were WRONG, and we all know it... The stock price for SIRI should be over $1 by now and you are part of the reason that it's not by spreading your FEAR based B.S. about SIRIUS xm.

    Just admit that you were in cahoots with Jim Cramer and other SIRI bashers and we will forgive you... If you truely were wrong and you believe that, than come clean on the stock price manipulation that you and your buddies over at thestreet.com have been involved in all year long... That will give you the web hits that you truely have been seeking all along... Tell the world about the real story behind the SIRI stock manipulation that you had a hand in and we will start believing in you again... But until than, you are gonna have to come up with a ton of positive articles on SIRIUS before we will believe a word of what you print.

    The ball is in your court RICK, what are you gonna DO...

  • Report this Comment On November 27, 2009, at 10:57 AM, cantbefoolish wrote:

    I'm thankful to have idiots like you and your colleagues, sell me shares of SIRI at .06. I'm also thankful for Howard Stern, Mel Karmazin, and John Mallone.

  • Report this Comment On November 27, 2009, at 11:21 AM, cantbefoolish wrote:

    I'm thankful for Howard Stern, Mel Karmazin, and John Mallone. I'm thankful for fools like you and your colleagues, who sell me their SIRI shares at .06.

  • Report this Comment On November 27, 2009, at 12:35 PM, McNabRanch wrote:

    I sold my Siri and took the cash....50K .. .37 to .69-.75...mainly because I'm not convinced Mel/Malone etal aren't crooks that could care less about share holders....Sat Rad is the future allright, but what company?

  • Report this Comment On November 30, 2009, at 4:04 PM, SIRIDoom wrote:

    I just love SIRI.

    Waiting for the Rev-Split is like waiting for a thief to get your family silver and the TV...

    Come on Mel CarmaCROOK, stop ripping us off. You and that dam deal you made with Goldman Sachs has cost us too much. CarmaCrook is letting Goldman Sachs control SIRI stock. How much money do these crooks need? Wait, I know, I all it...

    SIRI will sit and spin util the rev-split. Get a new religion...

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