The following article is part of The Motley Fool's "Stock Madness 2006," based loosely on the annual NCAA College Basketball Tournament, a.k.a. "March Madness." Throughout the competition, our writers and analysts will engage in head-to-head competition. You, dear readers, are the fans and referees - after you read these exciting duels, your votes will determine who moves on to the next round of play. The writer who survives the tournament will be our champion and most valuable "coach."
But, please, make no mistake -- "Stock Madness 2006" is a GAME!
First of all I'd like to thank you, the fans, for your great support in Round 1. Like any good coach, I know how important fan support is, and you honored my team with more votes than any other team in this tournament.
I think you're smart to get behind this starting five and its "twin towers" of Johnson & Johnson
If I want to exploit a weakness in Tim's lineup, I need look no further than Embraer
As for me, I'll stick with my rock-solid proven performers. Experience counts in these high-pressure tournaments. As Jeremy Siegel says, there's no doubt that over the long term, the tried and the true will beat the bold and the new every time.
Tim Beyers' rebuttal
Rex wants to isolate on Embraer? Color me thrilled. By my estimation, the jet maker's return on invested capital is a tad above 15%, while its cost of capital hovers near 11%. That's an impressive spread, and strongly suggests that further gains are to be had.
But don't be too surprised by the misjudgment. When Rex and I matched up in this contest last year, he argued that Audible would outpace Akamai. Sadly, the fans believed him, and left a double on the hardwood. Don't make the same mistake twice, Fool.
Akamai is a Motley Fool Rule Breakers selection, helping the portfolio achieve a 31% average return vs. just 7% for the S&P 500. Find out which other stocks are leading the way by asking us an all-access pass to the site. It's free for 30 days.
Rex Moore believes in his team so much that he owns shares in three of the members: Johnson & Johnson, Procter & Gamble, and Portfolio Recovery Associates. Fool contributor Tim Beyers owns shares of Akamai. You can find out what else is in Tim's portfolio by checking his Fool profile. Embraer is a Motley Fool Stock Advisor pick. Portfolio Recovery is a Motley Fool Hidden Gems pick. The Motley Fool has an ironclad disclosure policy.