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!
Hello, stock fans, and welcome to the Final Four! Reaching this level is the goal of nearly every team when the season starts, but once you get here, you have to block out all of the hype and concentrate on winning the final two games. This is not the time for your players to get that star-struck, deer-in-the-headlights look on their faces. As a coach, I've been thankful every day for my confident and experienced superstars.
The "& Brothers"
Procter & Gamble
Portfolio Recovery Associates
RF Micro Devices
By contrast, Joey has one solid stock that won't get rattled in the bright lights: ExxonMobil. Yes, years of raising our gas prices and dealing with oil-spill lawsuits have made it impervious to criticism. But the rest of his companies have the potential to fall apart here, especially his three risky small caps.
Hansen Natural may have been the best-performing stock of the past 10 years, but we want the future best performers (see J&J and P&G).
Blackboard is similarly overextended with its recent 50% run-up.
And WWE? Don't you mean WWF? Oh, that's right . who can forget the headlines a few years ago, when a conservation group headlocked Vince McMahon's brand in a trademark dispute: "World Wildlife Fund Smacks Down WWF."
Joey's team will be entertaining to watch over the next several years, but probably not in a good way. I humbly suggest you steer away from his small and risky players and stick with my tried-and-true multidecade winners. A vote for me is a vote for market-beating balance!
Joseph Khattab's rebuttal
Once again, Rex fails to make a compelling case for Expedia and RF Micro Devices. Many consumers use Expedia to look up prices, but only 5% are actually making purchases. Competition is brutal from the airlines and other travel sites.
And what about RF Micro Devices? Being "smack-dab" in the middle of wireless is not reason enough to like the stock. Rex forgot to mention that RF Micro rarely makes a profit and has been free cash flow negative for two years.
My team, on the other hand, has no weak links and deserves to move on to the finals!
Blackboard is a Motley Fool Hidden Gems recommendation.
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. Joseph Khattab owns shares of Blackboard and WWE. The Motley Fool has a disclosure policy.
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