Note: All data, statistics, from all contests (2017+) are store on my website www.EverythingEven.com
These days, it seems a lot of people are invested in anything digital and the rule of thumb must be, if its tangible, don't touch it! At some point however, you'd think that shift in thinking would change. To me, there is nothing better than holding a piece of gold in your hand especially when you know that its all yours! But as it stands right now, if you are not investing in blockchain technologies, crypto-currencies, artificial intelligence or software in some aspect, then you are most likely like me, and you are currently losing money. Just look at how everything is performing except gold related stocks.
Before we start, our sponsors Mammoth Resources $MTH should have drill results out in the next few weeks, so put them on your radar. I have high hopes for them and my fingers are crossed! Exploits Discovery $NFLD has recently commenced a drill program on their schooner property and Slave Lake Zinc $SLZ has expanded their property. Remember, these guys help keep this going so please subscribe to their channels or at least check them out.
In December of 2020, we had 2,161 CEO.ca users join the 2021 #StockPickingContest and between them all they chose 1,155 different companies. The rules were more less simple; choose 3 companies, whomever has the highest average at the end of the year wins. You would have thought there would be more contestants in the green considering how well the markets have performed in the first image above.
It appears that CEO.ca contestants are not good stock pickers. 54% or 1,169 contestants (myself included) are currently lower than we started at the beginning of the year. Yes, some people swing for the fences with their picks but others, including myself, genuinely own the stocks we pick in the contest. Comparing this to previous years, we are still doing better than 2018 and 2019, but last year was an anomaly that will be hard to beat.
Last year was amazing for everyone. This year however, appears to be a reversion back to the mean.
So why are CEO.ca contestants such poor stock pickers on average? I believe the reason is the large number of people following overly marketed companies. It was this marketing that brought their attention to it in the first place so it makes sense. And that is why I feel it is important that newbie stock pickers see what happens (more times than not) to companies that have super exciting stories. These stories are equivalent to bed time stories but the reality is, 10 months later, 13 of the 20 most picked companies are below water. And most are not just slightly below surface, these babies have sunk. Be warned to those who choose to catch a falling knife.
What brings us to these high risk/high rewards stocks in the first place is the hopes and dreams of catching a real 10-bagger story. But looking at the top 25 companies that have performed this year we can see that only two of them ($INTL and $CMC) have had any noticeable amount of people choosing them.
The reality is, and I am sorry to say this but 'it is really hard to pick good stocks.'
Ironically, it is very easy to pick quality companies! In fact, it is actually quite easy to find companies with huge potential, excellent management, in favor assets, and a tight share structure. The problem is, those qualities do not necessarily equate to huge returns. And that doesn't seem to make much sense. But remember, things don't need to make sense. It kinda all depends on whose marketing, how much are they spending on that marketing and how well it is working. The markets will do whatever the heck it wants to do, and no matter what stock you own, there are always people who own it a heck of a lot cheaper than you, and they are just dying to unload their position to the next would-be buyer who has been driven by hopes and dreams and convinced themselves the story they were told makes sense.
But what do I know?
I mean seriously, you all know me by now. I am just a slacker who works at the airport hehe. I have a degree in physics but I hold no pieces of paper in finance. I just run these contests and enjoy looking at the statistics. For real stock advice, you owe it to yourself to not take my word on anything (as this is all for fun anyway) and to speak with a financial advisor. Stay safe!
Thank you very much and please follow me on twitter:
https://twitter.com/EvenPrime43
and follow me on ceo.ca/@evenprime
Your friend,
Evenprime
Disclosure: The author, @Evenprime owns MTH.V, & NFLD.CN shares at the time of publishing and may choose to buy or sell at any time without notice. @Evenprime has been compensated for marketing services by Mammoth Resources Corp, Exploits Discovery Corp, and Slave Lake Zinc, as they are a site sponsor of the #StockPickingContest hosted at www.EverythingEven.com.
DISCLAIMER — PLEASE READ CAREFULLY
The views expressed in this report are the personal views of the author, @Evenprime. Mammoth Resources Corp, Exploits Discovery Corp, and Slave Lake Zinc are a site sponsor at www.EverythingEven.com which hosts the yearly #StockPickingContest and @Evenprime owns shares in these companies. Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned anywhere in this report. This article is intended for informational purposes only! Please read the full disclaimer at the bottom of this article. All statements in this report, other than statements of historical fact should be considered forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often, but not always identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. Much of this report is comprised of statements of projection. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Risks and uncertainties respecting mineral exploration companies are generally disclosed in the annual financial or other filing documents of those and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report.
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