David Korn: Brinker's Stock Recommendations

David Korn summarizes and comments on Bob Brinker's individual stock recommendations. Here are some excerpts from David's newsletter of February 23, 24, 2008 -- posted with David's permission:
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David Korn's Stock Market Commentary, Interpretation of Moneytalk (BobBrinker Host), Financial Education, Helpful Links, Guest Editorials, andSpecial Alert E-Mail Service. Copyright David Korn, L.L.C. 2008 http://david-korn.blogspot.com/
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INDIVIDUAL STOCK RECOMMENDATIONS BY BOB BRINKER
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Caller: This retired caller bought $2,060 worth of Jacobs Engineering (ticker: JEC) in 1986 on Bob's recommendation. The stock has grown by leaps and bounds and is now worth over $400,000, accounting for over half of her total portfolio. She wanted to know if she should cash it in at one time,or sell it in increments. Bob said he thought it was important to diversify and he would make a significant reduction. You would only be liable for long term capital gains. Bob said he would move to a balanced portfolio.Bob noted that people can build up a mind boggling amount in individual stocks.
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EC: I don't recall Bob ever specifically recommending Jacobs Engineering. If he did, it might have been one of those casual mentions he did on the radio because if it was something covered in Marketimer, Bob would definitely have said something about it.
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Brinker Comment: Bob noted that he has heard such comments from subscribers who purchased Vodafone or Microsoft back when Bob first recommended them and they have both had huge gains. If you are in a good company over a long period of time, even when there is a lot of volatility you can see incredible gains. Bob said he has a current "hold" recommendation on Vodafone and Microsoft as those original stock recommendations date back to 1989 and 1990.
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EC: I give credit to Bob for his initial recommendations of Microsoft and Vodafone. However, what Bob didn't mention is that in March 2003 he issued a buy on them again, and they have underperformed the market over the last 5 years. So, while his initial recommendation of the stocks was great, the last time he recommended them has been a bust. Other than Microsoft and Vodafone, the last individual stock that Bob recommended was Ultratech (UTEK), but he sold that a long time ago and he got a lot of grief for it. Overall, Bob's individual stock recommendations have been hit or miss and I think it is very possible that Bob may never make a new individual stock recommendation ever again."
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