Ten Best Stock Performers Headquarter in US, China and Australia

Jan 2, 2010
Howard Bryan Bonham

Granted, it is hard to imagine how that gorgeous animal, with its blue eyes and pink nose, could be more stimulating to the year’s unfolding events in 2010 than the unyoked Ox of 2009. That bovine beast looked remarkably like Merrill Lynch’s energized bull in bronze by yearend. (See images below.)

Like a string of popping firecrackers, the year was bullish for most Chinese stocks. They rose by 73.37% on average, as reported in the Emerginvest.com stock profile.

Stocks Were Higher in Other Parts of the World Also

Nor were other parts of the globe dismayed by economic hard times, for seven global stock market indexes rose by 67.6 percent on average in 2009, with most of their gains posting in the final quarter.

US investors can use the robust stock rallies in 2009 to examine what types of stocks are attracting investors as 2010 starts. Although the pickings might be slimmer, they could produce standouts in 2010 similar to the winners of 2009.

Ten Best Stocks in US Markets Started Year as Penny Stocks

The ten best performing stocks in the US in 2009, combining NASDAQ, New York and American Stock Exchanges, were by companies situated in the US (6), China (3), and Australia (1). They all started the year as penny stocks, at prices ranging from $0.08 to $1.25/share.

They are ranked below by Rate of Return (ROR), using the FINWIZ.com database: (Ending Price – Beginning Price) / (Beginning Price) x 100 = ROR.

1. Walter Investment Management Corp. (WAC/$14.33): +17900.00%
2. Diedrich Coffee, Inc. (DDRX/$34.88): +9591.67%
3. Heartware International, Inc. (HTWR/$36.10): +9535.78%
4. Orient Paper, Inc. (ONP/$10.43): +3950.00
5. Gulf Resources, Inc. (GFRE/$11.20): +3810.00%
6. Select Comfort Corporation (SCSS/$6.57): +2540.0
7. China Agritech, Inc. (CAGC/$27.70): +2344.35%
8. Dollar Thrifty Automotive Group, Inc. (DTG/$26.02): +2304.59%
9. Vanda Pharmaceuticals Inc. (VNDA/$11.65): +2266.00%
10. Infinity Energy Resources, Inc. (IFNY/$2.80): +2233.33%

There are revealing long-term aspects to the type of business each winner conducts. Four of the American companies engage in consumer or service-related industries, reflecting the importance of these types of business in the present US Yucky Domestic Product (GDP) mix.

Four of Top American Stocks Are in Service or Consumer Industries

• Walter Investment Management Corp. (#1) is the largest surprise, considering the harsh worldwide real estate climate. It is a real estate investment trust (REIT), which holds and services mortgage loans to subprime, nonconforming and other credit-deficient borrowers. Based in Tampa, Florida, the company started operations in 1997.
• Diedrich Coffee, Inc. (#2) sells and roasts coffee in the US, through a network of coffee distributors, restaurants, coffeehouses and other retailers. Brand names are Gloria Jean’s, Black Tiger, and Morning Edition. The company, founded in 1972 and the oldest of the top ten, is domiciled in Irvine, California.
• Select Comfort Corporation (#6) manufactures and markets adjustable beds and sleeping accessories in the US and Canada. It markets through retail, direct marketing and e-commerce connections. Sleep Number mattresses, Personal Warmth blankets and Personal Comfort massage beds are brands. The company opened its doors in 1987 and headquarters in Minneapolis, Minnesota.
• Dollar Thrifty Automotive Group (#8) rents and leases motor vehicles. Dollar and Thrifty are brands, principally in the US and Canada. Opening in 1989, it is headquartered is in Tulsa, Oklahoma.

Two of America’s Top Performers Operate in Established Industries

The other two US elite performers are in pharmaceuticals and oil and gas production, reminiscent of companies dominating the US GDP before the 1970s.

• Vanda Pharmaceuticals Inc. (#9) is a biopharmaceutical, focusing on development and marketing of drugs for disorders of the central nervous system – Lloperidone, for the treatment of schizophrenia, and Tasimelteon, for insomnia. Vanda commenced operations in 2002 and headquarters in Rockville, Maryland.
• Infinity Energy Resources (#10) is in one of America’s oldest industries – oil and natural gas production. Its properties are in north central Texas, Wyoming and northwest Colorado, as well as offshore Nicaragua. This Denver concern was founded in 1987.

Only Highest-Performing Australian Stock Manufactures Blood Pumps for Heart Patients

Surprisingly, only two medically-oriented companies appear in the high-octane performance circle. Vanda Pharmaceuticals, while an Australian company was the other.

• Heartware International, Inc. (#2), a medical device supplier, represents the Aussies. The company is developing and intends to market blood pumps, surgically implanted to augment circulation in patients suffering from chronic heart failure. The company’s initial public offering (IPO) was January 2005. Its e its headquarters are in Kirrawee, Australia.

All Three of China’s Super Stocks Belong in Basic Industries

The three Chinese stock greyhounds of 2009 reflect the surge of modern China into basic industries, not unlike the US following world War II.

• Orient Paper, Inc. (#4) provides paper and paper products, including copy, craft, graphic-design, digital photo, and corrugated papers, and antifraud security paper. Founded in 1996, the company is domiciled in Boarding City, People’s Republic of China (P.R.C.).
• Gulf Resources, Inc. (#5) produces bromine and crude salt, used in brominated flame retardants, fumigants, water purification compounds, dyes, medicines and disinfectants. Additionally, the company makes demulsified agents, corrosion inhibitors and bactericides. It is based in Shouguang City, P.R.C. Year of origin was 1993.
• China Agritech, Inc. (#7) makes and sells organic liquid compound fertilizers and related products. Lvlingbao III fertilizer is manufactured for fruits and vegetables, while Lvingbao IV is marketed for large scale crops of fruits, vegetables and grains. Based in Beijing, P.R.C., the company started operations in 2003.

Disparities in Outlooks of Experts Could Foretell Voltile Markets Ahead

Vital stock markets in 2009 rose as the year drew on, in spite of the dire situations from bulging government deficits and depressed economies. Many experts believe the rally will carry over into the new year as investors look beyond and discount 2010. But there are legions of naysayers, a scenario that could spell extreme volatility in securities markets.

*This article is written by a Chartered Financial Analyst (CFA).

Stock Data Source: FINWIZ:com