Wednesday, June 21, 2006

Watching the Stock Trades of One of the Sharpest Stock Pickers (CNBC Squawk Box Maserati Competition Winner)

Thomas Ko beat out over 150,221 investors in the CNBC Squawk Box Challenge by turning a hypothetical one million dollar portfolio into over $5 million in just six weeks.

Thomas Ko is still on a hot streak. He's matched up against 5 bonafide stock market professionals and is kicking their butt too!

Go to the MSN Strategy Lab to watch Thomas Ko's trades. Thomas Ko started with a hypothetical $100k on June 16th and has already turned it into $134,548. Part of his edge is probably the fact that he's hot and everybody is piling in, more so than the Jim Cramer (BoooYAH) fanatics.


Anonymous said...

Looks like the pros don't actually invest the money, but rather "hypothetically" invest it. I don't see them taking into account the transaction costs one would incur as well as the volatility from one the investor investing actual money into the stock/position. You can't just dump millions of dollars into a stock all at one point as your own purchase of the stock would affect the price of the stock.

From CNBC site:

"Editor’s note: Ko won CNBC’s six-week Squawk Box challenge largely thanks to a single dramatic trade.

Ko and the other contestants started in early April with a virtual $1 million portfolio. Ko’s portfolio was worth about $2 million when he put the entire amount on Escala Group (ESCL, news, msgs). The stock had had hit a 12-month high of $35 in February, but fell precipitously after Spanish prosecutors declared its majority shareholder and only major customer -- Afinsa Bienes Tangibles -- insolvent after raiding the company’s offices in an investigation into a stamp-investment program. He bought near the bottom, at around $4, and his portfolio surged as Escala rapidly recovered.
He ended the contest with $5 million -- a 400% gain."

Sounds to me like he gambled big and won. I do that time to time with my billions of "fake" money :P

Finance Junkie said...

Yeah, I meant to say: "One of the Hottest Stock Pickers."

It's a bit of a misnomer to say "sharpest" because luck was a factor.

Finance Junkie said...

Nonetheless, his last stock pick is up 30%+ in less than a week.

I meant that people are piling in on his last pick. While, his last hypothetical transaction does not directly impact market prices for the stock, people that followed his trade did trade real money on his pick.