The Sivy 70: Hot Tip?

Michael Sivy writes for Money magazine and has identified a list of 70
stocks called the Sivy 70. His objective in creating the Sivy 70 was to
identify the strongest and most secure large company stocks and buy them
when they have a dip or are undervalued.

I did a quick analysis on this portfolio to see how the portfolio had done
in 2005 and how it has been doing so far in 2006. Note that the objectove of
the Sivy 70 is not for investors to go and buy these 70 stocks outright. It
is a guidance on the strongest stocks and what to buy when there is downturn
in the market or on these individual stocks.

My analysis is interesting:

Stock price for 32 out of the 70 stocks fell in 2005. So, if we are looking
for a dip in the stock, our first target would be these 32 stocks.

The stock price for 19 stocks went up by double digits in 2005. So, as a
right hand rule we can consider them "not" undervalued.

Out of the 32 stocks whose price fell in 2005, the price of 17 continues to
fall in 2006. So, these should be the first targets for assessment whether
their price is undervalued compared to their prospects.

In the 17 stocks discussed above are companies such as general Electric,
Bank Of America, IBM, Dell and Home Depot. Are they ripe for adding to our
portfolio?

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