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The Kids Portfolio

Every once in a while it's a good idea to check in with the kids and see what products and companies they like and respect. This is always a fun exercise and, with the market looking so grim lately, it's something I thought might cheer us up.

The following list is filtered through the sensibilities of a 13 year old boy who knows what he likes. In no particular order, here is the Kids Portfolio:

Zumiez (ZUMZ) - probably the strongest stock in the bunch, the Zumiez store is a favorite destination. Already up around 25% or so this year, the company seems to have avoided the weak same-store sales problems encountered by its competitors. This stock is worth a look.

Volcom (VLCM) - my kids really love the skater chic but the company has missed earnings targets and the stock has wiped out.

Billabong (ASX:BBG) listed on the Australian exchange, Billabong has lots of attitude but it may not be easy to get the shares in the US. Then again, you might not want to as the stock price recently took a dive and the stock is slightly negative YTD.

Abercrombie & Fitch (ANF) - struggling to stay above water, the stock is currently trying to move up above its 200-day moving average (we have a weak TradeRadar BUY signal so ANF might be worth watching)

American Eagle Outfitters (AEO) - my kids might like the clothing at American Eagle but apparently other kids are staying away in droves. The stock has rolled over completely this year and is off about 30% YTD.

Nike (NKE) - always a favorite in our house from sneakers to clothing to golf clubs. And the stock has been a steady performer. Though there has been some volatility lately, NKE is still up around 12% YTD.

Apple (AAPL) - iPod is ubiquitous, iPhone is all over the media and who doesn't like iTunes? Stock has started coming back to earth but still a strong company at the top of its game.

Adidas (ADDYY.PK) - popular sportswear, footwear, etc. Stock is still hanging on to a gain so far this year. Company has turned in good earnings numbers but is being held back by problems in Reebock which it acquired in 2005.

Aeropostale (ARO) - some kids (not mine) like the clothes but investors don't like the stock. The chart is dismal.

Electronic Arts (ERTS) - video games are a serious part of life for lots kids and adults. ERTS is the major player in the sector and the stock has been perking up a bit lately (currently flashing a weak TradeRadar BUY signal, another stock to keep an eye on)

Google (GOOG) - number one for search among kids, too. Stock is still up around 8% so far this year. It's hard to go wrong with an investment in the GOOG.

Yahoo! (YHOO) - the stock has taken a dive this year but kids like the free email and other kinds of content like the games, weather, etc.

Guitar Center (GTRC) - this stock is a pretty good performer, up around 20% YTD. Selling the dream of rock stardom has an irresistible appeal to lots of kids and adults, too, I might add (yes, I still have my stash of guitars and keyboards).

Quiksilver (ZQK) - cool surf and skate clothing but the chart is all over the place. Problems with rising expenses and the burden of owning Cleveland Golf, a mismatched acquisition, will hold the shares back in the near term.

Conclusion

It looks like we have a few winners here and a few that might fit on the watch list. Among the winners there is Zumiez, Guitar Center, Apple, Nike and Google. The watch list population might include Electronic Arts, Abercrombie & Fitch and Adidas. Not a bad group of investing ideas and to think they came from a 13 year old. As the Who would say, "The Kids are Alright"

Disclosure: author owns none of the stocks listed

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