Leaders toast holiday bonus as JB suffers by doing the white thing

THE holidays must be near: fun-time stocks Ten Network and Domino's Pizza this week popped 22 per cent and 12 per cent, respectively. Those stocks, and the racers who picked them, lead the competition as our players round the corner and thunder down the final stretch.

By InvestSMART · 2 Dec 2012

By InvestSMART ·
2 Dec 2012

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THE holidays must be near: fun-time stocks Ten Network and Dominos Pizza this week popped 22 per cent and 12 per cent, respectively. Those stocks, and the racers who picked them, lead the competition as our players round the corner and thunder down the final stretch.

The ever-stellar Doreen Daze streaks to the front, leapfrogging contract manager David Peda, who also had a great week, and supplanting reader Angela Smith. Angela must have popped out for a coffee when the call came in that the mining boom was over. JB Hi-Fi is the only company on her list that doesnt generate money from the exploitation of natural resources, unless you count the proclivity of certain dads to buy endless Dora DVDs for their daughters.

Anyway, investors dropped JB after the retailer announced it was thinking of selling refrigerators and other goods of a similar hue. Its just not the white strategy, whined one aggrieved, but hilarious, shareholder.

Angela lost 5 per cent when the market was up 1.5 per cent, and she looks to have lost her chance to win the fairy-dust-sprinkled Tiara of Shares Race Delight.

No surprise then that the worst-performers list is packed with diggers and drillers, with the notable exception of agri-flop Elders, whose ability to disappoint never disappoints. Er, wait, am I disappointed or not? In any case, the stock has lost a quarter of its value over the three race weeks. Bad news for that red-suited, bearded fellow, who may just have to stick to his day job, whatever that may be.

Business manager Manish Bansal had a solid week, streaking from sixth to a spot in the top three. Next week: the final race for 2012!

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Frequently Asked Questions about this Article…

Which stocks led the gains this week — what happened to Ten Network and Domino's Pizza shares?

Fun‑time stocks led the rally: Ten Network jumped about 22% and Domino's Pizza rose roughly 12% this week, with commentary suggesting holiday‑season demand helped push those shares higher.

Why did JB Hi‑Fi shares fall and how much did the stock drop?

Investors knocked JB Hi‑Fi down after the retailer signalled it might start selling refrigerators and other 'white' goods. JB Hi‑Fi fell about 5% while the broader market was up around 1.5%, prompting some shareholder frustration summed up by the quip, “It’s just not the white strategy.”

Which sectors were the worst performers this week and why did mining stocks suffer?

The worst‑performers list was packed with diggers and drillers — mining and resources names underperformed after renewed concerns that the mining boom may be over. That sector weakness dragged down portfolios concentrated in miners.

What happened to Elders shares and why is that notable for everyday investors?

Agri company Elders was a notable underperformer, losing about a quarter (around 25%) of its value over the three race weeks. For everyday investors, it’s a reminder that agricultural and cyclical stocks can suffer steep, rapid declines.

How did reader portfolios fare in the shares race mentioned in the article?

Reader‑picked portfolios moved around the leaderboard: Doreen Daze surged to the front, David Peda also had a strong week and climbed into the top ranks, while reader Angela Smith lost about 5% and slipped down the standings.

What did the article mean by the 'mining boom was over' call and how can that affect stock picks?

The 'mining boom was over' comment refers to a market view that mining sector growth is cooling. In the article this call helped trigger declines in mining stocks, showing how a change in sentiment about a major sector can quickly impact stock‑heavy portfolios.

Is the shares 'race' a real competition and when does it finish?

Yes — the article describes a readers' stock‑picking competition (the 'shares race') tracking performance over weeks. According to the article, next week is the final race for 2012.

Should everyday investors be concerned when a retailer hints at selling new product categories, like JB Hi‑Fi and white goods?

The market can react quickly to strategic shifts — JB Hi‑Fi’s hint about selling white goods prompted a share price fall. Everyday investors should note that announcements about new product categories can affect investor sentiment and share price, and it’s worth watching company details and context before making decisions.