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Morningstar's Contrarian Portfolio--10 Stocks to Buy
Popularity doesn't always mean fat profits for investors.
by Dreyfus Neenan | 02-18-05 |

Contrarian investment strategies are popular among value-oriented investors, and in our opinion, rightly so. Stocks that are widely ignored or despised are more likely to sell at an attractive discount to fair value than stocks with heavy analyst coverage or a household name.


Introducing Morningstar's 2005 Contrarian Portfolio
We think that the promise of our Contrarian strategy warrants releasing it for investors to consider. To that end, we'll evaluate our 2004 and 2005 contrarian portfolios over time, and if the concept continues to generate attractive returns we may publish these annually. While we won't release page rank data, we will provide an occasional update on our contrarian portfolios. Here are our 10 contrarian stock ideas for 2005, along with their page ranks and 2004 returns:

2005 Morningstar Contrarian Portfolio

Name Star Rating Rank 2004 Return

Micrel MCRL 5 2,865 -29.18%

Fed. Investors FII 5 151 5.00%

Lear LEA 5 477 0.85%

Group 1 Auto. GPI 5 893 -12.96%

Millennium Phar. MLNM 5 600 -34.91%

Intersil ISIL 5 474 -32.28%

DeVry DV 5 420 -30.92%

Allied Waste AW 5 293 -33.14%

eSpeed ESPD 5 271 -47.322

Fifth Third Bank FITB 162 -17.89

Average Return
(equally weighted) -- 661 -23.28%

S&P 500 -- -- 10.88%

Outperformance -- -- -34.16%

ps. sorry I don't know how to format the table better. :)

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