Sweet 16 Update - Dec 31, 2021

[dan_s]

The 2021 version of the Sweet 16 Growth Portfolio smashed all records.
Over the last 365 days the Sweet 16 gained 132.62%, more than doubling the previous best year, which was 2010 when the Sweet 16 gained 54.10%.

2021 was a "Rebound Year" for stocks with the S&P 500 Index gaining 26.89%. If you have a mutual fund that didn't gain at least 20% in 2021 you need to move that money.

This is also just the 2nd year that all 16 companies were up on the year.
> Callon Petroleum (CPE) gets the Gold Metal going from $13.16 to begin the year to close today at $47.25, a gain of 259.04%.
> Others gaining more than 200% were Antero Resources (AR) up 221.10% and Laredo Petroleum (LPI) up 205.23%.
> Trailing the pack and the only stock that didn't more than double the S&P 500 Index was Talos Energy (TALO) up just 18.93%. Talos took a hit from Hurricane Ida and from Mexico's decision to take over operatorship of their Zama discovery. I am moving Talos to our Small-Cap Growth Portfolio where it will be one of my Top Picks for 2021. It closed today at $9.80, which is 185.7% below my Fair Value Estimate of $28.00 per share. With one exception, the worst performing stock in one year has gone on to be one of the Top Four the next year. Talos should be a double for us if WTI stays over $70/bbl next year.

I created the Sweet 16 Growth Portfolio in 2001 when Kevin Hopkins first published the Energy Prospectus newsletter.

For the 2022 version of the Sweet 16:
> Devon Energy (DVN) and Pioneer Natural Resources (PXD) are moving to our High Yield Income Portfolio.
> Talos Energy (TALO) is moving to the Small-Cap Growth Portfolio.
> Being promoted to the Sweet 16 are:
>> Magnolia Oil & Gas (MGY)
>> Matador Resources (MTDR)
>> Northern Oil & Gas (NOG)
Updated profiles on the 3 new companies can be found under the Small-Cap tab on the EPG website.

"The View from Houston" newsletter will be sent out via email to all EPG members on Sunday afternoon, January 2. It will show my updated valuations for all of the stocks in the Sweet 16 and the Small-Cap Growth Portfolio.

Next week we will also publish updated profiles on several companies in our High Yield Income Portfolio.

Happy New Year! 2021 will be a hard act to follow, but the 2022 version is going to open the year at more than a 67% discount to my Fair Value Estimates and they are all going to report strong Q4 2021 results.