(GROW) - (ADY) - (AOB) - (BRLC) - Ian Wyatt, Growth Report newsletter

Through the merits of proper diversification, what started out as disappointing year turned into a bearable one with a portfolio return of 11.1%, as of December 15, 2006, for Ian Wyatt, editor of the Growth Report newsletter. Read this featured expert's commentary and learn about some of his recent portfolio additions that could deliver outsized returns in 2007. Commentary January 3 Looking back at 2006, Ian Wyatt and his team are reminded of the importance of portfolio diversification. While concentration in certain industries can lead to outsized returns if that industry is surging, it can also lead to disappointing results if that sector happens to slide. Proper diversification across industries can mitigate some of this downside risk. The Growth Report portfolio started out 2006 heavily invested in the oil and gas services sector, as Wyatt's research team saw impressive financial growth and downright cheap valuations. While the financial performance at these companies continues to be impressive, the performance of their stocks has been less impressive as many investors have exited the sector on fears that lower gas prices will lead to an industry downturn. As the portfolio evolved over the course of the year Wyatt and his team started embracing more Chinese firms, technology companies, and firms from other industries, and the prospects and returns greatly improved for Wyatt's portfolio as a whole. Through the merits of proper diversification, what started out as disappointing year turned into a bearable one, culminating in a portfolio return of 11.1% as of December 15, 2006. One notable highlight is US Global Investors (GROW) an investment advisory and mutual fund management company with nearly $5 billion in assets under management as of September 30, 2006. Since adding US Global to the Growth Report Portfolio on November 8th, 2006, shares had increased approximately 121% at the time of writing, just 40 days after Wyatt's purchase. Another highlight is American Dairy (ADY), added September 5, 2006. American Dairy, one of the leading producers and distributors of milk powder and soybean products in China, had returns in excess of 72% at the time of writing 104 days after Wyatt's purchase, and is poised for further growth as the Chinese middle class grows. This month's additions to the Growth Report portfolio continue in Wyatt's practice of proper diversification across sectors. American Oriental Bioengineering (AOB) develops, manufactures and markets bioengineered and traditional Chinese medicinal products, primarily in China. Partly from astute acquisitions and partly from organic growth, in 2004 and 2005, revenues have increase by 53.2% and 71.2%, respectively, and the company stands poised to double its revenues in 2006. The second addition, Syntax-Brillian Corp. (BRLC) is a growing global pure play in liquid crystal display (LCD) and liquid crystal on silicon (LCoS) widescreen high-definition TVs (HDTV). At the core of the company's business, which stands to benefit from explosive growth in the HDTV and LCD TV markets, is its higher end Olevia brand of widescreen HDTV-ready and HD-built-in LCD TVs. With these recent additions adding to already diverse group of companies in the Growth Report portfolio, Wyatt and his team truly feel they have the appropriate mix of firms to deliver outsized returns in 2007. This article highlights the commentary of Ian Wyatt for the Zacks.com audience. Ian Wyatt provides insightful analysis, market commentary, and favorite recommendations on a timely basis in "Growth Report" newsletter. Try it free for 30 days and see if you can improve your investment performance. Learn more about "Growth Report" and 30-Day Free Trial. And get immediate access to current issues and special reports. Click here now. Here's How You Can Profit from the Pros Find out what other leading experts are saying about the market. And what stocks they are recommending. For free. Just sign up for our free email newsletter, Profit from the Pros, where we'll give you the commentary, advice, and insight from those rare few experts who consistently beat the market year in, year out. | Blog Home| VitalStocks Home