This post was published to Measured Approach at 11:29:32 AM 1/2/2011

Starting Lineup for 2011

At the start of the calendar year, there is a tradition of offering stock picks for the year. Our list
totals nineteen names. There is no attempt to diversify across industry groups or to focus on
market capitalization. The companies represent a narrow grouping of technology, retail,
consumer and a smattering of industrial companies. Five of the companies are in the retail
sector. They range in size (on the basis of market cap) from $271 million to $294,998 million.

The thread that binds all these companies is one of consistency. Each of these companies has
been profitable in each of the past seven years; each has been free cash flow positive each
year. They all have strong balance sheets and demonstrate the ability to grow sales, earnings
from continuing operations, and free cash flow. Each company is expected to grow earnings
going forward.

We believe each of the listed companies will show strong results in 2011. That being said, it is
not a static list. Circumstances change as does our opinion. Readers should do their own due
diligence and make up their own minds about each name.

Company Ticker Price Comment

Advanced Auto AAP $66.15 Advance Auto Parts, Inc. (Advance) is a specialty
Parts Inc. retailer of automotive aftermarket parts, accessories,
batteries and maintenance items primarily operating
within the United States.
Apple Inc. AAPL $322.5 Apple Inc. (Apple) designs, manufactures and markets a
6 range of personal computers, mobile communication
and media devices, and portable digital music players,
and sells a range of related software, services,
peripherals, networking solutions, and third-party
digital content and applications.
Balchem BCPC $33.81 Balchem Corporation (Balchem) is engaged in the
Corporation development, manufacture and marketing of specialty
performance ingredients and products for the food,
nutritional, feed, pharmaceutical and medical
sterilization industries. It has three reportable
segments: Specialty Products; Food, Pharma &
Nutrition; and Animal Nutrition & Health.
Bed Bath & BBBY $49.15 Bed Bath & Beyond Inc., along with its subsidiaries, is a
Beyond Inc. chain of retail stores, operating under the names Bed
Bath & Beyond (BBB), Christmas Tree Shops (CTS),
Harmon and Harmon Face Values (Harmon) and
buybuy BABY
C.H. Robinson CHRW $80.19 C.H. Robinson Worldwide, Inc. (C.H. Robinson) is a third
Worldwide Inc. party logistics company. It provides freight
 transportation services and logistics solutions to
companies of all sizes, in a variety of industries.
Dollar Tree Inc. DLTR $56.08 Dollar Tree, Inc. (Dollar Tree) is an operator of discount
variety stores offering merchandise at the fixed price of
one dollar.
FactSet Research FDS $93.76 FactSet Research Systems Inc. (FactSet) is a provider of
Systems Inc. global financial and economic information, including
fundamental financial data on tens of thousands of
companies worldwide.
Family Dollar FDO $49.71 Family Dollar Stores, Inc. (Family Dollar) operates a
Stores Inc. chain of more than 6,800 general merchandise retail
discount stores in 44 states, providing primarily
consumers with a selection of priced merchandise in
neighborhood stores.
Hanson Natural HANS $52.28 Hansen Natural Corporation (Hansen) is a holding
Corp. company. The Company, through its subsidiaries
develops, markets, sells and distributes alternative
beverage category natural sodas, fruit juices, juice
blends, juice drinks, energy drinks and energy sports
drinks, fruit juice smoothies and functional drinks, non-
carbonated ready-to-drink iced teas, children’s multi-
vitamin juice drinks,
Joy Global Inc. JOYG $86.75 Joy Global Inc. is a manufacturer and servicer of mining
equipment for the extraction of coal and other
minerals, and ores.
NetApp Inc. NTAP $54.96 NetApp, Inc. (NetApp) is a provider of storage and data
management solutions. The Company offers solutions
for storing, managing, protecting and archiving
business data.
Novo Nordisk A/S NVO $112.5 Novo Nordisk A/S is a Denmark-based health care
(ADR) 7 company. It also focuses within areas, such as
haemostasis management, growth hormone therapy
and hormone replacement therapy. The Company
operates in two business segments: diabetes care and
biopharmaceuticals.
NVE Corporation NVEC $57.83 NVE Corporation (NVE) develops and sells devices that
use spintronics, a nanotechnology. The Company
manufactures spintronic products, including sensors
and couplers that are used to acquire and transmit
data.
Oracle Corp. ORCL $31.30 Oracle Corporation is an enterprise software company.
The Company develops, manufactures, markets,
distributes and services database and middleware
 software, applications software and hardware systems,
consisting primarily of computer server and storage
products.
PetSmart Inc. PETM $39.82 PetSmart, Inc. (PetSmart) is a specialty provider of
products, services and solutions for the lifetime needs
of pets. The Company offers a line of products for all
the life stages of pets, and offers various pet services,
including professional grooming, training, boarding and
day camp.
Priceline.com Inc. PCLN $399.5 priceline.com Incorporated (priceline.com) is an online
5 travel company, which offers a range of travel services,
including hotel rooms, car rentals, airline tickets,
vacation packages, cruises and destination services.
Starbucks Corp. SBUX $32.13 Starbucks Corporation (Starbucks) is the roaster and
retailer of specialty coffee in the world, operating in
more than 50 countries. Starbucks purchases and
roasts whole bean coffees and sells them, along with
handcrafted coffee and tea beverages and a variety of
fresh food items, through Company-operated retail
stores.
USANA Health USNA $43.45 USANA Health Sciences, Inc. (USANA) develops and
Sciences Inc. manufactures high-quality, science-based nutritional
and personal care products, with a commitment to
continuous product innovation and sound scientific
research.
Varian Medical VAR $69.28 Varian Medical Systems, Inc. is engaged in he design,
Systems Inc. manufacture, sale and service of equipment and
software products for treating cancer with
radiotherapy, stereotactic radiosurgery and
brachytherapy.

Someone may argue that I missed the boat on this list and they may be right. The average 52
week gain for these stocks is 52%. Gains ranged from a low of 27% for BBBY to 83% for PCLN.
These market beating gains are not the result of short-term fads. All of these companies are
proven to be consistent winners.

Disclosure: Author has long positions in AAP, BCPC, FDS and NVEC.