Stuff a stock in your friends' stocking...

Last year I had an epiphany - I decided to buy my best friend and my boyfriend stock for Christmas. Seeing as both of them know me better than I know myself, they realized that it was a perfect gift from someone as stock eccentric as me. The reason behind my epiphany was - anything you buy depreciates immediately. iPods, TVs, cars- whatever. The second you buy it, it's already lost value. (Although it can be argued that because it came from a close friend it gains value, I'll argue back that it doesn't gain any monetary value.) I then started to think of gifts that only appreciate in value. Being the stock person that I am, it hit me like a ginormous bus. Buy them stock!

For my best friend last year, I bought 1 share of Sonic Drive-In (SONC) along with a $10 gift certificate to Sonic. I bought the share at $29.09, and even though Sonic has seen share prices in the mid to high 30s during the year, it is trading a hair under $30. Within one year, my friend had earned $0.90 on my Christmas present. How many people can say they've earned money off of a present?

For my boyfriend, he got a little more extravagant present - 3 shares of Google (GOOG). I wanted to buy Google for myself for the longest time. But seeing as how people have been screaming overvaluation since the day it IPO'd, I was afraid it would drop in the short term, and since I check my positions every day, it might've devastated me too much. So I bought them for him. He's made a cushy 130% return.

So the question is, what stocks should you buy? Marketwatch.com had a fund manager suggest four:

- Netflix (NFLX) - $24.43 (I kinda like this idea)
- Yankee Candle (YCC) - $25.85
- Tempur-pedic (TPX) - $12.37
- 1-800-CONTACTS (CTAC) - $12.51

I have two choices myself - although they're trading in the $30s and therefore might be too expensive to be classified as stocking stuffers -

- Starbucks (SBUX) - $31.66 - for those coffee drinkers a loaded Starbucks card (i.e. $5)would go along nicely with it
- McDonalds (MCD) - $35.50

I like to choose companies that I know they'll end up supporting. My best friend enjoys Sonic drinks. Sonic was the most obvious choice for her, because she'll stay loyal to a company she's already loyal to. Ownership will only increase her loyalty and thus drive earnings too.

Stock gifts NOT to give -

- NutriSystems (NTRI) - $39.20 - helps people lose weight through online correspondence and pre-packaged meals. The receiver will take the gift the wrong way. (*Note - this stock is on my watchlist though)
- Krispey Kreme (KKD) - $6.01 - you definitely don't want to buy friends shares of a company that may go under.
- Foundation Coal Holdings (FCL) - $37.26 - don't be giving your friends or loved ones that lump of coal for Christmas! (*Note - Other than the name, I know nothing about this stock)

Another alternative is buying one share through (the aptly named) OneShare.com. They send the receiver a nice framed (if you pay for the frame) stock certificate. I have to admit, they are quite good looking. But you have to buy it at a premium because of their "transfer fee". They still have the market prices as a base, but there's no way to compete with your own discount broker. For example, one share of Starbucks - SBUX - would be a total cost $71 ($32 market price + $39 transfer fee), whereas a share of Starbucks through my brokerage and transferred to my friend would cost $32 market price + $7 commission = $39. On the other hand, If I ever wanted a fancy schmancy stock certificate (which eventually I might), this would be the way to go.

Even though giving stock as presents sounds like a good idea, it may be too much trouble to actually go through with. If you and your friends don't share brokerages, it's a big hassle and you should contact your brokerage if that's something you really want to look into. Luckily, my friends and I use Scottrade, so we can transfer positions freely within Scottrade and all is well.

Also, don’t assume that because you love stocks that everyone does too. There were some friends that I chose to omit from my stock-giving because I know they would appreciate tangible gifts more. To each his own.

Anywho, remember that the holiday season is the time for giving – be nice to those who are less fortunate too.