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HOUSTON, Dec. 17 /PRNewswire/ -- While the stock market has been somewhat frightful, Santa's stock performance has been delightful as his 2007 portfolio increased 28 percent through December 13. The ups and downs for the year resembled a wild sleigh ride at times, but for Santa, troubles were out of sight. In fact, thanks to an impressive five-year average return of 34 percent, Santa is hearing those profits jingling, ring ting tingling too.

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Beginning in 2002, Amegy Bank of Texas tracks the yearly performance of a hypothetical list of stocks Santa is likely to put on his wish list. Santa's portfolio includes 24 stocks, a holly, jolly assortment of companies that, on the whole, have been merry and bright and fared better than the market. The Dow Jones Industrial Average has increased 10.9 percent year-to-date, including dividends, while the S&P 500 Index and the NASDAQ Composite Index are up 6.9 percent and 11.3 percent, respectively.

"While some investors have watched out and others have wanted to cry, Santa knew better than to pout and I'm telling you why: he's a savvy investor who takes careful steps in his portfolio planning," explained Paul B. Murphy, Jr., CEO, Amegy Bank of Texas. "Santa recognizes it's important to invest for the long run, diversify your portfolio and analyze your investment choices each year."

In analyzing his stock selections at the beginning of 2007, Santa was very logical as he made his list and checked it twice. In addition to rebalancing his existing holdings, he decided on only a few changes. After successfully investing in the stock market for many years, he gained confidence in his stock picking insight that comes from reviewing the wish lists of boys and girls throughout the world. As a result, Santa decided to sell his passive market index exchange traded funds and to reinvest the proceeds in direct stock investments. Santa's portfolio turnover was a moderate 25 percent.

Santa realized it was beginning to look a lot like Christmas on the Internet due to the huge growth of online retailing in 2006, so he lightened up on traditional retailing by selling Sears Holdings and adding Amazon.com. While bells are ringing, children are singing and all is merry and bright when it comes to big box electronic retail stores, Santa realized he was adequately covered by shares of Best Buy and decided to sell his Circuit City Stores shares.

The tremendous productivity Santa gained navigating right down Santa Claus Lane from the use of a handheld GPS prompted him to buy shares of Garmin Ltd in early 2007. Not only does it help when dashing through the snow, but Santa's Garmin also enables him to get over the river and through the woods with ease.

Santa's next two changes to his portfolio came from analyzing the toys that were produced at the North Pole in 2006. Seeing that Nintendo's Wii was among the most requested items during Christmas 2006, he bought the stock in the beginning of 2007. He was already familiar with the company since he had previously owned its shares from 2002-2003. Santa also discovered many of the older boys and girls around the world were requesting cell phones and decided to add Nokia to his portfolio.

"With Santa adding both Nintendo and Nokia to his portfolio, it gave him a larger exposure to international equities than he had previously," said Mike Krach, chief investment officer, Amegy Bank of Texas. "Santa realized that the growth characteristics of companies outside of the U.S. are more robust and that there are many successful companies located around the world."

Perhaps the biggest observation from 2006 wasn't a new toy, but rather what powered the toys: batteries. To keep the toys rocking around the Christmas tree, Santa also bought Energizer Holdings shares.

With performances that have been good, for goodness sake, the best performing stocks in Santa's 2007 portfolio include Nintendo (up 127 percent), Amazon.com (up 134 percent), Apple Computer (up 126 percent), and Gamestop (up 108 percent).

Although Santa makes it a practice to go down through the chimney with lots of toys, for some traditional retailers, they didn't experience Christmas joys. The companies with the biggest losses in Santa's portfolio include Nordstrom (down 25 percent), Kohl's (down 30 percent), and Macy's (down 23 percent). Hershey's profits were also hurt by commodity price inflation squeezing profit margins, with the stock down 20 percent.

As 2007 is drawing to a close, Santa is proving that he is still a very savvy investor. The stocks in his portfolio were selected with care, in hopes of profits and increased shares. But Santa realizes the market is volatile, and so he'll continue delivering toys with a smile.

    Santa's 2007 Stock Portfolio             YTD Return*
    Amazon.com                                 134.2%
    Apple Computer                             126.1%
    Best Buy                                     5.7%
    Dell                                        -5.9%
    Energizer Holdings                          64.0%
    GameStop                                   108.9%
    Garmin Ltd                                  90.2%
    Google                                      50.7%
    Hasbro                                      -1.4%
    Hershey                                    -20.5%
    Joseph A. Bank Clothiers                    -9.2%
    Kohl's                                     -30.1%
    Macy's                                     -23.8%
    Mattel                                      -7.1%
    Men's Wearhouse                            -17.9%
    Nintendo                                   127.2%
    Nokia                                       95.3%
    Nordstrom                                  -25.5%
    PetSmart                                    -8.2%
    Tiffany & Co                                17.7%
    Tractor Supply Company                     -16.4%
    Wal-Mart Stores                              6.7%
    Walt Disney                                 -2.1%
    YUM! Brands                                 36.2%

    *YTD Return as of 12/13/07
    Source: Reuters StockVal, Bloomberg L.P.

The information shown is offered in the spirit of the season, and is not

 intended to be a true and accurate measure of any investment portfolio, nor
     should it be used to predict the future performance of the companies
    mentioned, implied or otherwise.  It is not an offer, solicitation or
                         recommendation of any kind.

About Amegy Bank of Texas

Amegy Bank of Texas is one of the fastest growing banks in Texas. With assets of more than $10 billion, local decision making and a history of relationship banking, Amegy has the resources to serve leading Texas companies as a source of capital as well as provide efficient and effective treasury management, international and investment services. The Bank, with more than 80 locations in the state, specializes in small business banking as well as private financial management and trust services for families and individuals, and retail and mortgage banking services. Amegy is a part of the Zions Bancorporation (Nasdaq: ZION) collection of great banks.

SOURCE Amegy Bank of Texas