Wednesday, January 24, 2007

My Stock Picks for Q1 2007

As I wrote in a previous post, I am bullish for the early part of 2007. The trouble is that my stock picking system had not identified any outstanding buys. That changed last week. Here are the picks from my system that I will or have purchased: Avnet (AVT), CB Richard Ellis (CBG), Coach (COH), Apple (AAPL), Biogen Idec (BIIB), Genlyte (GLYT). Stocks that qualified but I am not purchasing at this time: Cognizant Technology (CTSH), Nordstrom (JWN) and American International Group (AIG).

Here are the purchases I made in my IRA on 1/22/07.

Stock

Ticker

Shares

Price

AvnetAVT100$26.13
CoachCOH50$44.01
Biogen IdecBIIB50$51.14
GenlyteGLYT50

$76.5


On 1/22/07, I also purchased 100 shares of Avnet @ $26.10 for our taxable account. I did not purchase Apple since we already own it. In addition, my limit orders for CB Richard Ellis did not execute in the taxable or IRA accounts. I will likely try to buy this stock later.

For reference, I base my system on the Unemotional Growth System from the book The Unemotional Investor by Robert Sheard, with the following modifications. First, I look at the top 20 stocks. In addition, I have found that avoiding the stocks that have a high percentage of shorted shares and investing when the Value Line weekly Rank 1 turnover is low are good additions to his Unemotional Growth criteria. I did not rigorously test these additional criteria. However, in the year that I have been using this system, the additional criteria have worked well.

I like the systems provided by The Unemotional Investor, because they have buy and sell signals. And it takes the emotion out of buying and selling a stock. To note, I still use some judgement since I don't always follow the rules exactly:-)

For more information on the The Unemotional Investor styles, see the book by Robert Sheard.


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This is not financial or investment advice. Please consult a professional advisor.
Copyright © 2007 Achievement Catalyst, LLC

2 comments:

Man on a Mission said...

It never ceases to amaze me how many ladies can justify a $600 Coach purse with matching wallet! I've used the same $12 wallet for about five years. Regardless, with the margin they are pulling on these high-end accessories, and disposable income on the rises, your pick makes a lot of sense!

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