Monday, May 28, 2007

Stock Buy List - 5/28/07 Update Part 1

I base my stock picking system on the Unemotional Investor 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.

Interestingly, the last two weeks have had a high turnover of Rank 1 stocks. However, many of the stocks being added are showing up in the top 20 of the list. While I have not seen this phenomenon before, my experience tells me this is a positive sign for the market. Here are the four buys identified by the system.

My Wealth Builder Buy List
StockPurchase DateShares Price
Terex (TEX) try week of 5/29/07


Potash (POT)try week of 5/29/07


Shaw Communications B (SJR)try week of 5/29/07


Avnet (AVT)4/20/07



All four picks are in industries that I believe will benefit from the strong economy and business investments - infrastructure, materials, communications, and computers. Here is a brief description for each company, quoted from the Yahoo! Finance profiles.

Terex Corporation (TEX) manufactures equipment for construction, infrastructure, quarrying, mining, shipping, transportation, refining, and utility industries worldwide. It operates in five segments: Terex Aerial Work Platforms; Terex Construction; Terex Cranes; Terex Materials Processing & Mining; and Terex Roadbuilding, Utility Products, and Other.

Potash Corporation of Saskatchewan, Inc. (POT) engages in the production and sale of fertilizers, and related industrial and feed products. The company manufactures and sells solid and liquid phosphate fertilizers; animal feed supplements; and industrial acid, which is used in food products and industrial processes.

Shaw Communications (SJR) provides broadband cable television, Internet, digital phone, telecommunications, and satellite direct-to-home (DTH) services in Canada and the United States. Its cable television services include basic cable and extended tiers, digital cable, pay television and pay-per-view, video-on-demand, bundling services, and new video services.

Avnet (AVT) distributes electronic components, enterprise network and computer products, software, and embedded subsystems primarily in Americas, the Middle East, Asia, Africa, and Europe. It has two divisions, Electronics Marketing and Technology Solutions.

I currently own Avnet (AVT) from my Q1 2007 Stock Pick List. I will be looking to buy the other three during this week.

Finally, the system also identified four stocks that "almost" met the buy criteria. They were close enough that I may consider selective purchases among those stock. A post on those stocks will be available later today.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC

No comments: