Monday, October 01, 2007

10/1/07 Stock Purchase Update - New High For Portfolio

In my 9/24/07 stock purchase update, I wrote about how my stock buy selections of Terex (TEX), Potash (POT), Shaw Communications (SJR) and Avnet (AVT) were performing. In that update, the portfolio had benefited from the Fed rate cut and was up $2,290 for a 13.1 % gain, only slightly down from a previous peak gain of $2310 and 13.2% on 7/23/07. As of 9/28/07, the portfolio continues to benefit from the September 18, 2007 Fed rate cut and stands at a $2,745 profit for a 15.7% gain. For reference, Avnet was closed out for a $388 gain (5.1% return since April, 2007) since my system dropped it off the buy list in the week ending 9/7/07 . Here's the current status on the positions in the three remaining stocks:

My Wealth Builder Buy List
StockSharesPurchase Price

Current Price

Terex (TEX)50



Potash (POT)50



Shaw Communications B (SJR)100*



* 2 for 1 split on 8/3/07

Overall, I am still happy with the performance of these four stocks, given that the overall market had a signifcant drop in August. Since the last update, TEX and POT were up significantly, and SJR was flat. The portfolio of these three stocks have returned 23.9% in the four months I have owned them. POT has contributed significantly with a 48.1% gain in that time. I owned AVT for 5 months before selling it for a 5.1% gain.

I continue to be impressed with my commitment to stay invested in these stocks, in spite of the market volatility. In the past, I would have closed out the entire position with this level of volatility. Given the performance of the portfolio, I am glad I held my positions instead of allowing myself to be whipsawed by the market each week.

The recent events (credit crunch, central bank interventions) originally had convinced me that the bull market is in its last stage, and I was considering closing out these positions during the next significant rally. However, the Fed rate cuts of 0.5% for the discount and Fed funds rate of September 18, 2007 lead me to believe the bull market will last about another year. So I will be updating my stock picks from the modified Unemotional Investor Growth system around October 7, 2007 and add new purchases in the coming weeks.

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

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

Copyright © 2007 Achievement Catalyst, LLC

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