Monday, October 22, 2007

10/22/07 Stock Purchase Update - Declined With Market Weakness

In my 10/15/07 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 was still benefiting from the Fed rate cut and was up $3,078 for a 17.6 % gain, for a new high. As of 10/19/07, the portfolio was down slightly to $2,788 for a 15.9% gain. I had owned AVT for 5 months before selling it for a 5.1% gain and TEX for 4 months before selling it for a 3.9% gain. Here's the current status on the positions in the two remaining stocks:

My Wealth Builder 5/28/07 Buy List
StockSharesPurchase Price

Current Price

Potash (POT)50



Shaw Communications B (SJR)100*



Avnet (AVT)200


sold @ $40.15

Terex (TEX)50


sold @ $85.77

* 2 for 1 split on 8/3/07

Overall, I am still happy with the performance of these four stocks, given that the volatility in the market. Since the last update, POT was down $6.00, and SJR was flat. I have owned these two stocks since June, 2007. POT has contributed significantly with a 49.7% gain in that time. SJR has contributed at 21.4%.

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. Last Monday, I provided my 10/15/07 updated buy list from the modified Unemotional Investor Growth system.

At this point, I have not made any purchases from the new stock pick list, since the market rally has not been cosistently strong. Last week's market drop is also concerning. I am staying on the sidelines until there is a stronger buy signal.

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

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

Copyright © 2007 Achievement Catalyst, LLC

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