Monday, October 29, 2007

10/29/07 Stock Purchase Update - Only One Stock Remaining

In my 10/22/07 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 $2,788 for a 15.9 % gain, for a new high. As of 10/26/07, the portfolio achieved a new high of $3,311 for a 18.9% 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. Last week SJR dropped off the buy list and I sold it for a 22.8% gain after owing it about five months. Here's the current status on the one remaining stock:

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

Current Price

Potash (POT)50



Shaw Communications B (SJR)100*


sold @$26.85

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 up $9.77, and SJR was slightly up when I sold it. I have owned these two stocks since June, 2007. POT has contributed significantly with a 63.4% gain in that time. SJR has contributed with a 22.8% when it was sold.

I continue to be impressed with my commitment to stay with the system recommendations, 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. Recently, 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 consistently strong. Last week's market activity continues to concerning, with narrow breadth and a high number of new lows. I am staying on the sidelines for new purchases until the market strength and breadth is better.

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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