Monday, February 25, 2008

2/25/08 Stock Purchase Update - Trimming The Portfolio

With the market decline of early 2008, the stock purchase updates have not been as fun to write. However, I am going to remain disciplined and do a weekly update until I sell the positions from the portfolios. Currently, the portfolio is based on a 10/15/07 updated buy list of Potash (POT), Southern Copper (PCU), CNH Global (CNH) and BHP Billiton (BHP) and a January, 2008 stock pick update of Apple (AAPL), Research in Motion (RIMM), Intuitive Surgical (ISRG), Priceline (PCLN), Core Labs (CLB), and Google (GOOG). The total portfolio has a gain of 7.4% due primarily to the strength of Potash and Research in Motion. Unfortunately, AAPL and GOOG continued to decline this week and offset the gains. I also was able to sell three of the stocks that have dropped from the buy list - PCU, BHP and CLB. In addition, I sold RIMM because gain may not be sustainable since the good news (subscriber growth) didn't lead to increased revenues. Here's the current status of the stocks in the portfolio:

My Wealth Builder 10/15/07 Buy List
Stock [purchase date]SharesPurchase Price

Current Price 2/22/08

Potash (POT) [6/7/07]50



Southern Copper* (PCU) [11/13/07]40


sold 2/19/08 @ 109.05

CNH Global NV** (CNH) [11/13/07]50



BHP Billiton*** (BHP) [11/27/07]50


sold 2/19/08 @ $73.98

*On 1/18/2008, the system gave a sell signal for PCU.
**On 2/1/2008, the system gave a sell signal for CNH.
***On 2/15/2008, the system gave a sell signal for BHP.
I will try to sell CNH during an upcoming market rally, hopefully above the purchase price.

My Wealth Builder
January, 2008 Buy List
Stock [purchase date]SharesPurchase Price

Current Price 2/22/08

Apple (AAPL) [1/17/08]25



Research in Motion (RIMM) [1/17/08]25


sold 2/22/08 @ 103.23

Intuitive Surgical (ISRG) [1/18/08]20



Priceline (PCLN) [1/18/08]25



Core Labs* (CLB) [1/25/08]25


sold 2/19/08 @ $121.67

Google (GOOG) [1/25/08]20



Google (GOOG) [2/1/08]10



*On 2/8/2008, the system gave a sell signal for CLB.

The market activity appears to stabilized with a short term bottom. As of the close on 2/22/08, the Dow, Nasdaq and S&P 500 indices were respectively down 6.27%, 13.16%, and 7.55% year to date, still off from the lows of the year.

I continue to believe that the probability of a recession in 2008 is relatively high. The multitude of negative factors will eventually outweigh any actions by the government and financial institutions. Originally, the Fed interest rate cuts and other actions led me to expect that the bull market would last through summer, 2008. However, the economic data in early 2008 may cause the bull market to end earlier. For either case, I expect the market to continue to be choppy in 2008. At this time, I plan to sell CNH and continue to hold the balance of the portfolio. However, with the exception of Google, I do not plan to add any more to the amounts that I have already invested in the above tables.

Full disclosure: I own all the stocks mentioned in this post that are not indicated as sold.

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 © 2008 Achievement Catalyst, LLC

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