Stock Purchase Update - 6/4/07

Last week I wrote about my stock buys and "almost" buys. Specifically, the buys were Terex (TEX), Potash (POT), Shaw Communications (SJR) and Avnet (AVT). I already owned Avnet and had intended to purchase some of my other buys last week. However, two things happened that caused me to delay my purchases. First, all of my buys rose significantly (6-10%) over the last week. Mistakenly, I was thinking there might be a slight pause in the market that would enable me to buy at a lower price. Second, the steep decline in the Chinese stock market, due to a tripling in taxes on stock trades, on Wednesday caused me further concern. So I held off buying, much to my chagrin.

This week, I again expected a slight pullback in these stocks. However, in spite of a 8.6% decline in the Chinese market today, each of my buy stock rose slightly (up to 1.3%) again. So I decided to stop fighting the tape and begin buying with a 50 share purchase of SJR at $43.51. I still remain somewhat cautious on TEX and POT. However, I will continue to look for buying opportunities (read that as small dips) for these two stocks this week.

For reference, two stocks, Game Stop (GME) and Agilent (A) were added to the "almost" buy list. This list of stocks meet all buy criteria except for the relative price strength rating. I will look at the "almost" buy list after I have completed purchases of stocks in my buy list.

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

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