Monday, October 08, 2007

10/8/07 Stock Purchase Update - Slowly Closing Out This Buy List

In my 10/1/07 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 $2,745 for a 15.7 % gain, for a new portfolio high. As of 10/8/07, the portfolio was down slightly a $2,611 profit for a 14.9% gain. This past week, Terex was closed out for a $160 gain (3.8% return since June, 2007) since my system dropped it off the buy list in the week ending 9/28/07 . 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 overall market had a significant drop in August. Since the last update, SJR was up slightly, and POT was down slightly. I have owned these two stocks since June, 2007. POT has contributed significantly with a 45.2% gain in that time. SJR has contributed with a 20.7%. I 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.

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 have updated my stock picks from the modified Unemotional Investor Growth system, which I will publish on October 15, 2007.

At this point, I am not making purchases from the new stock pick list. Since the market rally has not been very strong yet, there may be a pull back, allowing for a buying opportunity.

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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