11/5/07 Stock Purchase Update - Only Holding The Biggest Gainer

In my 10/29/07 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 $3,311 for a 18.9 % gain, for a new high. As of 11/3/07, the portfolio achieved a new high of $3,543 for a 20.2% gain. I had owned AVT for 5 months before selling it for a 5.1% gain,TEX for 4 months before selling it for a 3.9% gain and SJR for 5 months before selling it for a 22.8% gain. Here's the current status on the one remaining stock:

	My Wealth Builder 5/28/07 Buy List
Stock	Shares	Purchase Price	Current Price 11/2/07
Potash (POT)	50	$71.39	$121.30
Shaw Communications B (SJR)	100*	$21.755	sold @$26.85
Avnet (AVT)	200	$38.21	sold @ $40.15
Terex (TEX)	50	$82.56	sold @ $85.77

* 2 for 1 split on 8/3/07

Overall, I am very happy with the performance of these four stocks, given the volatility in the market. Since the last update, POT was up $4.63. I have owned POT since June, 2007 and it has contributed significantly with a 69.9% gain in that time.

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 identified a new set of stock purchases in 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. The market activity continues to be 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.

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

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