Monday, December 31, 2007

12/31/07 Stock Purchase Update - A New High

In my 12/24/07 stock purchase update, I wrote about how the 10/15/07 updated buy list of Potash (POT), Southern Copper (PCU), CNH Global (CNH) and BHP Billiton (BHP) was performing. In that article, the portfolio had rebounded to a gain of $3,404 for a 23.9% return. As of 12/28/07, the portfolio had achieved a new high with a gain of $4,098 for a 28.8% return, based primarily on the strength of POT, which had a share price gain of $12.31 last week. The new purchases of PCU, CNH and BHP are only up slightly at $458 for a 4.3% return. Both PCU and BHP continue to have small losses. Here's the current status of the stocks I own in the portfolio:

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

Current Price

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



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



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



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



The market activity continues to be concerning, with either narrow breadth or a high number of new lows. I 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. However, the Fed interest rate cuts and other actions lead me to expect that the bull market will last through summer, 2008, although it may be choppy. At this time, I do not plan to add any more to the amounts that I have already invested in the above table.

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


Anonymous said...

I have been looking at PCU for some time. Have you been pleased with it?

Best Wishes,

Super Saver said...


My Modified Unemotional Investor System still rates PCU a buy. However, it is still below my purchase price of $108.24 (as of Jan. 9, 2008). So I'm not happy yet:-) Fortunately, I didn't buy PCU at its peak of $143.25.

At this point, I will continue to hold PCU. However, its performance will likely be correlated to whether a recession occurs or not.