Monday, February 04, 2008

2/4/08 Stock Purchase Update - Summary of Old and New Purchases

In my 1/28/08 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 slightly to a gain of $1,479 for a 10.4% return, due mainly to a jump in POT. As of 2/1/08, the portfolio had rebounded further to a gain of $2,980 for a 20.9% return, due mainly to a jump in POT. The new purchases of PCU, CNH and BHP are down $550 for a 5.1 % loss. Both PCU and CNH continue to have large losses of 9.1% and 9.4% respectively. BHP has returned to a gain this week. Here's the current status of these stocks that I own in the portfolio:

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

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



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

Separately, I have made purchases from the January, 2008 stock pick update of the three stock analysis systems I use. As of 2/1/08, the new portolio is down $757 for a loss of 2.3%.

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

Current Price 2/01/08

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



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



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



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



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



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



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



The market activity appears to stabilized with a short term bottom. As of the close on 2/1/08, the Dow, Nasdaq and S&P 500 indices were down 4.4%, 4.9%, and 3.8% year to date, recovering about half the losses in 2008.

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 will continue to hold this 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.

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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