Monday, January 12, 2009

Stock Buy List Update - 1/12/09

With the beginning of a new year, I've decided to update my buy list, in anticipation of a good buying opportunity in the future. For background, see My Stock Picks for Q1 2007 for a description of the Modified Unemotional Investor Growth system. The Top 5 system is a direct application of the Unemotional Investor Growth system described in the book The Unemotional Investor by Robert Sheard.

I was disappointed that the system yielded only one stock for my buy list. In this update, no stocks passed all the Modified criteria and only one of the Top 5 picks appealed to me. Since I expect a market bottom is near, I will start reviewing the list at least every two weeks, in case the system identifies additional buys.

My Wealth Builder Buy List - 1/12/09
StockSystem UsedTarget PriceTarget Shares
Southwestern Energy (SWN)

Top 5

less than $23


At this time, I plan to sell out of the money puts (strike price 17.5 to 22.5) on Southwestern Energy. Since I already own 50 shares, this approach will let me profit if the stock moves up or buy at a lower price if the stock moves down. My other option is to buy the stock outright if there is a market correction.

Disclosure: At time of publication, I own shares Southwestern Energy in our trading account.

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.

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