SSGs Updated
The stock selection guides (SSGs) for each of the stocks in the portfolio have been updated as of June 30. Follow the links in the portfolio summary for the current SSGs.
The PERT Chart and Trend Report also have been updated. The PERT chart is sorted by total return while the trend report is sorted by projected average return.
Mid-Year Report
Unit share price on June 30 was $13.14 up only slightly from the $13.09 at the beginning of the year. The IRR was 0.7%. In comparison, the S&P 500 was up 1.76% for the same six month period. (Actual gain for the S&P will be slightly higher with dividends.)
Top five advancers for the first half of 2006 were: Occidental Petroleum, OXY (+29.4%), Investors Financial, IFIN (+20.2%), FactSet Research Systems, FDS (+15.2%), Chevron, CVX (11.1%), and Maxim Integrated products, MXIM (+5.0%). The five biggest decliners for the same period were: INTC (-20.2%), Amgen, AMGN (-17.6), Affiliated Computer Systems, ACS (-13.8), Marsh & McLennan Companies, MMC (-14.4), and Stryker, SYK (-8.0%).
With the possible exception of MMC, the fundamentals of the decliners remain intact and don’t warrant sale of these stocks. The wide range reflected by the return of the top and bottom stocks for 2006 underscores the importance of diversification and adding regularly to the portfolio.
June Transactions
On Wednesday, we added 18.8 shares of SNV and 23.9 shares of MXIM. We closed our positions in HDI (20.1 shares) and FITB (39.9 shares). On Friday, we added 11.4 shares of JKHY, 9.8 shares of LOW, 12.1 shares of AMGN, and 10.3 shares of COF.
This reduces the number of companies in the portfolio to 24. We only have 1.1% in cash. UTSI jumped for $6.50 to $7.79 this week. So maybe we should hold a while more.
Here is a dashboard for the portfolio reflecting these transactions.
Sold Fifth Third Bancorp
FactSet Research Systems, Inc. (FDS)
SSG and PERT A | Google Stocks | Company Website
We sold Fifth Third Bancorp on June 28, 2006. FITB’s performance has been subpar for some time. It has also had a defection of senior management people. The proceeds from the sale have been redeployed to other financial stocks in our portfolio that have brighter prospects.
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Sold Harley Davidson
Harley-Davidson, Inc. (HDI)
SSG and PERT | Google “Stocks: HDI” |Company Website
We sold Harley Davidson on June 28, 2006. Although a high quality company, HDI is no longer a growth company. Projected average return is under 8%. The proceeds from the sale were invested in other companies in the portfolio with better long term prospects.