Online Journal for the Moose Pond Investors Club

Report for October 2004

Unit Value is $12.051
Annualized Internal Rate of Return (IRR): 2.2% YTD and 6.7% since Nov. 2000
Summary Report | PERT | Trend Report | Offense Report | Defense Report

At the end of October, the Moose Pond Investors portfolio had the following weighted averages: projected total return of 21.4%, projected average return (PAR) of 16.1%, upside / downside ratio of 4.6 to 1 and a relative value of 92.2. These are all very good averages. The portfolio has 8% of its assets in cash, part of which we will deploy this month.

Defense and offense alerts.*  Several of our stocks have fallen short of the sales growth targets for the trailing twelve months. (See defense report above.) These stocks include Fannie Mae, Affiliated Computer Services and Harley-Davidson. One other stock in the portfolio to watch closely is UTStarcom.

* A defense alert means that a stock’s current sales or earnings growth has fallen below the growth rates that were projected for that stock. We look at changes in growth rates for the both current quarter and the trailing twelve months. In both cases, we compare current sales and earnings with the corresponding period on year earlier. An offense alert means that a stock’s projected average return has fallen below our desired return for that stock.

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