Bought More JKHY & WMT
We purchased additional shares of Jack Henry & Associates (JHKY) at $17.85 and Wal-Mart (WMT) at $45.09. This increases our holdings in these companies to 4.4% for each. We are 97% invested.
Buying ACS, JKHY and WMT
We purchased additional shares in Affiliated Computer Systems (ACS) this week. ACS has a 5-year projected average return (PAR) of 17.5% and a quality rating of 71. It now is 4.5% of the portfolio. We purchased an initial (3%) position in Jack Henry & Associates (JKHY). JKHY has a PAR of 16% and a quality rating of 61. We plan to purchase an initial position in Wal-Mart Store (WMT) next week. WMT has a PAR of 16.5% and a quality rating of 85. Here are the current stock selection guidess for ACS, JKHY, and WMT. We can compare future results against the assumptions in these SSGs.
The portfolio summary has been updated. The portfolio summary contains links to the related stock selection guides (SSGs). Except for financial service stocks, the SSGs use the preferred procedure. It provides a better guess of future EPS.
Here is the portfolio sorted by projected average return. We need to take a close look at the stocks at the bottom of the sort. O’Reilly Automotive — at the bottom of the stack — remains a quality growth stock. It had a great recent quarter and as a result ORLY is selling near its high average PE. We might want to consider selling it and redeploying the cash.
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Additional Shares Bought
We added to our positions today in PFE, CBH, FISV, BBBY and MXIM. With the additional shares, each company will represent about 6% of the total portfolio.
Recent Transactions
We sold all of our shares in Fannie Mae (FNM) at $54.23. Fannie Mae still might be a good contrarian long term investment, however, we decided to exchange the shares for a more stable, high quality bank. We bought Fifth Third Bancorp (FITB) at $42.93
We purchased additional shares of Pfizer Inc. (PFE) at $26.35.
We also purchased additional shares in Commerce Bancorp Inc. (CBH) at $29.86.
Recent Transactions
Yesterday we purchased an initial postion in Chevron Texaco (CVX). We also sold all of our shares in the NASDAQ 100 index fund (QQQQ) to free up cash for other purchases. We had a net gain in QQQQ of 37% from May 2003.