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.