Sold Fiserv Inc.

We sold FISV today and redeployed the cash. FISV has had three quarters of declining revenue and earnings growth. See PERT A graph (above). Also, FISV’s market overlaps with two other portfolio holdings — JKHY and SNV. We used the above stock selection guide in making this decision.
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Sold Johnson Controls, Inc.

We sold JCI today and redeployed the cash. Although a still quality stock, revenue growth has been slowing and the project average return dropped to 6.5%. We used the above stock selection guide in making this decision.
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Portfolio Rebalancing

We are finally moving close to positive territory for portfolio return for the year in spite of or losses in UTStarcom and Pfizer. See year-to-date return report. Pfizer will most likely bounce back, but a recovery by UTStarcom is much less certain. Internal rate of return for the portfolio for the year to date is 0.5%. The S&P 500 is up 1.9% for the same period.

Most companies have reported their third quarter earnings. This is a good time to take a close look at the Moose Pond portfolio. The stock selection guides (SSGs) for all holdings have been revised. Go to the portfolio summary and click on the links for each stock to see the individual SSGs. Also, look at the current diversification report.
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Portfolio Summary Updated

The Moose Pond Investors portfolio has an average projected average return (PAR) of 14.2% and an average quality rating of 72.6 (out of 100). Both the portfolio summary and the related stock selection guides have been revised. Follow the links in the portfolio summary to open the SSGs.

You can cross check our calculations for PAR with the club dashboard from Manifest Investing.

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.

Carnival Corp. & PLC

The October 2005 Better Investing magazine featured Carnival Corp. (CCL) as a stock to study. Here is a PowerPoint presentation and a stock selection guide analyzing Carnival from the NAIC DC monthly stock to study presentation. The presentation is also here in pdf format.

Here is the bottom Line: Carnival is a quality stock. Value Line financial strength is B+ and earnings predictability is 80, and RQR is 69.6 It currently has an upside/downside ratio of 3.5 and a relative value is 110. It has an estimated total return of 17.8% and projected average return (PAR) of 12.8%. Carnival is a hold. It might be a buy if the PAR was a little higher (greater than 15%).