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US Stock Trade and Portfolio Update

February 16th, 2007 at 08:56 am

This month I selected VRGY from the MagicFormula listing to add to my "Little Book That Beats The Market" Portfolio of US Shares (100% geared). I bought 270 VRGY @ $18.29. My US Stock Portfolio currently stands as:
Symbol P/E Last Shrs Trade Date Paid Comm Value Gain
HRB 25.28 23.83 200 28-Jun-06 24.16 130 $6,074.43 -$ 214.12 - 3.40%
MOT 13.14 19.24 265 24-Jul-06 18.98 130 $6,498.34 -$ 42.18 - 0.64%
MSFT 25.13 29.46 200 21-Aug-06 24.64 130 $7,509.56 $1,098.65 +17.14%
ASEI 24.67 55.95 100 18-Sep-06 49.51 130 $7,131.02 $ 690.80 +10.73%
PWEI 4.11 33.10 150 13-Oct-06 33.29 130 $6,328.07 -$ 166.32 - 2.56%
OVTI 9.72 12.59 300 13-Nov-06 16.47 130 $4,813.92 -$1,613.56 -25.10%
EPIQ N/A 17.98 320 11-Dec-06 15.65 130 $7,333.16 $ 820.29 +12.59%
CRYP 12.23 24.91 200 10-Jan-07 23.92 130 $6,349.73 $ 122.36 + 1.96%
VRGY N/A 18.66 270 14-Feb-07 18.29 130 $6,421.36 -$ 2.67 - 0.04%
9 symbols Total(AUD): $58,459.61 $ 693.24 + 1.20%


As I intend to build up a portfolio of 18 stocks, and then start selling the oldest holding each month and replacing it with a new pick, I'm not doing much investigation of the individual stocks I pick each month. Basically I just run the MagicFormula filter and select half a dozen stocks that have the best looking stats. I exclude any stocks that I feel may have their performance temporarily boosted by the resources boom - ie. any railroad, oil or mining stocks. I then have a look at the 1-yr chart for each of the stocks on my short list, and exclude those that appear to be in a downtrend or starting to drop. With a total holding of 18 stocks I think I'll have enough diversification to basically just pick a random selection of the stocks thrown up by the MagicFormula search tool. After all, it's only supposed to list stocks that have met its "Value" criteria.

My US Stock Portfolio now has the following composition:

Industries:


Stocks:

2 Responses to “US Stock Trade and Portfolio Update”

  1. baselle Says:

    A lot of technology stocks here. And with the global housing market turning decidedly chilly, a building materials stock is an interesting choice.

  2. enoughwealth Says:

    Just bear in mind that this isn't intended to be a "balanced" portfolio - it currently only comprises around 10% of my total investment in equities (check out previous posts on my Australian Stock Portfolio composition), and when fully invested with around 18 lots of $5K invested it will still only make up around 15% of my total allocation to direct equity investment. I'm happy for it to be overweight in technology stocks as there are practically none of these in my Australian holdings.

    I've avoided stocks that I think may have just been thrown up by the MagicFormulaInvesting search engine due to temporary earnings lifts eg. resources stocks, rail transport etc. But aside from that I've just taken a few stocks from the list each month and had a look at their 12 month price chart to check they're not still in a sever down-trend, or have recently shot up in price and look as if they may drop back. I prefer a stock that appears to have bottomed out and have started to gather some price support.

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