Review of our holdings
As per my note yesterday, it's time to review our status.
One must keep score regularly - count your beans frequently.
Let me just get right to the point and explain later:
Stock Avg.Cost Price as of 5/15 Gain/Loss % Target
RICK $ 4.80 $ 6.08 +26.66 % $10.10
BTYH $ 1.46 $ 1.33 - 8.90 % $ 3.60
IDWD $ 0.89 $ 1.15 +29.21 % $ 2.75
MATK $28.70 $26.41 - 7.98 % $42.00
IGLD $ 6.55 $ 6.15 - 6.10 % $ 9.00
UTK $14.35 $16.30 +13.59 % $24.00
AUTO $ 1.09 $ 0.98 -10.09 % $ 2.56
The last time we measured our performance was at the end of the first quarter (see my note dated 3/31). For those who are closely following my blog, I would like to further explain my goals. Most importantly, my goal is to beat the market. When I say market, I mean both big (SP500) and smaller (Nasdaq composite) markets. I think it is wise to remind you what these markets represent:
Nasdaq stock market (this is where we fish) - The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two (2) separate markets, namely the Nasdaq National Market (Nasdaq composite), which trades more established, active securities (about 3,000 companies) and the Nasdaq Small Cap Market that trades smaller, emerging growth companies (about 2,000 companies).
S&P 500 Index - A group of 500 large, widely held common stocks that measures the general performance of the market (the value of these 500 companies represent about 87% of all stock market value). Understand that there are over 10,000 publicly traded companies, which means these 5% of elite companies control 87% of all money being traded.
In the "free market" system, there are no difference between people and companies. I am sure you agree that the top 5% of people in the U.S. control 90% of all the money being traded.
Believe me, you want to be in the top 5% - period.
Membership in this club has its previleges.
When I try to gauge myself, I will use both SP500 Index and the Nasdaq Composite Index - eventhough we mostly hunt in the Nasdaq world. Why Nasdaq? Because these are faster growing, smaller, newer companies. I fully understand that there are more risks in these companies. But how can you beat the market by owning GE? GE is the market. They are not going to bankrupt anytime soon but they are not going to double in size anytime soon either. I am looking for market beating, turbo performance in my stocks.
The base of our performance gauge is January 1st, 2006.
Here is our performance thus far:
Index NAV as of 1/1 NAV as of 5/15 Performance %
SP500 1,248.29 1,294.50 + 3.70 %
Nasdaq 2,205.32 2,238.52 + 1.50 %
AceTrader 1,315.32 1,652.47 +25.63 %
And yes, we have won our third inning as well (3-0). Fourth inning starts tomorrow and ends on 6/30/06. Am I satisfied with the results so far? Yes and no. Because this game can change very quickly. Our stocks can move 10% in a day (sometimes in an hour) up or down. That's why we have to diversify. I need to diversify more. I need at least 12 different stocks. As you can see I only have 7. Basically I am betting big on the ones I have. The list above is ranked by the size of my holdings - my largest bet is RICK and the smallest is AUTO.
If you have noticed, I went as far to give you my target estimate for each stocks. When I get a chance, I will explain where I got those numbers. Now that you have this, do not call me and ask "should I buy xxx at this price?" One more advise: always sell 33%-50% of your holdings if it should double to lock in your gains. Don't be too greedy. And of course I will tell you when I sell.
RICK just announced a blow-out earnings report today as I predicted. However, the stock went down. Please do not worry. Some investors always sell on the good news - suckers. Do you see my target for RICK this year? With this information, you do what you need to do. I just bought more today for my trading account. Let's see.
BTYH released good earnings as well today. This will move up as well. See my target on this too. I added more of this two days ago. Let's see again.
You know that I shorted KRY in my trading account. Shorted on 4/25 at $5.91/sh. Can you guess where it is today? Try $4.08/sh (already made 44.85% on this). Sold half today at $4.05 to cash in the gain. I think it will go down further. I have an order to cover at $3.29/sh (if this happens it is a 80% profit!). Gold is finally taking a rest as I explained in previous pages. As I've said before, this type of resting can give you a big profit!
Tomorrow, the market will be up. It is a bounce. It will rain too.
The market looks sick (caught a cold?). If this continues, I will get a little nervous.
I am too tired. Good night ...
One must keep score regularly - count your beans frequently.
Let me just get right to the point and explain later:
Stock Avg.Cost Price as of 5/15 Gain/Loss % Target
RICK $ 4.80 $ 6.08 +26.66 % $10.10
BTYH $ 1.46 $ 1.33 - 8.90 % $ 3.60
IDWD $ 0.89 $ 1.15 +29.21 % $ 2.75
MATK $28.70 $26.41 - 7.98 % $42.00
IGLD $ 6.55 $ 6.15 - 6.10 % $ 9.00
UTK $14.35 $16.30 +13.59 % $24.00
AUTO $ 1.09 $ 0.98 -10.09 % $ 2.56
The last time we measured our performance was at the end of the first quarter (see my note dated 3/31). For those who are closely following my blog, I would like to further explain my goals. Most importantly, my goal is to beat the market. When I say market, I mean both big (SP500) and smaller (Nasdaq composite) markets. I think it is wise to remind you what these markets represent:
Nasdaq stock market (this is where we fish) - The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two (2) separate markets, namely the Nasdaq National Market (Nasdaq composite), which trades more established, active securities (about 3,000 companies) and the Nasdaq Small Cap Market that trades smaller, emerging growth companies (about 2,000 companies).
S&P 500 Index - A group of 500 large, widely held common stocks that measures the general performance of the market (the value of these 500 companies represent about 87% of all stock market value). Understand that there are over 10,000 publicly traded companies, which means these 5% of elite companies control 87% of all money being traded.
In the "free market" system, there are no difference between people and companies. I am sure you agree that the top 5% of people in the U.S. control 90% of all the money being traded.
Believe me, you want to be in the top 5% - period.
Membership in this club has its previleges.
When I try to gauge myself, I will use both SP500 Index and the Nasdaq Composite Index - eventhough we mostly hunt in the Nasdaq world. Why Nasdaq? Because these are faster growing, smaller, newer companies. I fully understand that there are more risks in these companies. But how can you beat the market by owning GE? GE is the market. They are not going to bankrupt anytime soon but they are not going to double in size anytime soon either. I am looking for market beating, turbo performance in my stocks.
The base of our performance gauge is January 1st, 2006.
Here is our performance thus far:
Index NAV as of 1/1 NAV as of 5/15 Performance %
SP500 1,248.29 1,294.50 + 3.70 %
Nasdaq 2,205.32 2,238.52 + 1.50 %
AceTrader 1,315.32 1,652.47 +25.63 %
And yes, we have won our third inning as well (3-0). Fourth inning starts tomorrow and ends on 6/30/06. Am I satisfied with the results so far? Yes and no. Because this game can change very quickly. Our stocks can move 10% in a day (sometimes in an hour) up or down. That's why we have to diversify. I need to diversify more. I need at least 12 different stocks. As you can see I only have 7. Basically I am betting big on the ones I have. The list above is ranked by the size of my holdings - my largest bet is RICK and the smallest is AUTO.
If you have noticed, I went as far to give you my target estimate for each stocks. When I get a chance, I will explain where I got those numbers. Now that you have this, do not call me and ask "should I buy xxx at this price?" One more advise: always sell 33%-50% of your holdings if it should double to lock in your gains. Don't be too greedy. And of course I will tell you when I sell.
RICK just announced a blow-out earnings report today as I predicted. However, the stock went down. Please do not worry. Some investors always sell on the good news - suckers. Do you see my target for RICK this year? With this information, you do what you need to do. I just bought more today for my trading account. Let's see.
BTYH released good earnings as well today. This will move up as well. See my target on this too. I added more of this two days ago. Let's see again.
You know that I shorted KRY in my trading account. Shorted on 4/25 at $5.91/sh. Can you guess where it is today? Try $4.08/sh (already made 44.85% on this). Sold half today at $4.05 to cash in the gain. I think it will go down further. I have an order to cover at $3.29/sh (if this happens it is a 80% profit!). Gold is finally taking a rest as I explained in previous pages. As I've said before, this type of resting can give you a big profit!
Tomorrow, the market will be up. It is a bounce. It will rain too.
The market looks sick (caught a cold?). If this continues, I will get a little nervous.
I am too tired. Good night ...
posted by Jaewoo | 11:02 PM
6 Comments:
Dear Mygift:
I have done OK but I honestly do not have the correct figure since 1987. I was a casual private investor who did not keep detail records until recently. (thus my blog). Also, most of my investments were in the sector mutual funds and not individual stocks. With the invention of ETFs I no longer invest or recommend mutual funds in general. But to answer your question, there were many years that I outperformed the SP500 by a significant margin. When I did underperform, it was not by a big margin. Thank you for your interest.
P.S: I have been to your blog before too. Keep up the good work.
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