2 WEEKS IN
I now get up every morning and check the portfolio - which has increased my stress level quite a bit (and I thought I would just be able to forget about the whole thing for one year - which is the idea of the formula).
RESULTS end of market today - 03/09/2006:
MAGIC PORTFOLIO: $51,045 UP 0.6% or $305 (from 50,740)
compare to indexes:
DOW JONES: 10972 -- DOWN 1.1% (from 11093) -- GAP to Magic = 1.7% (not bad)
SP 500: 1272 -- DOWN 1.4% (from 1290) -- GAP to Magic = 1.98%
NASDAQ: 2249 -- DOWN 1.63 % (from 2287) -- GAP to Magic = 2.2%
So far so good - I guess
Best stock is up 20% - my god - PW EAGLE announced good earnings. They make some sort of plastic pipes for the housing industry and they are a big turnaround from 1 year ago - 52 week low was 2.73 now at 24.5 -- where is the formula to find those companies ?????????
Worst performer is Portalplayer - PLAY
They are down 8% (was down 10% 2 days ago). They make the semiconductor for IPODs which is about 95% of their business. If you look at their key statistics - the value of the stock makes absolutely no sense. The are growing like crazy (more than 100% over the last year), and they are making very healthy profits -- P/E ratio is 10-12 // PEG ratio of .6 for crying out loud - they have beaten their estimates 5 straight quarters and they predict good growth coming - but the stock has been dropping from 33 to 23 (I bought at 25.9). They had an IPO 2 years ago and the insiders are cashing in options like crazy -- and then they announce a key partnership with Microsoft and a huge market opportunity for laptops they are looking to be the first one into - PLUS they are still the main supplier and will be in the future for Apple IPODs and NANOs.
They have a short ratio of almost 40% of the floating shares and their average daily volume is almost 10% of the float.
I actually dropped my cash reserve of $5000 and bought more shares -- 1 day later a big Japanese fund announced that they had accumulated 15% of the shares (I think they have been manipulating the share price to buy all these shares cheap) .
Go figure - and I know it was wrong to buy more shares - but that will not be part of my MAGIC portfolio - sometimes you just go for it....
posted by Erik Hochstein @ 1:23 PM
1 Comments:
swim4,
I saw your post over on the Yahoo! board and thought I would comment. I am pretty much in the same boat as you. I have committed about $75,000 for my MFI portfolio. I bought my first stocks on 02Feb06 and am following the buy 7-9 every 3 months. My current stocks include: CALL, FORD, GBEL.OB, HRB, JAKK, MGLN, NOOF, UNTD, and UST. My MFI portfolio has lost approximately $470. It got as low as -$1,100. It seems like everyone (nearly) except me is making money so far. However, I am content to wait and give the system the 3 years time to work before I judge the results. I might recommend that you not check the performance so frequently. It makes it hard to stick with it, when you are showing a loss. [note: my Yahoo! account is set up to track my MFI portofio $, but it is the only one.] For the vast majority of my portfolio I only check prices and update once a month. This eliminates the daily swings that can cause me to gain or loose around $30,000 on some days. I still might gain or lose that in a month, but it is a lot easier to stomach. Stick with it and I hope to see you future updates on your blog.
cheers,
noordelijkoranje
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