Friday, September 6, 2013

Chump IRA Update - September 6, 2013

Here is a snapshot of the holdings in the portfolio:


I've circled the stocks that I'm keeping a closer eye on due to valuation.  I'm certainly not adding to any of these at present, and am considering reducing or selling my positions in EMR, DOV, and FDO.  As posted previously, hoping for an FDO acquisition offer, but I won't wait much longer.  And while MCD and KO are overpriced a bit, they tend always to be overpriced, and I have less than full positions in both, hoping for a big pullback to add.  I'd like to keep these blue chippers in the portfolio long term.  We'll see, but I may try selling some covered calls on DOV and EMR next week.

This week I added a bit to SO, PM, and O.  The high yield stocks have been getting hit as interest rates rise.  This presents a nice buying opportunity.

Performance Summary:

I started the portfolio in August, 2012, or more accurately, nearly finished and started measuring results vs. the S&P 500.

Here is where I stand today:

S&P 500 = 19.90%
Chump = 20.46%

Cool heh?  September makes me nervous, the market always seems to correct, so I'll look seriously to raise some cash by selling or trimming next week, likely FDO.  And just for fun, I bought two March 22 puts on Tesla Motors (TSLA).  Ostensibly as a hedge, but as a value investor, I just have to laugh at their stock price and market cap.  The puts cost me $2200, and I'm down around $400 on the "investment," but I enjoy having a short position in this company!

That's all for now,

Chump

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