Real Money Portfolio – Update 5/5

This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.

The great thing about stocks that usual find their way into my portfolios – is that when the move they move.  Unfortunately it cuts both ways, but this time it’s in the direction we like.  For the week, the Real Money Portfolio was up 3.2% v. 0.9% for the S&P 500.  Also by the end of the week, the portfolio was back to 100% invested.  I think this is the third time this year the portfolio has been fully allocated.  In the previous occasions, the week after moving to 100% were disasters.  Let’s hope this time is different – my famous last words.

Let’s take a look at the moves from last week.

First, let’s look at PCU.  Last week I said the following, “I have a nice profit in PCU and I am going to give in a little more leeway down to the second trendline.  This follows the good old – let your winners run theory.”  This worked perfectly as PCU pulled back on Monday and Tuesday.  Wednesday’s move confirmed Tuesday as a pivot low and additional gains were tacked on Thursday and Friday.  PCU closed the week up 3.5%

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RIO followed PCU’s script and powered to a new closing high by Friday.  I added to RIO’s position on Friday.  I would have added on Thursday, but I wanted to wait until their earnings were released which was after the bell on Thursday.  RIO earnings were above consensus and all systems are looking good.

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Stocks typically run in packs.  BHP, PCU and RIO are definitely doing that.  I added BHP on Thursday’s close.  This was the day before Merill Lynch suggested that BHP might be a Private Equity target

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My final move for the week, which was actually the first move, was adding CRESY.  This stock has been a thorn in my side all year.  The stock is up 32% year to date, but I haven’t been able to get on the right side of this trade.  As usual, it is doing what it does best – suck me in and then sticking it to me.  Fortunately, I only added a 10% position.

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It was a busy week.  The portfolio is now fully invested.  A pull back is definitely around the corner.  I am just hoping that we can build a little more cushion beforehand. 

Here are the Year to Date results and transactions: Real Money 5.7% v S&P 500 6.2%

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