Ah, the market giveth and it taketh away. Yes, indeed, it was another volatile ride in the markets this week. Wednesday took a bit out recent portfolio gains and the Thursday and Friday gave us some of it back. I fully expect the volatility we've been seeing to continue this week. After Labor Day the market should settle down when Wall Street gets back from its summer vacation. Ustinov so you know, this is pretty typical market behavior for August.
I probably need to talk about Staples (SPLS) right about now. SPLS took it n the chin this week. The stock lost more than $2.50 per share on the week or just under 16%. So what happened? The company reported its quarterly earnings and missed street expectations! Particularly worrisome to Wall Street was same store sales declined. If you couple that with the general beating all retail stocks have been taking, the market reacted quite violently driving SPLS down. SPLS's stock price plummeted through its 90-Day SMA finally find support at its 200-Day SMA. I could sell the stock right now, eating the lose and using the lose to offset taxes on the gain BUT despite the weak quarterly report, I believe SPLS is still a good company. So given the nature of August in the market and the fact the SPLS is still above its 200-Day SMA I am holding on to it for a little while to see what it does in the short term. It is also worth noting here that the stock is wildly oversold at this point.
Shares of DUK took a little bit of a hit on the week too. Nothing major happened to the company. DUK is as rock solid as ever but it is what is considered a dividend stock, it tend to react to what is going on in the bond market. Since bonds feel last week driving interest rates up, DUK followed suit. DUK also went ex-dividend $0.78 pr share last week too. The portfolio will be seeing a $78.00 addition to the cash balance on the payment date. And just for the record AA paid its dividend on Saturday so the portfolio picked up another $15.00 in cash.
The rest of the portfolio held its own particular IAG which continues to benefit from the recent rise in gold prices. Gold is quickly climbing back to the $1400 per ounce level. All in all the portfolio is performing well with gains of just under 3.5% since its inception in early June. Market performance as measured by the SP500 is up just shy of 1.5% so basically the portfolio is outperforming the market by more than 2X. I'm still looking for other investment opportunities but still have not found anything worth buying.
07 June 13 - 1000 shrs IAG @ $5.29 per share. (BUY)
13 June 13 - 500 shrs AA @ $8.20 per share. (BUY)
21 June 13 - 100 shrs DUK @ $65.58 per share. (BUY)
28 June 13 - 200 shrs GE @ $23.19 per share. (BUY)
28 June 13 - IAG traded ex-dividend $0.125 per share
11 July 13 - 100 shrs SPLS @ $16.67 per share (BUY)
11 July 13 - IAG div. disbursement, $0.125 per share, $125 (INCOME)
18 July 13 - 700 shrs WEN @ $6.81 per share (BUY)
19 July 13 - 100 shrs SPLS @ $16.38 per share (BUY)
26 July 13 - 500 shrs ENTG @ $9.53 per share (BUY )
26 July 13 - 500 shrs XRX @ $9.69 per share (BUY)
06 August 13 - 500 shrs ENTG @ $9.23 per share (SOLD)
06 August 13 - 100 shrs XRX @ $9.97 per share (BUY)
15 August 13 - 100 shrs SPLS @ $16.73 per share (BUY)
24 August 13 - AA div. disbursement, 0.03 per share, $15.00 (INCOME)
Magic Money Machine Portfolio (24 August 2013)
Cash: $ 13,698.00
1000 shares IAG- $ 6.71 $ 6,710.00
500 shares AA - $ 8.05 $ 4,050.00
100 shares DUK - $ 66.35 $ 6,635.00
200 shares GE - $23.78. $ 4,756.00
300 shares SPLS - $14.20 $ 4,260.00
700 shares WEN - $7.95 $ 5,565.00
600 shares XRX - $10.04 $ 6,024.00
Total $ 51,673.00
+ 3.346%
Pending DUK Dividend Disbursement. $ 78.00
Effective Total $ 51,751.00
+ 3.502%
Please note that the account will not receive the DUK Dividend until September 17th at which time we can add it back into the cash balance.
Stop-loss list
IAG - $3.90
AA - $ 7.70 (updated 09 August 2013)
DUK - $ 65.00 (updated 09 August 2013)
GE - $22.75
SPLS - no longer valid
WEN - $5.50
XRX - $8.90
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