Well, the market had its first losing week in quite some time. Gold tanked to $1270 and the rebounded back to just over $1310 this week. What we saw was just what I told you to expect, volatility on light volume. It was so wild this week, the SP500 had its worst week since August 2006. But there is a silver lining, our Magic Money Portfolio enjoyed a nice gain this week. The portfolio was up 0.862% ($454). Making money is always a good thing.
The last time I told you ENTG was sitting dangerously close to its stop-lose price. Well, it fell through that price and I sold the position. Yes, I sold it at a small loose ($170 or -3.6%) but as you can see from the portfolio performance that small lose was inconsequential to the overall performance. When things go bad you HAVE to get out! On the other hand, XRX had a nice little pull back, 10% off its recent high, so I added another 100 shares to the portfolio. By the end of the week XRX made the portfolio a little extra money.
WEN had great week. They reported earnings that beat the street estimates and they raised their dividend by 25%. When the rest of the market was trying to decide in which direction to go, WEN just kept going up and is now more than a $1.00 higher than the portfolio purchase price. And in another stock note, AA shot up $0.31 on Friday after the news that Russia was going to stock pile aluminum. AA also went ex-dividend on Wednesday. I will be looking for a pull back to around $8.00 for AA to possibly add to the portfolio position. Could this be a beginning to the long awaited economic recover? Only time will tell.
I wish I could say things will settle down next week but I wouldn't bet on it. We are still in August and by the very nature of the beast you should expect to see more volatility on light volume. Despite all of that I continue to look for those deals that my model says it is time to buy. I don't have anything new this week but keep watching because you never know when an opportunity will pop up. Right now, the portfolio is still roughly 30% cash.
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)
Magic Money Machine Portfolio (09 August 2013)
Cash: $ 15,366.00
1000 shares IAG- $ 5.01 $ 5,010.00
500 shares AA - $ 8.22 $ 3,985.00
100 shares DUK - $ 70.77 $ 7,077.00
200 shares GE - $24.25 $ 4,850.00
200 shares SPLS - $16.95 $ 3,390.00
700 shares WEN - $7.91 $ 5,537.00
600 shares XRX - $10.03 $ 6, 018.00
Total $ 51,358.00
+ 2.72%
Pending AA Dividend disbursement. $ $15.00
Effective Total $ 51,373.00
+ 2.75%
Please note that the account will not receive the AA Dividend until August 25th 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 - $16.10 (updated 26 July 2013)
WEN - $5.50
XRX - $8.90
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