Monday, January 31, 2011

Monster Portfolio 2011 Week 3 Results

MONSTER PORTFOLIO 2011

Balance: Inception 01/07/11
$1977.32 Stock
$13.65 Cash
Total $1990.97

Balance: Week 3 01/31/11
$1596.40 Stock
$352.45 Cash
Total $1948.85

I Don’t even know what to call this mishap, but peer lack of discipline. Excluding cash in flow of $51.00 we have ourselves a balance of $1897.85. I made a terrible mistake and I have paid the consequences. From this mistake the Monster Portfolio 2011 is down since inception to    -4.67%

What happened was WFT reported earnings on Tuesday and basically missed the analysts estimates. I thought I would be smart and I sold off all my shares of WFT on Tuesday to watch the darn thing rally the next day. I listened to the conference call and realized their earnings weren't as bad as the numbers that were given. On top of that I decided to buy Apple the same day because I was angry about WFT. Apple was a good buy, but I missed an opportunity to make big bank on WFT. I misjudged the earnings since then the stock has rallied big time. The current close as of today would have put this portfolio excluding cash inflow at $2068.37. I made an $170.52 mistake. Hey I’m not perfect, but I sure wish I was. LOL! The lesson of this story is don’t try to sidestep a down turn until you get the facts. On the safe side I should have sold half of my holdings as I could have taken advantage of the rally in WFT over the past few days.

On a good note I did have an opportunity to buy some Apple stock. I have decided to ease up a bit and spread out my holdings a touch. It’s hard to maneuver with $2,000. I sold off WFT and I can’t take that mistake back. I bought some Apple last week and picked up some Westport Innovations (WPRT) today before earnings. The price of WPRT is outrageous at $15.77 and the stock should be much higher. They are set to report earnings on Monday February 7th so I have decided to buy early before the news. I have a lot of work to do to get back on top, but individual stocks are volatile and that is the name of the game. 3 stocks should spread out the risk a touch, but a full diversified portfolio will take a minimum of 5 stocks.

I will come back from this beat down I promise you that!  Don't count me out just yet!

Since Inception: -4.67% overall

Current Holdings:

Apple (AAPL)
Cosi Inc. (COSI)
Westport Innovations (WPRT)

Happy Trading!

Clay-

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