Monster Portfolio 2011 Week 34 Results

MONSTER PORTFOLIO 2011


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

Balance: End of Week 33 09/02/11

$2,341.13 Stock
$100.38 Cash
Total $2,441.51

Since Inception: -7.78%

Back out cash inflow and we have a balance of $1,836.01. 

It was a pretty quiet week for stocks last week.  Smooth sailing until Friday.  Today the market started deep into the red, but made its way to close well above the lows.  Weatherford International (WFT) took a big hit today earlier in the morning and closed down on the day.  One thing that caught my eye was WFT opened near the low of the day at $15.21 a share and paired its losses to close near the high of the day at $15.94.  That is a 4.79% move to the upside throughout the day.  Pay close attention tomorrow to the oil service companies. (Hint SLB, HAL, BHI, and WFT)  I’ve seen this chart many times and the buying action on the dip today increases the likelihood that increased buying is yet to come.  If I was a gambling man I would put my money on a positive day for the oil service companies tomorrow. 

Until next time “when in doubt buy more”


Buy List
Westport Innovations (WPRT) Stock is to cheap vs. the potential.  Chart shows increased buying action near the end of the day.  Remember energy isn't a want, but a need!

Kinder Morgan Energy Partners (KMP) Currently pays out a 6.60% or $4.60 a share.  I don't know about you, but your savings account pays less than 1.00%  If your looking for some income this is the perfect stock for you.  If the stock didn't go anywhere you would double your money in 10.9 yrs (Rule of 72 72/6.60=10.90)  This a great stock to have for retirement. 

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

Clay-

“When in doubt buy more!”

A Great Deal Of Optimism On The Week!

Yesterday was a beautiful day for the stock market. The DJIA was up over 200+ Points. You couldn’t ask for a better day. I’m going to be all over the place today so pay attention!

Now that the election is behind us a lot of investors are coming back into the market. The worries about indecision have been put to rest. Now that the House is majority Republican the checks and balances of the House and Senate is in place. Will this change anything? I don’t know, but for some people they believe this will prevent or minimize the amount of anti business bills to pass. Politics isn’t my specialty! I’m only concerned about the stock market. What the government does is out my control.

The first positive I greatly appreciated began with President Obama stating that he was receptive to talks about extending the Bush tax cuts. Reducing the amount of tax across all incomes is ideal to grow the economy. Less tax allows people to spend more money on goods and invest money back into small businesses to create jobs and allow opportunities for growth. I’m not rich and I get taken to the cleaners on paying tax. I don’t care who you are and how much money you make, when you have to pay higher taxes you’re going to get upset. Bring on the tax cuts! Tax cuts welcome! Another mention by Obama was natural gas. Natural gas backed by the government is great for Westport Innovations (WPRT) and the oil service companies. Companies like Weatherford International (WFT), Schlumberger (SLB), Halliburton (HAL), and Baker Hughes (BHI). Another good one would be Chesapeake Energy (CHK).

With higher commodity prices the energy sector should be perfect for some great returns. Over the past few days Weatherford (WFT) has moved up big. Yesterday it was up over 6.0%. I continue to back this company as the stock is cheap compared to its earnings growth. Westport (WPRT) reported earnings and from the earnings transcript business is good. It was beat up yesterday and is down as I’m writing do to the announcement that they will be issuing more stock, which in turn dilutes the current shareholders value. Usually this is a negative, but I believe this is a great opportunity to buy the stock lower. Remember Congress will reintroduce the energy bill in November for passage. Getting this bill to pass will boost Westport’s earnings drastically. This stock will move up so fast even Usane Bolt would be left in the dust! Lastly, higher commodity prices will sweeten the earnings for Caterpillar (CAT) as higher prices will boost demand for their machinery. I thought CAT would hit the low $70’s in price. I don’t think that is going to happen anytime soon!


The buying action over the past week continues to surprise me! Stocks should continue higher for the remainder of the year. I’m still looking for the big pull back, but I remain optimistic.  Oh yeah how about that October employment number!  October was a great month as we added 151,000 jobs.  First gain in 4 months. Not bad!

Have a great day!

Clay-

Have a Question? Send Questions to wheatleycsmk@gmail.com

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