Monster Portfolio 2011 Week 26 Results

MONSTER PORTFOLIO 2011

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

Balance: End of Week 25 07/08/11

$1,260.93 Stock
$1,117.47 Cash
Total $2,378.40

Since Inception: -3.92% excluding cash inflow

I’m getting closer to breaking even!  I’m sad to say I sold out the rest of Westport Innovations (WPRT) on Wednesday of last week at $24.45 a share.  WPRT took a big hit yesterday and I was hoping to slide back in over the next couple days.  Unfortunately, I will not get that chance because of the exciting news that Chesapeake Energy (CHK) will invest $150 million into Clean Energy (CLNE) the infrastructure play on natural gas.  What does this have to do with Westport?  According to yahoo finance linked through cnbc.com

http://www.cnbc.com/id/43725400?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo

“The plan is to ultimately build 150 stations along interstate highways to provide natural gas, as well as put pumps into existing truck stops.”  This is great news for Westport as it’s one step closer to push the acceptance of natural gas into the United States.  Click on the link above to read the full story.  With the current close of $26.30 up 8.59% on the day I gave up roughly a $40.00 gain.  I’m not too upset as I’m sure I helped some of you make some serious money over the past few weeks with WPRT.  I continue to back WPRT, but I would not chase this stock at its current level.  In the meantime I will have to sit on the sidelines and hope this dynamite stock pulls back to a level I’m comfortable with putting money to work! 

As of today I reinvested some of my money back into the out of favor oil service company Weatherford International (WFT).  I can’t and will not give up on this company!  They have too much potential, as they are set perfectly to take advantage of elevated oil prices.  I’m hoping the stock will trade down into the low to mid 17’s.  If I don’t get that opportunity I will gladly add to my position reaching no farther than a high 17 price point.  Sometimes you have to make a big bet on an ugly stock!  My recent purchase of WFT will not reflect in my portfolio until next week.

Have a great night!     

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

 Clay-

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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