Monster Portfolio Week 44 Results

MONSTER PORTFOLIO 2011


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

Balance: End of Week 43 11/11/11

$2,495.64 Stock
$19.92 Cash
Total $2,510.56

Since Inception: -4.29%

Back out cash inflow and we have a balance of $1,905.06

Well I hope some of you read my piece on Westport Innovations (WPRT) last week!  In the last 5 days the stock has surged +10.79%.  Most of the gains came from today, but who’s counting. LOL! Money is money.  It’s definitely exciting to see a stock move rather quickly, but as many of you may know I always tend to sell into a big move like today.  Westport closed up +8.59% just a few minutes ago as I had the day off.  This means I was able to watch this stock blow up today.  Very exciting!

I was very busy today as I purchased more Apple (AAPL) as I believe the stock price is currently undervalued.  I also picked up some Westport in my other accounts.  Then as the day went on I ended up selling a portion of my Westport holdings in my Monster Portfolio.  The main reason is that I won’t be able to watch my accounts over the next few days due to limited internet access.  I would hate to come back on Sunday to see my portfolio lower because I failed to sell some of my stock.  

I just found out the recent surge in Westport may have something to do with a tax credit plan.  See for yourself.  http://finance.yahoo.com/news/Clean-Energy-Supports-bw-4144486892.html?x=0&l=1

It appears the tax credit for natural gas vehicles has been put back into play, which adds tremendous value to Westport.  Although, Westport moved rather dramatically I can almost bet that this trend will continue for another few days.  My recommendation is to watch the volume and if you see the stock waiver at all I would sell into strength. 

P.S.  For those of you who are looking for a great dividend yield I also picked up some Kinder Morgan Energy Partners (KMP) last week in my IRA.  Currently the dividend yield is at 6.20%.  This stock is great for people who like to sleep well at night. LOL!

(All research was done at yahoo finance)

Have a great night! 

Clay-

“When in doubt buy more!”

Current Holdings:
Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT) (Sit tight with WFT it will go up eventually)
Westport Innovations (WPRT)

Monster Portfolio Week 40 Results

MONSTER PORTFOLIO 2011


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

Balance: End of Week 39 10/14/11

$2,485.66 Stock
$12.05 Cash
Total $2,497.71

Since Inception: -4.96%

Back out cash inflow and we have a balance of $1,892.21. 

It was a very productive week for the stock market last week.  My portfolio performed amazingly!  With the strong movement in Apple (AAPL) and Weatherford (WFT) I was able to gain +14.19% vs. last week.  Yes that is a big run, but I believe my portfolio still has great upward potential.  Apple reports tomorrow and I expect nothing less than another strong quarter.  I’m interested to see if they have anything up and coming in the pipeline.  The iPhone 4S was a big hit as they reported selling more than 4 million phones in 3 days.  That is ridiculous!  That is all the information I need to confirm that this stock should be a solid investment for many quarters to come.

As for Weatherford I base my assumptions on the other oil service companies and their financial results.  Halliburton (HAL) reported strong earnings topping analyst estimates earnings with a 2 cent beat (0.94 vs. 0.92)   Though the stock sold off today I believe the energy bull market is here to stay.  The company to pay attention to is Schlumberger (SLB) as they are largest and most influential oil Service Company.  They set the trend.  SLB reports on Friday.   I believe HAL and SLB will help Weatherford have a short term pop to the upside over the next few days leading into earnings.  If this happens I will be selling a portion of my holdings into strength.  If I’m wrong I expect WFT to trade basically flat line/slightly lower and then pop on the day of earnings. WFT reports on Tuesday 10/25 so there are 6 more trading days to go!  I will be selling one way or another as my portfolio is highly leveraged with WFT.  I have to protect my portfolio in the short term.

P.S.  another great indicator that energy is here to stay is the recent announcement of Kinder Morgan Energy Partners (KMP) to acquire EL Paso Corp (EP) for $38 Billion to create the largest natural gas pipeline system in North America.  KMP popped +5.08%  Energy=$$$

Clay-

“When in doubt buy more!”

Current Holdings:

Apple (AAPL)
Cosi Inc. (COSI)
Weatherford International (WFT)

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!”

Making Money Trend

Since Monday all the market indices are in the green. Today was a bit of a slowdown awaiting the infamous monthly non farm payrolls. I’m feeling pretty good about tomorrow’s jobs report.

Yes stocks tend to sell off the day before a big economic report, but it’s exactly how the big money managers play the game. They lighten up a bit on their winners awaiting the news. If the news is positive (which I think it will be), they will gradually work their way back into their favorite stocks.

From the recent upward trend in stocks I believe the outlook in jobs has turned to the upside. Weekly jobless claims have been gradually dropping in recent weeks and this has given the stock market a boost to the upside. Even if the non farm payrolls is positive tomorrow invest with caution. Remember this saying “Buy on rumor” “Sell on the news” Investing is counterintuitive. When everyone one is selling the smart investors are buying stocks at great prices to position themselves for a hefty profit. When everyone is buying the bulk of the money has already been made and the smart money is gradually selling into the strength on the positive news. Never chase a stock when it’s up big! Never! Be patient and buy on a down day.

This stock market has surprised me over the past few months and I believe stocks will continue to move higher throughout earnings season. The volume always increases and more investors pay attention to their stocks.  They pay attention to ensure the companies they invested their hard earned money continue to outperform. For this earnings season pay attention to the winners and sit back and take advantage of the short term moves upward. Earnings time is a great way to find new companies to invest in. Wait until all the earnings noise subsides and invest a couple weeks after the company you would like to invest in reports it’s earnings. I’ve seen the same trend over and over. A company reports great earnings and the stock surges higher for a couple of days and then comes right back down a week or two later. Humans are very emotional and people get too excited when they should be doing just the opposite.

Well that’s it for me. Stocks have been great! I’m definitely a bull in this market. I have no complaints. The positive trend will continue with a good payroll number tomorrow. Sleep easy!

P.S- Kinder Morgan (KMP) broke its 52 week high. Another one of my favorite stocks that has MONSTER STATUS written all over it! It pays a nice juicy 6.30% Dividend. It’s a glorified toll road for oil.

Clay-

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The Power Of Dividend Reinvestment. Harness The Power!

First I would like to say Wow! What a great day for the stock market! I have been looking for a positive day like this for weeks. The Dow up 273.28 to close up 2.76% to 10,172.53 I also enjoyed the nice action in WFT-Weatherford International. Finally the market has given this stock a little respect up 6.81% on the day. We still have a long push upward with this company.

Today I’m going to talk about the power of dividend reinvestment. You may say what is a dividend?

A Dividend is a portion of the earnings a company generates to give back to the shareholders of the stock. A large portion of companies pay out a dividend on a quarterly basis to their shareholders, meaning every 3 months.

For example Coca Cola Company ticker symbol (KO)

Pays out a $1.76 a year in dividends and at the current price of $52.45 that would yield a return of roughly 3.4% a year. That means every 3 months you would receive .44 cents for every share that you owned. Not to bad! That is definitely better than what you receive for the money you have parked in your savings account.

Now that we know the definition of a dividend I want to really explain the true power of reinvesting the dividend. Reinvesting the dividend is essentially buying more stock with the dividends you would receive on a quarterly basis. Well continue to use Coca Cola Company (KO) as an example.

Ex: Let’s say you bought 1,000 shares of KO.  Every 3 months you would receive .44 cents a share.

.44 x 1,000=$440 or $1,760 a year.

Say you reinvested those dividends for 30 years and never touched the stock and the price of the stock didn’t appreciate and stayed the same your initial investment of 1,000 shares would turn into 2,636.91 shares and you didn’t do a darn thing. That means:

1,000 shares at 52.45 would be $52,450

After 30 years your initial investment of $52,450 would have grown to a whopping $143,008.44 that’s a 172% return on your money. That was all created by reinvesting and compounding the dividend. You may say okay that’s a lot of money but I’m not really impressed. Check this scenario:

Same investment of 1,000 shares of KO at $52.45 and you reinvest your dividends, but now you also take advantage of the actual stock appreciating in value. Let’s say KO stock grows at an 8.5% rate of return annually. Your initial investment of $52,450 would have grown after 30 years to an amazing total of 1,529,847.31. That’s roughly 2,816% return on your money. You would have made $1,477,397.31 over 30 years. 1.4 million dollars!!!!

Don’t believe it! Check out this link and plug in the numbers

http://www.hughchou.org/calc/drip.php (this is where I pulled all my numbers and I give full credit to this site for a great product)

So in the end dividend reinvestment is the way to go! Harness the power of compound interest and in the long term you will see great results. Some great examples of dividend stocks you may want to check out are the following- (KO)-Coca Cola Company, (PEP)-Pepsico, ( JNJ)-Johnson and Johnson, (KMP)-Kinder Morgan Energy Partners, (MO)-Altria, (XOM)-Exxon Mobil, and (CAT)-Caterpillar to name a few.

If you invested correctly you could have a portfolio that consists of dividend paying stocks. Once in retirement you can pull a portion (a %) of the dividends to use as income to live on and let the rest of the dividends grow by reinvesting to continue to grow your nest egg. Make your money work for you! You have worked hard for your money and now its time to repay yourself!

I would also like to share a great website. I came across this site and have read a few of the articles and the information is very beneficial to all that would like to learn more about dividend stocks to grow their portfolio. This person has great insight!

http://www.dividendgrowthinvestor.com

Thank You,

Clay-

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