Portfolio Review
Jun 23rd, 2008 by Erv
For the first time since I started this blog in early January, our portfolio has gone slightly negative, based on June 20 closing prices. Of course, in the U.S., no sector has been immune, except oil. In the last 12 months, out of 159 market sectors, a full 156 of them have lost money. Still, we are trying to be conservative while attempting to grow our portfolio with a variety of stocks, all selected to make us money while also teaching specific investment techniques.
As I review our portfolio, I believe we should stick with our current selections. Our covered call play (CROX) has been hit hard, with the stock losing $880, but the call we sold has increased in value by $425 offsetting some of this loss. Still, CROX was cheap when we bought it and it’s cheaper now. Not long ago (November 2007), it was priced at over 100 times earnings at $75/share. Crocs recently reaffirmed 2008 earnings guidance of $1.50 to $1.70 per share. So, at Friday’s closing price of $9.17 per share, CROX trades somewhere between 5 and 6 times forecasted earnings. The company also has no debt and trades at just one times revenue. It is now a value stock.
As for our other stocks, the portfolio review I did on May 31 still applies. To see it, click here.
