Monkey Portfolio

Portfolio Move - Adding Positions and a Candidate

2011-04-19T18:45:00.000-07:00

I subscribe to one the Motley Fool newsletters so I can't claim the pick are my own. As it is a subscription service, much of the data or analysis is not for public consumption. I pay for the service and The Motley Fool issues stock and financial advice in return. Given those circumstances, I will disclose very little other than say where my source for the stocks I'm purchasing are from.

I'm rating an immediate buy for Ameresco (NYSE: AMRC). Ameresco is an energy services company. I'll post a better description in a few days. I don't want to publish results from the newsletter. Instead I'll do my own synopsis. It's currently priced around $15 per stub. There is a lot of potential for returns and it's a recent IPO. More details coming soon.

Chinese web portal Sina is slow accumulation stock. I plan on purchasing slowly over a period of time until I have a what I consider a full position in my portfolio.

Watch List stocks: TTM Technologies (TTMI), Titanium Metals (TIE), Vodafone (VOD)

Vodafone will be an official candidate for the ThunderCougarFalconBird Fund pending research and due diligence. I plan on presenting my research on this blog and making a decision on whether or not to add VOD to the Fund.

Finally, due to stock appreciation, I already own more than a full position in Dolby. As of this post, I'm up 35% on my original investment. Sometimes the best investment is a stock you already own. So I'm considering adding to my Dolby holdings.

Brazilian Growth

2010-09-08T06:38:00.000-07:00

I've been obsessed with Brazil and its economy. Finance media regards Brazil as an "emerging" market. I tend to disagree with that assessment. I'm starting to view Brazil as a stable and growing market versus an emerging market. Right now I'd rather money in Brazil than Greece or Ireland. Brazil striving to become a world class economy. Greece is struggling to stay afloat. China is a hot economy trying not to overheat.

Brazil obviously isn't without risk. When I describe it as stable, that term is still relative. Poverty and crime still are a major problem. No matter what you think, those issues affect the economy.

I have no clue about government regulation and oversight of financial markets.

Then there are risks inherent in investing such as human nature and greed, bad management and taking on to much debt and flat out business failure.

However as a growing economy Brazil represents a unique opportunity to profit in a country's growth and future. Over the next year or two I plan on investing in a three or four Brazilian companies as well as a broad market fund.

These investments will be gradual and in addition to my usual investing objectives. I view the Brazil opportunity as chance to augment my portfolio but not my primary investing concentration.

The iShares Brazil fund I talked about in my last post will probably be my first investment. While a broad index fund is a good way to get money on the table, individual stocks can increase profit potential. Keep in mind that individual stocks also increases risk.

So far I have four candidate companies from the the Motley Fool article "Follow Landers Into Brazil." The article features four companies I will use as jumping off points for research: Petrobras, Itua UniBanco, Vale and Banco Bradesco.

The choices I make will become part of the official ThunderCougarFalconBird Fund.

Also on my previous post, I indicated interest in an iShares high yield bond fund. It may or may not be what I was looking for. After reading the prospectus I'm not entirely clear if it is a junk bond fund. It probably is but of course the literature won't refer to it as such. Thus the term "high yield" because junk bond investors require a higher interest for the risk.

All Is Quiet

2010-09-03T21:16:00.000-07:00

Right now I'm on the grand voyage of looking for a home. As such, my investing has slowed down as I prepare for purchase of the house.

I finally closed out my portfolio portion of shipping company Seaspan. Other than that I've let the research go to the way side for now. Not smart but house buying and summer fun have gotten in the way.

Until now I've dealt exclusively in buying stocks long. No shorts, options, mutual, ETFs or bonds have entered the portfolio.

I'm about to add a new product to my fund. I'm going to research a Brazil broad market fund. I'm also going to attempt to dabble a small part of my portfolio in a junk bond fund.

My portfolio is humming along very well despite the gloom and doom of the mass media. I adhere to the Motley Fool philosophy is you can make money regardless of the market. The key is to find well run companies, return cash to investors and have a history of good shareholder relations. It helps that management owns a good size of stock to align their wealth with mine.

So why the change? It's not really a change. My overall investing thesis remains. I decided to branch of for exposure to different risk. Most my exposure to foreign markets is through the international portion of my 401. I decided country specific gets me more targeted returns but it comes at a higher risk. As for junk bonds, it's just a risk I'm willing to take for some higher yields as well as capital appreciation since it is a traded fund.

For disclosure purposes the funds I'm researching are the iShares MSCI Brazil Index Fund (EWF) and iShares iBoxx $ High Yield Corporate Bond Fund (HYG). Actually I'm not sure High Yield is junk bonds but it's worth a look.

I should have a decision sometime next week.

ThunderCougarFalconBird Fund Buys and Amended Rules

2010-05-29T21:15:00.000-07:00

The new Thundercougarfalconbird Fund continues to acquire the first asset of Seaspan (SSW) which I explained in previous post. SSW is going to be a gradual accumulation until I feel I decide the risk outweighs the return. I'm looking to buy twice the amount of SSW than I do other spots. One reason is that I feel it has plenty of growth left in the stock price. Another is it pays a hive dividend distributing most profit not used to expand or run the business. I'm also allocating an amount toward my Roth fund.

I'm in the process of vetting new stocks for my next purchases. I'm currently looking to add another small cap but and finding one mega oil company to look tempting.

One final note on my portfolio candidates. I've stated that I base most my selection for my personal portfolio on newsletters I subscribe to. With the Thundercougarfalconbird Fund, I want to limit my exposure to those picks on my scorecard. I plan on using no more than four per year in the Thundercougarfalcon Fund's performance. Other stock ideas that I get from newsletters that are not official recommendations will be counted. The newsletters only introduce watch list stock with minimal research. Due to the research I'd put in, I feel I can rightly include these stock.

Name Change: Thundercougarfalconbird Fund

2010-05-27T22:04:00.000-07:00

Inspired by a Futurama episode, I renamed my new investment portfolio the Thundercougarfalconbird Fund.

Originally I named the fund after my alma mater, state and Liberty sounded cool.

I like the new name better.

Cougar Texas Liberty Fund

2010-05-25T21:30:00.000-07:00

Cougar Texas Liberty Fund

This is my new investing idea. I plan on building a portfolio of stocks outside my current account to see how I can do at picking my own stocks. Currently, most the stocks I buy are based on recommendations from subscription services. In the last seven years, I’ve learned a lot about stocks and now I would like to put my money where my mouth is. While there is a lot I know, there is even much more that I don’t know. My goal is to succeed in stock selection but also to learn from any failure and not repeat the same mistakes.

I’m still debating how to track my stock selections. The issue is to track them separately from my subscription based selections or lump them in together. I think I’ll have to decide on criteria for which subscription based stocks go into the fund tracker. If a stock is just mentioned on a subscription watch list, it will go into the fund tracker due to the amount of analysis I put into it. Official subscription recommendations probably won’t go on my fund tracker. I’ll have to think it through so more because I think there might be an occasional selection that does belong on the fund tracker.

Investing Philosophy
Since this is really just my personal stock selections and not a real fund, there are no limits or amounts I have to invest. The bottom line is for me to increase my investments and maximize profits and minimize losses. I’ll choose to invest in whatever financial instrument I feel best furthers my financial goals.

Despite the previous wide open statement, I have a preference in the type of stocks I like to buy. I prefer small cap stocks with the potential of a high return. I look for companies and businesses that show potential to explode due to a unique idea, niche market with room for plenty of growth or a small business with the ability to shake up and reinvent a traditional industry.

Two examples of my preferred stocks are Netflix and Buffalo Wild Wings. Netflix reinvented DVD rentals from the traditional brick and mortar store with its DVD by mail rentals. Netflix is now starting to branch out in other movie delivery systems. Buffalo Wild Wings does nothing unique. I can drive around town and find dozens of buffalo wing places. BWW combined the wings eating experience with the sports watching environment. With a controlled expansion, they are building the brand while using cash flow instead of heavy debt to build new restaurants.

Another type of stock I’m starting to gravitate toward is dividend paying stocks with potential for medium growth in stock price. To help spread and lower the risk, I will also add some solid steady paying dividend stocks like ExxonMobil, Johnson & Johnson and Pepsi.

I’ll also add ETFs, mutual funds, bonds and other type of investment vehicles as I deem appropriate. I may even one day expand to options if I can ever get my head around them.

Sell Notification, Purchase Notification

2010-05-21T22:35:00.000-07:00

Sell Notice - Netflix NTFX
I sold approximately 40% of my Netflix (NFLX) shares. The main reason is Netflix ballooned to 30% of my entire portfolio. It's a nice problem to have but a problem none the less. Netflix has been my top money maker especially due to an increase of my holdings when it bottom in the teens a few years ago. This is the second time I've shaved back my Netflix on the size in a year.

With the price reaching into the $100-110 range, I decided it was time to kill to birds with one stone. As I stated before, I'm cutting back primarily because NFLX ran up to inflate my holds (a good thing). However I had some valuations concerns and decided to take some of the gains off the table and look for new ideas to invest in. I have no doubt Netflix will continue to perform well but I'm just cutting my exposure while looking to put that capital gains right back to work.

One of the philosophies of the Monkey Portfolio is to reinvest in all manners. I reinvest dividends. I also reinvest shares sold to buy in other business. Last year after I sold my first installment of NFLX I put it to work in MSM Direct and Dolby Labs. Dolby has continued to beat the market.

Once again, that philosophy applies. The net gain from Netflix will be used to either expand current holdings or invested in new companies. A full position is a position in my portfolio that I consider the max I'll own of a stock. I do make exceptions and own more or less. Anyway, I've gained enough from the Netflix sale to fund three complete positions and a third of another.

Purchase Notification - Seaspan Corporation (SSW)
I give my reasons in my results of review of my holdings. I continue to keep buy until I reach my predetermined amount. Also I'm making it my first holding in my new IRA account.

Even though they are separate accounts, I'm counting them as one toward my new Texas Liberty Cougar Fund. More on the Texas Liberty Cougar Fund on the next post.

Review Complete

2010-04-25T15:54:00.000-07:00

After a review of my stocks portfolio and investment newsletters that I subscribed, I've decided to sell one stock. I'm selling two other stocks for portfolio maintenance purposes.

I subscribe to the Motley Fools Stock Advisor and Hidden Gems newsletters. I don't reveal to much of the information contained in those newsletters. They are subscription services and people pay for the information. I have no desire to lower the value of the information by revealing it on a blog. When I make moves based on the newsletters I give only vague information. I see no reason to hide what I buy or sell on recommendations if I keep it vague.

Also please remember that this blog is for informational purposes for me and whoever reads it. I in no way recommend you follow my moves. I do so with money I can afford to lose if things go haywire. Everybody's financial situation is different. Please consult with a financial advisor and/or do your own due diligence. What may be all right for me may not be a great idea for you.

That gets the disclaimers out of the way.

Sells
My first sell is Double Take Software. They are up for acquisition and there is no longer any potential upside. Even if they weren't up for sale, the business has been stagnant and they've tried entering markets already occupied by the big boys Google and Microsoft.

The other two sales are mainly clean up issues. One is a small position I had in LoJack (LOJN). I bought it as a small cap looking for a decent return. It isn't going up or down. I have better ideas to invest in. I no longer have the desire to keep up with it either so it's time to say bye.

The other position I'm cutting lose is ActivIdentity Corp (ACTI). I honestly have no earthly idea what they do. I bought the stock by mistake. I intended to buy Activision (ATVI) but entered the wrong ticker symbol. I held the small stake after I bought it just to see what it did. Since I don't follow the company or know what it does, it's time to move on from that accidental buy.

A Single Buy
Finally, I have one buy to announce. I'm opening a position in Seaspan (SSW). Seaspan owns and operates container ships and leases them long term. They concentrate their business in shipping from Asia to the U.S. They currently own and operate 42 ships with the goal of adding 21 and leasing 5 more by 2014. The company pays out a high portion of profit as dividends to stock holders.

I believe SSW is a high risk investment. The company's success relies on an improving world economy. Should the economy and taste for Asian manufactured goods slip then SSW will probably take some major losses. However, the potential rewards help offset the risk. With an undervalued stock and high dividend payout, stock holders will be compensated for the risk if the economy starts keeps on improving.

I'll be watching as close as I can the ships it has on order. I think ship orders is a decent indication of the health of the company. If the SSW trims back or puts future orders on hold chances are they see or have trouble brewing.

It's Been A Long Time

2010-04-25T08:23:00.001-07:00

Other obligations have kept me from keeping up this part of my blogs and website.

Also I haven't been a very active investor in a while. I plan on buying a house in the near future. As a result, most my extra money goes into a savings account toward a down payment.

My portfolio ran on cruise control the last several months.

I decided to return to actively managing my stock portfolio.

A quick inventory of my investment account shows some I need to clean up the pile. Also, it's nice to know I've picked some quality stocks that keep me in the black. Of course some stocks are losers or stagnant. I will trim those off the list shortly.

On the flip side, my three stocks of the several I own keep my money well into the black. Those three stocks are Netflix, Buffalo Wild Wings and Chinese's travel site Ctrip.com.

I'll post my stock moves in a future post (maybe today). I first must continue with accessing my portfolio, reading my investment newsletters and other sources before I make any final decisions.

I've also started a stock project. I used two stock screens to assemble a list of potential small cap stocks and will add a few more from my investment sources. I will then whittle it down and research stocks, if any, that remain.

I'm also open to a few ETFs that invest in markets like Brazil, Russia, India and China as well as emerging markets.

That's all for this brief update but I'm back in the saddle. Again.

All's Quiet on the Monkee Portfolio Front

2009-07-29T19:09:00.000-07:00

I haven't posted lately because I've been very inactive with my portfolio lately.

My latest move was a sale of Umpqua Holdings Corporation (UMPQ). I don't have the exact numbers yet but it was around a 50% loss. I sold on a recommendation from one of the Motley Fool newsletters I subscribed to.

In short, the recommendation was based on the regional bank's exposure to commercial real estate. The Fool believed that UMPQ was sufficiently capitalized to weather the mortgage bubble and conservatively lent money to home owners. They feel, however, that isn't the case with the banks commercial real estate portfolio. While they don't think it will break the bank, they don't feel the risk outweighs the benefits anymore. Better to cut losses now and look for other places to invest with what remains.

One thing the Fool preaches is to learn from all your investments. Especially to learn from the mistakes so you won't repeat them. The Fool made the call to invest in UMPQ in 2007 before the housing bubble bursting. Even after it hit they recommended to hold. Did they make a mistake in recommending the stock? Obviously yes or else I wouldn't be looking at a 50% loss. However, small or regional banks can pay off big. Unfortunately no one saw the damage coming in the economy. I saw a housing bubble but I had no idea it would affect the economy like this. So I really can't fault the Fool for the losses. The don't guarantee success.

One other recommendation is to diversify over different stocks and sectors. Buy the best. No one will be perfect in the market but you can minimize your exposure. My portfolio contains eighteen stocks after the UMPQ sale. Of the remaining stocks, eight are in the black. Three of the winners are up significantly. BWLD is up over 150%, NFLX over 200% and CTRP over 150%. My point is even with a significant loss in UMPQ I still am in the black. Those three stocks have more the held up my portfolio through the rough economy.

In the future I expect some losses due to the inherent risk in investing. However, if I make my selections and vet them well, I expect my returns to outweigh my losses over the long haul.

One last note on my inactivity. I transferred jobs within my company. So there was a lack of overtime in my new assignment lately. My investing policy is to use only extra cash. Usually that means overtime money goes to savings and investments. Lately though it's just been paying bills and car repairs. If I didn't have the car repairs I'd probably be more active. I have some extra cash this month so I'll be making some buys soon. When I do I will post my selections.

Sell Visa?

2009-06-10T17:22:00.000-07:00

This article from the Motley Fool recommends selling Visa (V).

The writer, Morgan Housel, makes the claims that Visa's recent run up in price is cause to sell. He further states that Visa is now priced for perfection. On the valuation side, he claims that Visa already has future growth priced in.

To quote from the article:

Say Visa meets 2011 earnings expectations of $3.95 per share, and still commands a multiple of 20 times earnings. Under these assumptions, it'll reward shareholders with annual returns of less than 8% per year -- nothing to sneeze at, but nothing to drool over, either.

To finish up the article, he states that banks are cutting back on credit lines and that is the core business of Visa. Credit transactions account for two thirds of business versus the rest made up by debit transactions.

Combine the recent run up with the downturn in the economy, the richly priced stock and credit lines being cut, Housel recommends selling Visa.

My Visa
I hold a position of Visa in my portfolio. I don't hold as large a stake percentage wise as I do other stocks like Netflix (NFLX) and Buffalo Wild Wings (BWLD). Visa has risen in value since I started purchasing but I never filled up my full allotment due to I believed that there were better stocks to buy. I never sold my holdings because I believed that there some value remaining in Visa. Today I continue to hold my position without adding anymore unless the price drops and it becomes undervalued.

According to Housel's valuation, Visa can return less than 8%. As with any valuation, there is some guess work and assumptions baked in.

Based on Housel's work, I don't feel compelled to sell Visa. Factoring in the dividend and Housel's valuation, I feel Visa has enough room to grow for me. While 8% isn't world beating, it's better than most CDs and savings accounts. My position in Visa is two thirds of a full position. Overall, Visa comprises about 3% of my portfolio. My risk tolerance is high and my horizon is over 15 years.

There is no guarantee that Visa will ever make me a return on my initial investment. However, combining overall market conditions, my risk tolerance and horizon, valuation of the stock and the overall position Visa takes up in my portfolio, I feel comfortable holding my shares.

Disclaimer: This is an update on my personal portfolio. I post my thoughts and opinions on the markets to help me think out my ideas as well as possibly providing insights. Likewise, I post for others to see my ideas and point out any flaws in my ideas or investment thesis.

This is not a recommendation of any kind for Visa or any other stock mentioned in this blog. Due your own due diligence or consult a financial advisor before purchasing any securities.

Monkee Cage Holdings

2009-06-01T18:14:00.000-07:00

I created a web page to illustrate my stock holdings without giving away dollar amounts. Everything is in percentages. For example I have a dollar amount what I consider a full position of a stock. That is usually the most I'll buy for a holding. However sometimes I think a stock is to risky or the price shot up quickly while I was accumulating. In those cases I am underweight. Other times I think a stock is vastly under priced so I may overload on it and acquire more than I normally would. 100% represents a full weight position while greater than 100% is overweight and under 100% is underweight.

My portfolio can be found at Monkee Cage Holdings

I also included the cost per share and the percentage each stock takes up in my portfolio. The table only includes stocks I buy outside of my 401K. The 401K is mostly company stock and index funds. I want to track stocks I buy on my own.

Now that all my holdings are out there, I have a few notes I'd like to pass on about a few of the stocks.

Activdenity Corp (ACTI)
ACTI was a complete accident. I never intended to own any shares. Unfortunately I didn't double check my ticker symbols before I hit buy. I intended on buying Activision Blizzard (ATVI).

Since I own a small slice of it, I'm going to do some digging around on ACTI and see if it's worth adding more or just letting the little slice of it grow. I don't even think the position is big enough to warrant selling.

Lo Jack Corp (LOJN)
I'm considering selling LOJN. I must double check my notes but I believe they lost some contracts and that will hurt the bottom line in the future. So right now I'm considering selling my shares.

Buys
I'm not considering any other sells but I'm still acquiring shares in Teradata (TDC) and Wiley John & Sons (JW.A). I'll soon be topping off my position on KHD Humboldt Wedag International (KHD).

As always, mimic what I'm doing at your own peril. Always do your own due diligence or consult with a financial expert before you make any financial moves.

More on the NFLX sale, Two New Buys

2009-05-17T19:48:00.000-07:00

I unloaded about 35% of my Netflix (NFLX) holdings for two primary reasons.

The first is valuation concerns. I thought NFLX took a nice run and reached a high point for now. If the share price becomes attractive again then I'd think about buying back in.

NFLX ballooned up and comprised 26% of my portfolio. The other reason I sold was to bring that number down and rebalance some.

I also plan on using the NFLX proceeds to pay down my margin loan and start building out new positions. I'll reveal my next two stocks further down.

I have no problem with a stock taking up that much room in my investment account. However, coupling the high percentage with the run up in price, I decided to lighten up the holding.

In buy news, I'm currently in accumulation mode on two new stocks. I'm buying a full position on John Wiley & Sons (JW A) class A shares. I'm also opening a position on TeraData Corp (TDC) with intent to fill a full position. Currently I own 25% of what I intend to own in both shares.

Out of respect for the Motley Fool's product and my subscription to it, I won't go into details on reasons to buy the new stocks. I will in future writings but they are recent recommendations and don't feel right revealing information others and I paid for.

As usual, I write this blog as a tool for me to keep track of my stock ideas, buys, sells and reasons behind it all. I in no way endorse any security, stock, bond or any other financial instrument. Nor do I endorse anything that I might mention in this blog that I cite from the Motley Fool or any other publication. Each person's situation is different than mine. Therefore, you must do your own due diligence and consult with a financial advisor before you follow any moves announced by me on this blog.

When I'm off from work this week, I'll reveal all my stocks and their weighted position they hold plus what percentage of a full position they hold.

Buys, Sells and other Monkee Portfolio Updates

2009-05-09T20:46:00.000-07:00

Buys, Sells and other Monkee Portfolio Updates
Before I left on my week for the woods, I executed a few trades in the Monkee Portfolio. Note that this many trades is a rare event in my investment approach. I don’t blindly buy companies (thanks to the Motley Fool newsletters) but I don’t sell without good reason either.

First off was I sold a portion of my Netflix (NFLX) holdings. I did this on my own without any sale notice from the Motley Fool Stock Advisor (MFSA). First a little background. I bought on the newsletter’s recommendation and built up what I consider a full position. When the price fell I decided to go overweight on it and increase my holdings by 50%. That move was on my own but it was reinforced by the fact that NFLX was recommended more than once by MFSA. The move paid off very well as I’ve more than tripled my initial investment.

As the price bounced around in the mid $40s, I started having questions about valuation and how much of my portfolio it took up. NFLX made up 26% of my investments (not including 401k). As I glanced at the pricing metrics (P/E, earnings, etc.) I felt okay with the current price. While the valuation might be high, for a growing company like NFLX sometimes the P/E runs high. While the price wasn’t screaming buy, I wasn’t so nervous about losing value. So I decided to take some of the gains off the table. I sold an amount equal to my initial investment in NFLX including the 50% I went overweight on. I’ll give my reasoning on the amount sold after I go over my other trades.

I sold off my entire holding of MVC Capital (MVC) on a recommendation from the Motley Fool’s Hidden Gems (HG). In fairness to those who pay for it and the Motley Fool who charges for the service, I won’t go into detail. MVC invests in small and diverse private businesses. They facilitate private funding for those companies and receive ownership and other future considerations as well as making loans to these compaines. How MVC issues a valuation to the individual companies and sum it up to come with a net asset value (NAV) is cloudy. No third party audits the findings. Thus the Fool decided to sell and look for more transparent companies to invest in. One thing must be said. This is not a knock on the company. They maybe telling the truth. It’s just without an outside auditor it’s hard to feel comfortable with money invested with them when NAV almost always seems to be above the stock price.

In addition to the sells, I also made two buys. I bought shares to close out my accumulation of KHD Humboldt Wedag and the same with Dolby. I now own full positions of shares in my portfolio.

What to do with sell proceed?
That is the question I ask myself while trying to figure out a sale. Typically I’d roll it to the brokerage account until I decide my next investments. Not so this time.

Note: I will update this entry in the next couple of days to complete my reasons for selling Netflix and explain what I plan on doing next.

Intro to the Monkee Portfolio

2009-05-02T23:56:00.001-07:00

The Monkee Portfolio

That’s right. Unkle Monkee also runs his own investment portfolio. Of course I don’t do it all on my own. I use newsletters from the Motley Fool to help decide my investments. I subscribe to the Fool’s Hidden Gems (HG) and Motley Fool Stock Advisor (MFSA). I don’t know exactly by how much I’m beating the market (using the S&P 500 as a benchmark) but I am in the black. And it has been a wild ride. I’ve been up and down during this economic tsunami. Having an even temperament and not getting my emotions caught up in the price of my investments has helped me actually turn from red to black.

Don’t get me wrong, the majority of my portfolio is in the red. I have several stocks under my initial buy price. I’ve even added more of certain stocks hoping to take advantage of prices that have gone to low. For instance, when Morningstar (MORN) hit the low $30s, I increased my holding by 25%. I wanted to double down but just didn’t have the stomach to pull the trigger. I compromised and went with a modest increase instead.

Basically two stocks have buoyed my holdings into the black. The first is Neftlix (NFLX). I initially bought shares a few years ago on a recommendation from MFSA. Of the top of my head, I believe my buy in price was around $18-20. When the stock fell further to $12-15 I bought more shares (about 50% of my initial investment). That move has paid of handsomely as the stock hovers in the $40s. Right now I have some valuation concerns with the price but haven’t heard anything from MFSA to indicate selling. I haven’t trolled the NFLX message board either to get a feel of what others think. I’m tempted to scale back to rebalance some. If it runs to the $50s I more than likely will pare it back some (maybe 25-30%). It’s a hold right now.

The other holding that’s keeping me above water is Buffalo Wild Wings (BWLD). This one was a HG recommendation. In addition to the recommended buy, for a while I kept adding shares when ever the price slipped below $30. I sold a portion late last year on a HG recommendation. As it approached $47 they cited concerns about valuation. Instead of selling the entire portion though, they recommended paring back and possibly buying back in when prices fell. I used the proceeds from the BWLD sale to open up positions in three other stocks. Now that the stock is back above $40 I regret I didn’t at least add more shares like I did previously when it dipped below $30.

That’s the good. There is also the ugly.

At the beginning of 2008 I thought Citigroup (C) was undervalued. I didn’t realize or grasp the depths of the impending implosion of bad loans. If professionals missed it, someone like me who isn’t savvy enough to read bank filings was definitely doomed. I bought solely on brand name and stock price. I didn’t read SEC filings or press clippings. I thought Citigroup is a big bank and shares are cheap. I got slapped hard by reality. I bought for around $25 and dumped my shares at around $6. Fortunately I hadn’t built up what I consider a full position of shares. Or else the damage would have been worse. I decided to apply what was left over from the carnage to my margin account loan.

In a future posting I’ll reveal all my holdings. I haven’t figured out what format I want to use. I don’t want to reveal dollar amounts or number of shares I own. I’ll probably give general percentages in relation to what I consider a full position. For example, if 100% means I own a full position of a particular holding then anything under 100% means I’m underweight and probably still adding shares. Anything over 100% means I’m overweight due to my buying more than a full position or the shares have appreciated that much.

I want to be as transparent as possible without giving dollar amounts away. I have to keep something private. I also want to post reasons for buying, selling and holding without giving to much away from the Motley Fool subscriptions. Since it’s a subscription service, I don’t think it would be right to give away information that me and other subscribers have paid for.

Now if I make a buy or sell based on information I get outside the Motley Fool, I won’t hesitate to post that in full. For any stocks I find on my own, I won’t mind posting my full reasoning and thesis for buying, selling or passing on it.

Note: This blog is for informational purposes only. Any decisions on what to buy or sell are solely my own. I gather information from the subscription services, stock screens and my own research and decide whether or not to proceed with a transaction. Everybody’s financial circumstances are different. Anything mentioned in this blog is not a recommendation. Do your own due diligence or consult with an appropriate professional to make you decisions.