Great Balls of Fire!

Quite a day, I was up 3.8% which was my 4th best day of the year. Every stock was green. FSUMF and CKSW were each up around 9%. HCKT was almost up 10%. We'll see if the momentum continues, the talking heads were besides themselves gakking about how INTC and GS have sparked the rally. But I suspect the market will be only as good as the most recent earnings... so if a bellweather disappoints it could drop just as fast.

My quickie ADY play (which I didn't count as MFI) worked out quite satisfactorily (up 20% on Tuesday and another 5% today before I sold. Too bad the GRVY move hasn't been quite as good, but you can't always get instant satisfaction.

I thought I'd give a quick update on the top 50 mechanical portfolio. It is really smoking. The open stocks are up 25% (this goes back to July 2009) while the S&P is up a mere 1.6%. I need to stop over-thinking and just follow the mechanics. Great example, the most recent stocks to hit the mechanical portfolios are MTXX, JTX and SGR. I bought JTX... but the best two have been MTXX and SGR (up 15% already). There is still time. Without further ado, here is the mechanical portfolio:

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
MSFT	7/20/08	25.86	24.12	0.26	125.98	2.49	-5.7%	-24.0%	18.3%
VCLK	7/20/08	10.20	10.87	-	125.98	2.49	6.6%	-24.0%	30.6%
SHFK.PK	7/26/08	27.50	14.12	-	125.48	2.49	-48.7%	-23.7%	-25.0%
IBAS	7/26/08	3.90	1.75	-	125.48	2.49	-55.1%	-23.7%	-31.4%
CF	8/8/08	134.65	71.22	0.20	129.37	2.49	-47.0%	-26.0%	-21.0%
ANF	8/8/08	50.38	25.08	0.35	129.37	2.49	-49.5%	-26.0%	-23.5%
AYSI.OB	8/8/08	1.77	0.42	-	129.37	2.49	-76.3%	-26.0%	-50.3%
DEIX	8/8/08	1.70	0.16	-	129.37	2.49	-90.6%	-26.0%	-64.6%
PRFT	8/8/08	7.36	6.91	-	129.37	2.49	-6.1%	-26.0%	19.9%
TEX	8/8/08	47.22	12.16	-	129.37	2.49	-74.2%	-26.0%	-48.3%
DBTK	8/8/08	11.20	8.33	-	129.37	2.49	-25.6%	-26.0%	0.4%
GRMN	8/8/08	37.09	23.65	0.38	129.37	2.49	-35.2%	-26.0%	-9.2%
KHD	8/8/08	25.26	8.96	-	129.37	2.49	-64.5%	-26.0%	-38.5%
LOOP	8/8/08	10.50	7.86	-	129.37	2.49	-25.1%	-26.0%	0.8%
LO	8/8/08	68.41	67.79	1.84	129.37	2.49	1.8%	-26.0%	27.8%
MPAA	8/8/08	6.60	4.29	-	129.37	2.49	-35.0%	-26.0%	-9.0%
STX	8/8/08	15.00	10.87	0.12	129.37	2.49	-26.7%	-26.0%	-0.7%
BARE	8/26/08	12.81	7.91	-	127.39	2.49	-38.3%	-24.8%	-13.4%
EGN	8/26/08	53.56	38.14	0.25	127.39	2.49	-28.3%	-24.8%	-3.5%
PRM	8/26/08	3.02	1.90	0.07	127.39	2.49	-34.8%	-24.8%	-9.9%
LOV	8/26/08	4.26	2.45	-	127.39	2.49	-42.5%	-24.8%	-17.6%
SCMP	9/2/08	9.50	6.35	-	128.79	2.49	-33.2%	-25.7%	-7.5%
EGMI.OB	9/6/08	0.69	1.17	-	124.42	2.49	69.6%	-23.0%	92.6%
MLNX	9/6/08	10.61	12.50	-	124.42	2.49	17.8%	-23.0%	40.9%
WFR	9/15/08	34.34	17.83	-	126.09	2.49	-48.1%	-24.1%	-24.0%
KBR	9/15/08	19.17	18.11	0.05	126.09	2.49	-5.3%	-24.1%	18.8%
DELL	9/22/08	16.63	12.32	-	124.12	2.49	-25.9%	-22.9%	-3.1%
NGA	9/22/08	6.50	6.09	-	124.12	2.49	-6.3%	-22.9%	16.6%
TTWO	9/22/08	16.57	8.09	-	124.12	2.49	-51.2%	-22.9%	-28.3%
FWLT	10/6/08	31.91	20.69	-	110.34	1.80	-35.2%	-13.9%	-21.3%
MOS	10/6/08	40.88	44.55	0.05	110.34	1.80	9.1%	-13.9%	23.0%
WRLS	10/6/08	1.82	2.15	-	110.34	1.80	18.1%	-13.9%	32.0%
TSCM	10/6/08	5.09	2.04	0.03	110.34	1.80	-59.4%	-13.9%	-45.6%
CTCM	10/10/08	9.02	10.77	-	88.50	1.80	19.4%	7.4%	12.0%
DAR	10/10/08	7.55	6.87	-	88.50	1.80	-9.0%	7.4%	-16.4%
NOV	10/10/08	23.42	33.40	-	88.50	1.80	42.6%	7.4%	35.2%
PRGX	10/10/08	4.69	3.04	-	88.50	1.80	-35.2%	7.4%	-42.6%
PCP	10/10/08	54.15	75.66	0.04	88.50	1.80	39.8%	7.4%	32.4%
ALDN	10/10/08	9.64	11.49	-	88.50	1.80	19.2%	7.4%	11.8%
GPX	10/17/08	5.03	6.60	-	93.21	1.80	31.2%	2.0%	29.2%
BKE	10/31/08	26.34	31.71	0.20	96.83	1.80	21.1%	-1.8%	23.0%
CYNO	10/31/08	8.76	7.41	-	96.83	1.80	-15.4%	-1.8%	-13.6%
DHX	10/31/08	4.06	4.40	-	96.83	1.80	8.4%	-1.8%	10.2%
GES	10/31/08	21.77	25.94	0.10	96.83	1.80	19.6%	-1.8%	21.4%
HWAY	10/31/08	10.10	12.97	-	96.83	1.80	28.4%	-1.8%	30.2%
WBC	10/31/08	18.37	18.00	0.07	96.83	1.80	-1.6%	-1.8%	0.2%
GTLS	11/7/08	11.62	19.03	-	93.86	1.80	63.8%	1.3%	62.5%
CDII	11/7/08	2.77	1.53	-	93.86	1.80	-44.8%	1.3%	-46.0%
IPHS	11/7/08	19.97	16.95	0.17	93.86	1.80	-14.3%	1.3%	-15.5%
MSPD	11/7/08	1.31	2.31	-	93.86	1.80	76.3%	1.3%	75.1%
QLGC	11/7/08	11.49	13.56	-	93.86	1.80	18.0%	1.3%	16.7%
SCHN	11/7/08	27.07	52.86	-	93.86	1.80	95.3%	1.3%	94.0%
SVR	11/7/08	8.92	16.79	-	93.86	1.80	88.2%	1.3%	87.0%
TDC	11/7/08	14.48	23.85	-	93.86	1.80	64.7%	1.3%	63.4%
EBAY	10/31/08	14.19	17.83	-	96.83	1.80	25.7%	-1.8%	27.5%
TKTM	11/14/08	5.87	7.09	-	86.62	1.80	20.8%	9.7%	11.0%
ERES	11/14/08	4.65	5.77	-	86.62	1.80	24.1%	9.7%	14.3%
FEED	11/14/08	1.76	5.69	-	86.62	1.80	223.3%	9.7%	213.6%
HCKT	11/14/08	2.57	2.55	-	86.62	1.80	-0.8%	9.7%	-10.5%
FLR	11/14/08	35.73	49.09	0.13	86.62	1.80	37.7%	9.7%	28.0%
GTI	11/14/08	4.79	11.70	-	86.62	1.80	144.3%	9.7%	134.5%
INTX	11/14/08	4.10	4.07	-	86.62	1.80	-0.7%	9.7%	-10.5%
MSO	11/14/08	3.91	3.17	-	86.62	1.80	-18.9%	9.7%	-28.7%
JCG	11/14/08	11.22	27.41	-	86.62	1.80	144.3%	9.7%	134.6%
MDR	11/14/08	7.80	18.40	-	86.62	1.80	135.9%	9.7%	126.2%
ABAT	11/21/08	1.34	3.91	-	79.52	1.80	191.8%	19.5%	172.3%
ADSK	11/21/08	14.37	18.46	-	79.52	1.80	28.5%	19.5%	8.9%
GIGM	11/21/08	3.79	5.43	-	79.52	1.80	43.3%	19.5%	23.7%
OPTV	11/21/08	0.94	1.35	-	79.52	1.80	43.6%	19.5%	24.1%
PRO	11/21/08	4.14	8.05	-	79.52	1.80	94.4%	19.5%	74.9%
WTSLA	11/21/08	2.20	2.97	-	79.52	1.80	35.0%	19.5%	15.5%
AIRT	11/28/08	6.08	8.53	-	90.09	1.80	40.3%	5.5%	34.8%
BSQR	11/28/08	2.48	2.78	-	90.09	1.80	12.1%	5.5%	6.6%
CKSW	11/28/08	2.20	6.30	-	90.09	1.80	186.4%	5.5%	180.9%
IILG	11/28/08	5.30	10.76	-	90.09	1.80	103.0%	5.5%	97.5%
PBSO.PK	11/28/08	0.39	0.40	-	90.09	1.80	1.3%	5.5%	-4.2%
DIVX	12/8/08	4.37	5.65	-	87.93	1.80	29.3%	8.1%	21.2%
GSIT	12/8/08	2.94	4.04	-	87.93	1.80	37.4%	8.1%	29.3%
HGRD	12/8/08	1.35	4.53	-	87.93	1.80	235.6%	8.1%	227.5%
ISIL	12/8/08	7.92	13.52	0.12	87.93	1.80	72.2%	8.1%	64.1%
MAXY	12/8/08	5.80	7.00	-	87.93	1.80	20.7%	8.1%	12.6%
PVSW	12/8/08	3.80	5.65	-	87.93	1.80	48.7%	8.1%	40.6%
DDMX	12/14/08	11.13	15.50	-	88.99	1.80	39.3%	6.8%	32.4%
PSOF	12/14/08	2.74	4.11	-	88.99	1.80	50.0%	6.8%	43.2%
ITWO	12/29/08	5.61	12.59	-	87.16	1.08	124.4%	8.2%	116.2%
JOYG	12/29/08	21.95	34.44	-	87.16	1.08	56.9%	8.2%	48.7%
TRMS	12/29/08	1.03	2.00	-	87.16	1.08	94.2%	8.2%	85.9%
CTGX	1/5/09	3.18	6.58	-	92.96	1.08	106.9%	1.5%	105.4%
PMD	1/5/09	6.44	6.70	-	92.96	1.08	4.0%	1.5%	2.6%
HPY	1/26/09	8.54	9.55	-	83.11	1.08	11.8%	13.5%	-1.7%
HLIT	1/31/09	5.15	5.89	-	82.83	1.08	14.4%	13.9%	0.5%
HGT	1/31/09	13.06	12.50	-	82.83	1.08	-4.3%	13.9%	-18.2%
CNU	2/9/09	1.96	2.77	-	86.98	1.08	41.3%	8.5%	32.9%
SJT	2/9/09	19.05	12.51	-	86.98	1.08	-34.3%	8.5%	-42.8%
SGU	2/9/09	2.55	3.42	0.07	86.98	1.08	36.8%	8.5%	28.3%
TC	2/9/09	4.33	11.61	-	86.98	1.08	168.1%	8.5%	159.7%
bioc	2/16/09	3.72	3.76	-	82.76	1.08	1.1%	14.0%	-12.9%
FORR	2/16/09	17.56	24.16	-	82.76	1.08	37.6%	14.0%	23.6%
ZYXI.OB	2/16/09	1.20	0.95	-	82.76	1.08	-20.8%	14.0%	-34.8%
FRD	2/23/09	4.95	5.38	-	77.42	1.08	8.7%	21.9%	-13.2%
SOLR	2/23/09	4.22	5.50	-	77.42	1.08	30.3%	21.9%	8.5%
MTXX	2/23/09	17.90	6.09	-	77.42	1.08	-66.0%	21.9%	-87.8%
TYPE	2/23/09	3.02	7.13	-	77.42	1.08	136.1%	21.9%	114.2%
PTIE	2/23/09	5.41	4.53	-	77.42	1.08	-16.3%	21.9%	-38.1%
PDO	2/23/09	3.19	4.90	-	77.42	1.08	53.6%	21.9%	31.8%
SAPE	2/23/09	3.38	6.28	-	77.42	1.08	85.8%	21.9%	63.9%
VDSI	2/23/09	5.25	7.74	-	77.42	1.08	47.4%	21.9%	25.6%
IGTE	2/23/09	2.99	6.48	-	77.42	1.08	116.7%	21.9%	94.9%
DECK	3/2/09	41.27	70.00	-	73.93	1.08	69.6%	27.6%	42.0%
KTII	3/2/09	55.48	87.09	-	73.93	1.08	57.0%	27.6%	29.4%
INT	3/2/09	29.01	39.58	-	73.93	1.08	36.4%	27.6%	8.8%
ICAD	3/2/09	0.90	1.16	-	77.42	1.08	28.9%	21.9%	7.0%
EXBD	3/9/09	12.96	17.55	-	68.92	1.08	35.4%	36.9%	-1.5%
DISH	3/9/09	9.27	15.61	-	68.92	1.08	68.4%	36.9%	31.5%
QLTI	3/9/09	1.41	2.17	-	68.92	1.08	53.9%	36.9%	17.0%
SRDX	3/9/09	16.87	23.70	-	68.92	1.08	40.5%	36.9%	3.6%
INFI	4/20/09	5.83	5.93	-	87.08	0.52	1.7%	7.7%	-6.0%
CRAY	5/3/09	3.98	8.52	-	87.89	0.52	114.1%	6.7%	107.4%
TWX	5/3/09	22.84	25.71	-	87.89	0.52	12.6%	6.7%	5.9%
RST	5/3/09	29.83	26.71	-	87.89	0.52	-10.5%	6.7%	-17.2%
ULCM.PK	5/3/09	2.18	1.90	-	87.89	0.52	-12.8%	6.7%	-19.5%
AAV	5/18/09	3.41	4.93	-	88.71	0.52	44.6%	5.7%	38.9%
AMED	6/1/09	30.43	34.25	-	92.53	0.52	12.6%	1.3%	11.2%
UTA	6/1/09	7.90	9.49	-	92.53	0.52	20.1%	1.3%	18.8%
PFE	6/7/09	14.51	15.02	-	94.55	0.52	3.5%	-0.8%	4.3%
VM	6/7/09	4.55	3.85	-	94.55	0.52	-15.4%	-0.8%	-14.6%
ONTY	6/14/09	2.60	3.16	-	95.08	0.52	21.5%	-1.4%	22.9%
BPI	6/21/09	16.74	15.99	-	92.04	-	-4.5%	1.3%	-5.8%
GME	6/21/09	22.95	21.64	-	92.04	-	-5.7%	1.3%	-7.0%
SGR	7/13/09	23.69	27.10	-	87.96	-	14.4%	6.0%	8.4%
						Totals	7.1%	-11.0%	18.0%
55.3% of stocks beat the S&P 500 Benchmark						Closed	-28.1%	-35.8%	7.8%
S&P C			93.26			Open	24.9%	1.6%	23.2%

ADY - Rollercoaster

ADY - It isn't an MFI stock, but I have mentioned it on this blog a couple of times. It is post-worthy today as they lost about 40% of their market cap (American Dairy Falls 40% as Growth Wanes). The irony is that the stock has essentially done a round trip. It was $20 a few months ago when I mentioned they had a blow-out quarter. They shot up to $44 and now have fallen back to $20.

When I read their press release (American Dairy Provides 2Q09 and FY2009 Revenue Guidance and Business Update) here is what I think happened: One big driver of the blow-out 1st quarter was that China was in the process of changing labeling laws. That caused ADY to sell more than usual as orders were placed before the laws changed. In the 2nd quarter, the laws changed and they are having a poor quarter as all the stores had excess inventory to run-off AND ADY perhaps took too long to get the product with new lables to market. But now I think they are ready to go back to a normal run-rate.

And what is that run-rate? Well they had $56m of sales in q4, $113m in q109, they are saying $41m in q209 and they forecast $330 to $360m for all of 2009. That gives a run rate of $90m per quarter moving forward. I think if that is true, ADY represents a stellar bargain right now as people panicked without thinking in through.

The $90m run-rate would be 80% growth over 2008. At their current margins, 330m would be operating income of about $71m. That would translate into eps around $3.50 a share. I gotta think the stock price will move back towards $30 if it becomes clearer what is going on. Of course I did buy a few shares at $20 (full disclosure) today. Not as part of my MFI portfolio, but as a short-term speculative play.

I did add SGR (Shaw Group) to my mechanical portfolio. As I mentioned Saturday, I will not be adding them at this time to my RL portfolio, but will consider if price drops further.

We'll see what happens in the ADY-saga this week.

Another Week - Dog Days of Summer

My MFI portfolio has been wilting a bit in the summer heat. Not a disaster, but I am giving up some of my gains through the end of May. We're still up 42% ytd, but I have seen in the past how quickly that can disappear. Here is my chart:



If you have the courage, my annualized internal rate of return is -8.8%, which won't get you rich very quickly.

My mechanical portfolios continue to fare decently, at least they are in the black and are "socking" the S&P 500:

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
QCOR	7/26/08	4.84	5.19	-	125.48	2.49	7.2%	-27.9%	35.2%
MSTR	8/1/08	60.56	51.06	-	126.16	2.49	-15.7%	-28.3%	12.6%
NVDA	8/8/08	11.00	10.37	-	129.37	2.49	-5.7%	-30.1%	24.4%
SWIR	8/8/08	12.41	5.42	-	129.37	2.49	-56.3%	-30.1%	-26.2%
CF	8/8/08	134.65	69.62	0.10	129.37	2.49	-48.2%	-30.1%	-18.1%
SIGM	8/8/08	15.93	14.56	-	129.37	2.49	-8.6%	-30.1%	21.5%
EGMI.OB	9/5/08	0.69	1.15	-	124.42	2.49	66.7%	-27.3%	94.0%
KHD	9/15/08	20.68	8.28	-	126.09	2.49	-60.0%	-28.3%	-31.7%
TTWO	9/22/08	16.57	8.84	-	124.12	2.49	-46.7%	-27.1%	-19.5%
SCMP	9/29/08	8.29	5.78	-	120.85	1.80	-30.3%	-25.7%	-4.5%
DTLK	9/29/08	4.34	4.18	-	120.85	1.80	-3.7%	-25.7%	22.0%
TRA	9/29/08	28.42	25.18	0.20	120.85	1.80	-10.7%	-25.7%	15.0%
MSB	10/10/08	10.12	9.93	0.40	88.50	1.80	2.1%	1.4%	0.7%
UEPS	10/10/08	14.58	12.50	-	88.50	1.80	-14.3%	1.4%	-15.7%
TSCM	10/17/08	3.67	1.96	0.03	93.21	1.80	-45.9%	-3.7%	-42.2%
EME	10/31/08	17.77	18.44	-	96.83	1.80	3.8%	-7.3%	11.1%
CTCM	10/31/08	7.40	9.83	-	96.83	1.80	32.8%	-7.3%	40.1%
PRGX	10/31/08	4.24	2.72	-	96.83	1.80	-35.8%	-7.3%	-28.5%
HLF	11/7/08	20.17	29.37	0.40	93.86	1.80	47.6%	-4.4%	52.0%
GHM	11/7/08	13.60	11.02	0.02	93.86	1.80	-18.8%	-4.4%	-14.5%
BIDZ	11/21/08	2.39	3.27	-	79.52	1.80	36.8%	12.9%	23.9%
KBR	11/21/08	10.45	16.91	0.10	79.52	1.80	62.8%	12.9%	49.9%
OPTV	11/21/08	0.94	1.23	-	79.52	1.80	30.9%	12.9%	18.0%
IBAS	11/21/08	1.21	1.30	-	79.52	1.80	7.4%	12.9%	-5.4%
Vclk	11/28/08	6.17	10.11	-	90.09	1.80	63.9%	-0.4%	64.2%
DIVX	12/8/08	4.37	5.10	-	87.93	1.80	16.7%	2.1%	14.6%
MAXY	12/8/08	5.80	7.00	-	87.93	1.80	20.7%	2.1%	18.6%
ESIC	12/14/08	1.13	1.54	-	88.99	1.80	36.3%	0.9%	35.4%
MSO	12/29/08	2.80	2.85	-	87.16	1.08	1.8%	2.2%	-0.4%
TRMS	12/29/08	1.03	2.00	-	87.16	1.08	94.2%	2.2%	92.0%
WFR	12/29/08	13.43	16.61	-	87.16	1.08	23.7%	2.2%	21.5%
AHCI	1/5/09	1.15	2.10	-	92.96	1.08	82.6%	-4.2%	86.8%
CKSW	1/5/09	1.99	5.55	-	92.96	1.08	178.9%	-4.2%	183.1%
COH	2/16/09	13.97	23.56	-	82.76	1.08	68.6%	7.6%	61.1%
DELL	2/23/09	8.41	13.22	-	77.42	1.08	57.2%	15.0%	42.2%
SOLR	2/23/09	4.22	4.77	-	77.42	1.08	13.0%	15.0%	-2.0%
DECK	3/2/09	41.27	65.25	-	73.93	1.08	58.1%	20.4%	37.7%
FWLT	3/2/09	15.04	19.32	-	73.93	1.08	28.5%	20.4%	8.0%
HCKT	3/2/09	2.56	2.27	-	73.93	1.08	-11.3%	20.4%	-31.8%
MWW	3/2/09	6.59	10.21	-	73.93	1.08	54.9%	20.4%	34.5%
PTIE	3/2/09	4.53	4.35	-	73.93	1.08	-4.0%	20.4%	-24.4%
TRLG	3/2/09	10.22	19.64	-	73.93	1.08	92.2%	20.4%	71.7%
qlti	3/9/09	1.41	2.05	-	68.92	1.08	45.4%	29.2%	16.2%
exbd	3/9/09	12.96	16.85	0.44	68.92	1.08	33.4%	29.2%	4.2%
FIX	3/16/09	9.73	9.76		76.09	1.08	0.3%	17.0%	-16.7%
DBTK	3/16/09	6.65	8.12	-	76.09	1.08	22.1%	17.0%	5.1%
LOOP	3/16/09	5.77	7.59	-	76.09	1.08	31.5%	17.0%	14.5%
PRO	3/30/09	4.29	7.73	-	81.61	0.52	80.2%	8.4%	71.8%
ACN	4/13/09	27.71	32.70	-	85.81	0.52	18.0%	3.1%	14.9%
INFI	4/20/09	5.83	5.68	-	87.08	0.52	-2.6%	1.6%	-4.2%
RST	5/3/09	29.83	26.23	-	87.89	0.52	-12.1%	0.7%	-12.7%
ULCM.pk	5/3/09	2.18	1.95	-	87.89	0.52	-10.6%	0.7%	-11.2%
TYPE	5/3/09	3.80	6.50	-	87.89	0.52	71.1%	0.7%	70.4%
CRAY	5/3/09	3.98	7.77	-	87.89	0.52	95.2%	0.7%	94.6%
INT	5/10/09	41.90	37.37	-	92.98	0.52	-10.8%	-4.8%	-6.0%
IPHS	5/18/09	15.03	16.28	-	88.71	0.52	8.3%	-0.3%	8.6%
GNI	6/1/09	86.75	78.00	-	92.53	0.52	-10.1%	-4.4%	-5.7%
UTA	6/1/09	7.90	9.49	-	92.53	0.52	20.1%	-4.4%	24.5%
FRX	6/7/09	23.66	23.80	-	94.55	0.52	0.6%	-6.4%	7.0%
ONTY	6/14/09	2.60	3.12	-	95.08	0.52	20.0%	-6.9%	26.9%
VM	6/14/09	4.24	3.23	-	95.08	0.52	-23.8%	-6.9%	-16.9%
BPI	6/21/09	16.74	15.85	-	92.04	-	-5.3%	-4.4%	-0.9%
MTXX	6/28/09	5.77	5.48	-	91.84	-	-5.0%	-4.2%	-0.8%
JTX	6/28/09	5.74	5.29	-	91.84	-	-7.8%	-4.2%	-3.6%
						Totals	6.0%	-11.7%	17.6%
67.8% of stocks beat the S&P 500 Benchmark						Closed	-20.8%	-35.6%	14.8%
S&P C			87.96			Open	17.7%	-1.2%	18.9%

Finally, while changes to mechanical portfolios are not official until the Sunday publishing in the MFI website, it does look like a new stock will be entering the top 50 screen: SGR. These guys are along the lines of KBR, JEC and FLR which have been on the charts for the past 6+ months. I don't think I'll buy SGR unless they fall to the top 25 screen. I have listed their calcs below.

One thought I had about the way MagicDiligence picks their stocks and my mechanical approach. My approach has the adavtantage of waiting to see if the price drops further. I have never seen MD review a stock and then add it later when the price dropped another 20%. Isn't it often a better buy then... even if it wasn't a "top buy" previously? My mechanical approach may force the stock to fall all the way to the top 30 screen, when it is really cheap.

Here is SGR:

		sgr
+	Operating Income After Depreciation	325.92
-	Minority Interest - Income Account	15.58
=	Income for Calculation	310.34
	Diluted Shares Outstanding	84.647
	Share Price	23.69
+	Market Cap Calc	2,005.29
+	Preferred Capital	-
+	Debt in Current Liabilities	1,361.37
+	Long-Term Debt	5.74
	Cash and Short-Term Investments	2,248.03
-	Excess Cash	1,894.22
=	Enterprise Value	1,478.18
+	Property Plant and Equipment - Net	337.78
+	Receivables	832.57
+	Inventories	748.24
+	Other Current Assests	311.91
+	Working Cash	353.81
-	Accounts Payable	708.20
-	Current Liabilities - Other	1,538.33
=	Invested Capital	337.78
	Earnings Yield	21%
	ROIC	92%

It's All Gravy

Not a great day for the good guys. My portfolio certainly has a Chinese leaning and it wasn't a good day for Chinese stocks.

CDII -8%
CMED -2.5%
CSKI -2.9%
QXM -5.8%
UTA -5.9%
WH -4.8%

But the good news is that I found a new stock that I suspect will shortly show up on the lists: GRVY. It was up 50% today on stellar earnings (Gravity Reports First Quarter of 2009 Results) and I suspect their chart will look like ADY when they had great earnings last May (ADY went from $19 to $40 in about 2 weeks).

I calculated wht GRVY's ratios would be with the recent quarter added in:

		grvy
+	Operating Income After Depreciation	5.73
-	Minority Interest - Income Account	0.05
=	Income for Calculation	5.67
	Diluted Shares Outstanding	27.796
	Share Price	1.60
+	Market Cap Calc	44.47
+	Preferred Capital	-
+	Debt in Current Liabilities	-
+	Long-Term Debt	-
	Cash and Short-Term Investments	47.34
-	Excess Cash	47.34
=	Enterprise Value	(2.86)
+	Property Plant and Equipment - Net	4.09
+	Receivables	5.12
+	Inventories	-
+	Other Current Assests	4.36
+	Working Cash	-
-	Accounts Payable	2.42
-	Current Liabilities - Other	3.52
=	Invested Capital	7.63
	Earnings Yield	-198%
	ROIC	74%

Look at the numbers. Even after today's 50% run-up, they have a market cap of 44m and 47m of cash (actually now 53m, I did not update that). The shareholder equity is $68m, so they are trading at about 2/3 of book value.

Revenues are ramping up, +32% over last year and up 9% sequentially. If/when the stock crosses the $50m market cap barrier, they should hit the charts as the earning yield is essentially off the chart and ROIC is very good at 74%. Toss that in with growth and trading under BV and this is one appealing stock... and you guessed it, I bought in today.

They are in the online gaming industry, certainly a low capital industry... but also has low barriers to entry. We'll see how it works out.

The Other Shoe?

I know I have been expecting a correction and I guess it is official as even people like Cramer and Kudlow (the penultimate bull) think we're going down from here. I feel good about my portfolio as we head into rocky waters. My MFI portfolio is part in cash. And then about 10% of my overall portfolio is in SDS, which is a double short of the S&P 500. I have been doing a little hedging since May, so if I put 10K into a stock, I put 5K into SDS. My overall portfolio (MFI and other) is up 33% YTD and I wanted to reduce the chances of that frittering away. Anyway, it worked very well today. While the overall market was down about 2%, I was down just 0.2%.

Even my MFI portfolio (which clearly is long only, except for the cash) was down 0.8% today, so it also held up relatively well. The outperformance was primarily caused by QXM. QXM, for no reason I can discern, jumped 7.5% today on heavy volume.

Some stock have really pulled back in my portfolio and looked pretty darned attractive:

CMED - $18.77: recall they preannounced a very solid quarter (China Medical Technologies Announces Selected Unaudited Preliminary Financial Results for the Fourth Fiscal Quarter and Full Year Ended March 31, 2009) and jumped over $24 on that news and now have slid back down.

CSKI - $12.86. The shorts love to bash this stock, but if you have any faith that the financials are correct they are cheap, cheap cheap, with $3 a share in cash, trading at 4x ebitda and growing 38% this year and forecast to grow 24% next year.

UTA - $9.63. the little Chinese travel agency that could, it is very volatile, but has potential to be a double at these prices.

JTX - $5.25. I know MD just said don't buy (Stock Review: Jackson Hewitt Tax Service (JTX)), but I am not so convinced that this isn't a nice turn-around story with the new management team.

GME - $20.46. They have insider buying, solid balance sheet, people are doing more trading of used games, which my 11 year-old son loves to do. What is not to like (except they are in retail)?

I don't know what I'll do. I also expect the market to drop, so I won't be in a rush to buy anything... not at least without the hedge. My next buy may still be MTXX as I mentioned last week. If they somehow drop below $5, I think I'll be in with both feet.

Back From Break

Well, I am back. First, I am not sure evryone saw this interview with JG: Answers from Joel Greenblatt are Here!. Good stuff for people to read. Clearly, we mere peons can not track how he is investing his money as he states in the Q&A. He certainly defends his approach, though he discoyrages people from trying to go long on his top stocks and then going short the worst stocks as he says this could be too volatile. He also still believes in the concentrated portfolio for those who know what they are doing as the recent crash in his mind proves that disversification isn't worth much.

No new stocks made the screen this weekend. The newbies from last weekend (JTX & MTXX) are off to a respectable start. Three stocks from my mechanical portfolio closed this weekend:

Symbol	Date	Stock Chg	S&P Chg	Diff
APKT	7/5/08	119.5%	-26.9%	146.4%
CSKI	7/5/08	20.9%	-26.9%	47.8%
VALU	7/5/08	7.8%	-26.9%	34.8%

That would have been a good group to have bought a year ago! Overall, my mechanicl top 30 is outperforming the S&P by a whopping 20 points. Here are the open stocks (note 64 open stocks):

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
QCOR	7/26/08	4.84	5.27	-	125.48	2.49	8.9%	-26.4%	35.3%
MSTR	8/1/08	60.56	49.33	-	126.16	2.49	-18.5%	-26.8%	8.3%
NVDA	8/8/08	11.00	10.90	-	129.37	2.49	-0.9%	-28.7%	27.7%
SWIR	8/8/08	12.41	5.45	-	129.37	2.49	-56.1%	-28.7%	-27.4%
CF	8/8/08	134.65	74.29	0.10	129.37	2.49	-44.8%	-28.7%	-16.1%
SIGM	8/8/08	15.93	15.34	-	129.37	2.49	-3.7%	-28.7%	25.0%
EGMI.OB	9/5/08	0.69	1.19	-	124.42	2.49	72.5%	-25.8%	98.3%
KHD	9/15/08	20.68	8.46	-	126.09	2.49	-59.1%	-26.8%	-32.3%
TTWO	9/22/08	16.57	9.84	-	124.12	2.49	-40.6%	-25.6%	-15.0%
SCMP	9/29/08	8.29	5.68	-	120.85	1.80	-31.5%	-24.2%	-7.3%
DTLK	9/29/08	4.34	4.25	-	120.85	1.80	-2.1%	-24.2%	22.1%
TRA	9/29/08	28.42	26.00	0.20	120.85	1.80	-7.8%	-24.2%	16.4%
MSB	10/10/08	10.12	11.03	0.40	88.50	1.80	12.9%	3.5%	9.4%
UEPS	10/10/08	14.58	13.50	-	88.50	1.80	-7.4%	3.5%	-10.9%
TSCM	10/17/08	3.67	2.02	0.03	93.21	1.80	-44.3%	-1.7%	-42.6%
EME	10/31/08	17.77	19.54	-	96.83	1.80	10.0%	-5.4%	15.4%
CTCM	10/31/08	7.40	10.92	-	96.83	1.80	47.6%	-5.4%	53.0%
PRGX	10/31/08	4.24	2.91	-	96.83	1.80	-31.4%	-5.4%	-26.0%
HLF	11/7/08	20.17	30.62	0.40	93.86	1.80	53.8%	-2.4%	56.2%
GHM	11/7/08	13.60	13.00	0.02	93.86	1.80	-4.3%	-2.4%	-1.9%
BIDZ	11/21/08	2.39	2.91	-	79.52	1.80	21.8%	15.2%	6.6%
KBR	11/21/08	10.45	17.84	0.10	79.52	1.80	71.7%	15.2%	56.5%
OPTV	11/21/08	0.94	1.28	-	79.52	1.80	36.2%	15.2%	21.0%
IBAS	11/21/08	1.21	1.39	-	79.52	1.80	14.9%	15.2%	-0.3%
Vclk	11/28/08	6.17	9.97	-	90.09	1.80	61.6%	1.7%	59.9%
DIVX	12/8/08	4.37	5.18	-	87.93	1.80	18.5%	4.2%	14.4%
MAXY	12/8/08	5.80	7.09	-	87.93	1.80	22.2%	4.2%	18.1%
ESIC	12/14/08	1.13	1.63	-	88.99	1.80	44.2%	2.9%	41.3%
MSO	12/29/08	2.80	2.92	-	87.16	1.08	4.3%	4.3%	0.0%
TRMS	12/29/08	1.03	2.05	-	87.16	1.08	99.0%	4.3%	94.8%
WFR	12/29/08	13.43	17.49	-	87.16	1.08	30.2%	4.3%	26.0%
AHCI	1/5/09	1.15	2.00	-	92.96	1.08	73.9%	-2.2%	76.1%
CKSW	1/5/09	1.99	6.20	-	92.96	1.08	211.6%	-2.2%	213.8%
COH	2/16/09	13.97	25.80	-	82.76	1.08	84.7%	9.8%	74.9%
DELL	2/23/09	8.41	12.97	-	77.42	1.08	54.2%	17.4%	36.8%
SOLR	2/23/09	4.22	5.41	-	77.42	1.08	28.2%	17.4%	10.8%
DECK	3/2/09	41.27	68.29	-	73.93	1.08	65.5%	22.9%	42.5%
FWLT	3/2/09	15.04	21.99	-	73.93	1.08	46.2%	22.9%	23.3%
HCKT	3/2/09	2.56	2.48	-	73.93	1.08	-3.1%	22.9%	-26.1%
MWW	3/2/09	6.59	11.06	-	73.93	1.08	67.8%	22.9%	44.9%
PTIE	3/2/09	4.53	5.41	-	73.93	1.08	19.4%	22.9%	-3.5%
TRLG	3/2/09	10.22	21.38	-	73.93	1.08	109.2%	22.9%	86.3%
qlti	3/9/09	1.41	2.13	-	68.92	1.08	51.1%	31.9%	19.2%
exbd	3/9/09	12.96	20.13	0.44	68.92	1.08	58.7%	31.9%	26.8%
FIX	3/16/09	9.73	10.29		76.09	1.08	5.8%	19.4%	-13.7%
DBTK	3/16/09	6.65	8.54	-	76.09	1.08	28.4%	19.4%	9.0%
LOOP	3/16/09	5.77	7.54	-	76.09	1.08	30.7%	19.4%	11.2%
PRO	3/30/09	4.29	7.89	-	81.61	0.52	83.9%	10.7%	73.2%
ACN	4/13/09	27.71	33.14	-	85.81	0.52	19.6%	5.3%	14.3%
INFI	4/20/09	5.83	5.42	-	87.08	0.52	-7.0%	3.7%	-10.8%
RST	5/3/09	29.83	27.00	-	87.89	0.52	-9.5%	2.8%	-12.3%
ULCM.pk	5/3/09	2.18	1.96	-	87.89	0.52	-10.1%	2.8%	-12.9%
TYPE	5/3/09	3.80	6.28	-	87.89	0.52	65.3%	2.8%	62.5%
CRAY	5/3/09	3.98	8.16	-	87.89	0.52	105.0%	2.8%	102.3%
INT	5/10/09	41.90	39.82	-	92.98	0.52	-5.0%	-2.9%	-2.1%
IPHS	5/18/09	15.03	16.90	-	88.71	0.52	12.4%	1.8%	10.6%
GNI	6/1/09	86.75	86.00	-	92.53	0.52	-0.9%	-2.4%	1.5%
UTA	6/1/09	7.90	10.32	-	92.53	0.52	30.6%	-2.4%	33.0%
FRX	6/7/09	23.66	24.26	-	94.55	0.52	2.5%	-4.5%	7.0%
ONTY	6/14/09	2.60	3.63	-	95.08	0.52	39.7%	-5.0%	44.7%
VM	6/14/09	4.24	3.45	-	95.08	0.52	-18.6%	-5.0%	-13.6%
BPI	6/21/09	16.74	15.46	-	92.04	-	-7.6%	-2.4%	-5.2%
MTXX	6/28/09	5.77	6.48	-	91.84	-	12.3%	-2.2%	14.5%
JTX	6/28/09	5.74	5.95	-	91.84	-	3.7%	-2.2%	5.9%
						Totals	10.3%	-10.2%	20.5%
73.6% of stocks beat the S&P 500 Benchmark						Closed	-20.8%	-35.6%	14.8%
S&P C			89.81			Open	23.8%	0.9%	23.0%

Happy 4th!

Hey everyone (all 6 of you)! Have a great 4th of July. We're heading out tomorrow for a little well-deserved R&R in the White Mountains of NH, and then we're going to see the fireworks on the Charles River in Boston. Cross your fingers we don't get entirely washed out, but we'll have fun either way. It is always nice to get off the rock.

I have to say I am glad I fought the urge to sell CKSW early (I wrote about the temptation at $5.89). On this crummy day it was up 22 cents to $6.60. So the stock is up 232% for moi. That is it tonight, short and sweet.

JTX Details

Albert tried to match my numbers for JTX. JG mentions in his book that different data sources have different numbers, which I find amazing. He says he uses S&P Compustat, which he finds to be the most reliable. I use Fidelity, which uses S&P Compustat. Here are the links for JTX from Fidelity:

http://research2.fidelity.com/fidelity/research/reports/printPage.asp?symbols=jtx&printPage=financials&toPrint=true&statement=income&period=quarterly&viewType=detailed

http://research2.fidelity.com/fidelity/research/reports/printPage.asp?symbols=jtx&printPage=financials&toPrint=true&statement=balance&period=quarterly&viewType=detailed

I find that if I use these I matched the old MFI sites virtually exactly (Kdad on Yahoo boards found the same with a program he wrote). Now that the MFI site no longer shows the earning yield and return on capital, I find it more important to be able to replicate.

One weird thing, sometimes it seems that companies don't show up and I do not understand it. After looking at JTX, I ran their competitor HRB (who had good earnings last night). They looked great. Not sure why they don't show up in screen (does the site consider them a financial?).

		hrb
+	Operating Income After Depreciation	813.43
-	Minority Interest - Income Account	-
=	Income for Calculation	813.43
	Diluted Shares Outstanding	338.687
	Share Price	15.67
+	Market Cap Calc	5,307.23
+	Preferred Capital	-
+	Debt in Current Liabilities	803.52
+	Long-Term Debt	2,002.65
	Cash and Short-Term Investments	1,345.10
-	Excess Cash	1,345.10
=	Enterprise Value	6,768.29
+	Property Plant and Equipment - Net	383.70
+	Receivables	2,642.95
+	Inventories	--
+	Other Current Assests	425.04
+	Working Cash	-
-	Accounts Payable	2,850.46
-	Current Liabilities - Other	206.96
=	Invested Capital	394.28
	Earnings Yield	12%
	ROIC	206%

Taxing Decision

I neglected to mention over the weekend that there were two new stocks in the mechanical top 30 screen: MTXX and JTX. I find both of these to be rather interesting. I did own MTXX earlier this year, but sold it prematurely (thankfully). Their problems are well-chronicled with their nasal spray being pulled off the market due to some people losing their sense of smell. Everyone is running around like their hair is on fire about MTXX right now... but their fear could be an opportunity. They have $4.20 a share in cash and trade 28% under book value. The question will be how much will their income drop? I ran my calc routine assuming the income drops in half:

		mtxx
+	Operating Income After Depreciation	12.16
-	Minority Interest - Income Account	-
=	Income for Calculation	12.16
	Diluted Shares Outstanding	9.400
	Share Price	5.50
+	Market Cap Calc	51.70
+	Preferred Capital	-
+	Debt in Current Liabilities	-
+	Long-Term Debt	-
	Cash and Short-Term Investments	40.02
-	Excess Cash	40.02
=	Enterprise Value	11.69
+	Property Plant and Equipment - Net	4.13
+	Receivables	16.12
+	Inventories	7.74
+	Other Current Assests	3.67
+	Working Cash	-
-	Accounts Payable	3.01
-	Current Liabilities - Other	12.47
=	Invested Capital	16.19
	Earnings Yield	104%
	ROIC	75%

I didn't pull the trigger today on MTXX, but I am intrigued. If there is another sell-off, I might take a flier around $5.20. We'll see.

JTX is a stock I know well. I have owned them twice as an MFI stock in the past, and it wasn't exactly a rewarding experience. However, I do wonder if they have hit bottom. They have a brand new CEO and the stock popped about 40% when they hired the new guy (or was it because the old guy left?). The stock settled back down after a so-so earnings report. They have said they are going to look at making some major changes, might be a chance to get in on ground floor... I still think this franchise can get back to being a $20 stock under good managment... heck everyone has to do taxes, even with our new president. So I did buy-in today at $5.54, looks like a good entry price. My one concern is they have more debt than I'd like. Here's the calc worksheet for JTX:

		jtx
+	Operating Income After Depreciation	57.47
-	Minority Interest - Income Account	-
=	Income for Calculation	57.47
	Diluted Shares Outstanding	28.570
	Share Price	6.01
+	Market Cap Calc	171.71
+	Preferred Capital	-
+	Debt in Current Liabilities	-
+	Long-Term Debt	232.00
	Cash and Short-Term Investments	0.31
-	Excess Cash	0.31
=	Enterprise Value	403.40
+	Property Plant and Equipment - Net	27.69
+	Receivables	30.84
+	Inventories	-
+	Other Current Assests	19.80
+	Working Cash	-
-	Accounts Payable	33.69
-	Current Liabilities - Other	10.37
=	Invested Capital	34.26
	Earnings Yield	14%
	ROIC	168%

Update on My Performance

Here is my current portfolio, more "MFI" since I removed ENH-A & RNR-C:

FSUMF	115%
CKSW	205%
WH	49%
ICO	31%
UTA	46%
CSKI	33%
WILC	27%
QXM	5%
CMED	5%
CDII	18%
PFE	6%
ENDP	8%
FRX	9%
UEPS	3%
AIRV	3%
GME	2%
VM	2%
HCKT	0%
CHCG	-16%
KHD	-57%

We're up 117% from our lows in November, we're up 53% YTD, we're 13.5 points above the benchmark, but sadly we're 16% below breakeven. As a reminder, I have been at this for 3 1/2 years now.

Mechanical Update - Unbelievable!

My mechanical portfolio is actually starting to simulate the returns as promised in the book. The top 30 portfolio is up all-in-all by 13.8% and is beating the benchmark by a whopping 22.6 points! The open stocks are doing even better, up 30.4% and beating the benchmark by over 28%. I don't know about you, but I am starting to be convinced.

Not to brag, but here is the summary:


Mech top 30: +13.8% vs S&P Everything: -8.8% Mech 30 +22.6 points
Mech top 50: +8.4% vs S&P Everything -12.0% Mech 50 up 20.4 points

Then for open stocks

Mech top 30: +30.4% vs S&P Open: +1.9% Mech 30 +28.5 points
Mech top 50: +23.8% vs S&P Open -2.0% Mech 50 up 25.8 points

Even my monthly tacking portfolios have the open stocks up 9.9% vs IWV -2.6% for a 12.5 point lead.

I think it is working. Just being mechanical/random. Here is top 50 so far:

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
MFLO	1/26/08	12.42	22.01	-	133.04	1.31	77.2%	-0.4%	77.6%
AIRV	2/2/08	5.22	5.09	-	139.58	2.72	-2.5%	-38.7%	36.2%
CDNS	2/2/08	10.61	3.78	-	139.58	2.72	-64.4%	-38.7%	-25.7%
GHM	2/2/08	17.01	9.96	0.08	139.58	2.72	-41.0%	-38.7%	-2.3%
LIVE	2/2/08	5.25	1.50	-	139.58	2.72	-71.4%	-38.7%	-32.7%
VSEC	2/2/08	28.07	28.76	0.09	139.58	2.72	2.8%	-38.7%	41.5%
CJR	2/13/08	21.81	11.10	0.48	136.37	2.72	-46.9%	-37.3%	-9.6%
FORM	2/13/08	20.09	16.06	-	136.37	2.72	-20.1%	-37.3%	17.3%
MMS	2/13/08	37.32	37.59	0.42	136.37	2.72	1.8%	-37.3%	39.2%
KLAC	2/16/08	40.75	19.70	0.60	135.14	2.72	-50.2%	-36.7%	-13.8%
NVTL	2/16/08	13.35	6.34	-	135.14	2.72	-52.5%	-36.7%	-15.8%
GSB	2/23/08	3.53	0.56	-	135.62	2.72	-84.1%	-40.9%	-43.2%
TPX	2/23/08	16.67	6.46	0.24	135.62	2.72	-59.8%	-40.9%	-18.9%
VSEA	2/23/08	32.87	18.90	-	135.62	2.72	-42.5%	-40.9%	-1.6%
BOLT	3/1/08	17.39	6.43	-	133.82	2.72	-63.0%	-42.7%	-20.3%
CHRD	3/1/08	5.78	2.14	-	133.82	2.72	-63.0%	-42.7%	-20.3%
MRX	3/1/08	20.47	11.28	0.12	133.82	2.72	-44.3%	-42.7%	-1.6%
ELOS	3/1/08	16.19	5.22	-	133.82	2.72	-67.8%	-42.7%	-25.0%
AMSWA	3/12/08	5.76	3.17	0.36	131.36	2.08	-38.7%	-46.0%	7.2%
CRDN	3/12/08	29.28	14.87	-	131.36	2.08	-49.2%	-46.0%	-3.3%
CROX	3/12/08	20.59	1.19	-	131.36	2.08	-94.2%	-46.0%	-48.3%
DEPO	3/12/08	2.97	2.12	-	131.36	2.08	-28.6%	-46.0%	17.3%
EME	3/12/08	22.24	14.31	-	131.36	2.08	-35.7%	-46.0%	10.3%
ELNK	3/12/08	7.34	6.13	-	131.36	2.08	-16.5%	-46.0%	29.5%
IGC	3/12/08	3.70	0.44	-	131.36	2.08	-88.1%	-46.0%	-42.2%
OMPI	3/12/08	9.55	4.05	-	131.36	2.08	-57.6%	-46.0%	-11.6%
SNVNF.PK	3/12/08	1.18	0.52	-	131.36	2.08	-56.3%	-46.0%	-10.3%
TBI	3/12/08	12.42	6.17	-	131.36	2.08	-50.3%	-46.0%	-4.4%
ALLI	3/22/08	4.08	4.43	-	132.08	2.08	8.6%	-36.4%	45.0%
FIX	3/22/08	12.93	10.52	0.14	132.08	2.08	-17.6%	-36.4%	18.8%
DWCH	3/22/08	3.18	1.18	-	132.08	2.08	-62.9%	-36.4%	-26.5%
TRA	3/22/08	35.85	28.25	0.40	132.08	2.08	-20.1%	-36.4%	16.3%
NTRI	4/6/08	14.91	14.25	0.70	136.89	2.08	0.3%	-34.9%	35.1%
BID	4/6/08	26.57	10.00	0.60	136.89	2.08	-60.1%	-34.9%	-25.2%
FDRY	4/11/08	11.57	16.66	-	133.38	2.08	44.0%	-33.2%	77.1%
MWW	4/11/08	22.23	11.89	-	133.38	2.08	-46.5%	-33.2%	-13.4%
CHE	4/19/08	40.84	41.47	0.18	138.48	2.08	2.0%	-35.6%	37.6%
SLP	4/19/08	1.71	1.19	-	138.48	2.08	-30.4%	-35.6%	5.2%
LQDT	4/26/08	8.43	8.94	-	139.60	2.64	6.0%	-36.0%	42.1%
NHWK	4/26/08	7.28	2.99	-	139.60	2.64	-58.9%	-36.0%	-22.9%
QCOR	5/2/08	4.38	4.49	-	141.51	2.64	2.5%	-36.0%	38.5%
WINS	5/2/08	4.86	6.24	-	141.51	2.08	28.4%	-34.7%	63.1%
SILC	5/2/08	8.80	6.73	-	141.51	2.64	-23.5%	-36.0%	12.5%
SYX	5/2/08	16.50	16.93	-	141.51	2.64	2.6%	-36.0%	38.6%
ASF	5/9/08	27.44	22.67	0.39	138.90	2.64	-16.0%	-34.0%	18.0%
SWIR	5/9/08	17.73	6.08	-	138.90	2.64	-65.7%	-34.0%	-31.7%
SNCR	5/9/08	12.79	11.31	-	138.90	2.64	-11.6%	-34.0%	22.4%
BR	5/16/08	21.68	17.39	0.19	142.66	2.64	-18.9%	-35.8%	16.8%
PROJ	5/16/08	9.00	4.08	-	142.66	2.64	-54.7%	-35.8%	-18.9%
MD	5/16/08	55.75	41.67	-	142.66	2.64	-25.3%	-35.8%	10.5%
NSR	5/25/08	22.27	19.59	-	137.64	2.64	-12.0%	-33.4%	21.4%
SPSS	5/28/08	38.89	33.37	-	139.30	2.64	-14.2%	-31.7%	17.5%
CSKI	5/31/08	13.30	14.74	-	140.35	2.64	10.8%	-32.2%	43.0%
SIGM	5/31/08	18.50	15.46	-	140.35	2.64	-16.4%	-32.2%	15.8%
ZINC	6/6/08	12.78	8.03	-	136.29	2.64	-37.2%	-28.7%	-8.5%
DYII	6/15/08	7.00	3.37	-	136.15	2.64	-51.8%	-28.2%	-23.6%
ESIC	6/21/08	3.44	1.58	-	131.58	2.64	-54.1%	-28.0%	-26.0%
NCMI	6/21/08	12.59	13.44	0.32	131.58	2.64	9.3%	-28.0%	37.3%
BIDZ	6/28/08	8.85	2.96	-	127.53	2.64	-66.6%	-25.9%	-40.6%
RMCF	6/28/08	9.63	7.76	0.20	127.53	2.64	-17.3%	-25.9%	8.6%
APKT	7/5/08	4.62	9.96	-	126.31	2.49	115.6%	-25.3%	140.9%
HANS	7/5/08	25.25	31.77	-	126.31	2.49	25.8%	-25.3%	51.1%
MTW	7/5/08	27.58	5.29	0.08	126.31	2.49	-80.5%	-25.3%	-55.2%
NVDA	7/5/08	12.49	11.57	-	126.31	2.49	-7.4%	-25.3%	18.0%
BA	7/12/08	63.28	41.88	1.22	123.84	2.49	-31.9%	-23.8%	-8.1%
CHH	7/12/08	23.24	26.29	0.37	123.84	2.49	14.7%	-23.8%	38.5%
MSFT	7/20/08	25.86	23.35	0.26	125.98	2.49	-8.7%	-25.1%	16.4%
VCLK	7/20/08	10.20	11.72	-	125.98	2.49	14.9%	-25.1%	40.0%
SHFK.PK	7/26/08	27.50	15.10	-	125.48	2.49	-45.1%	-24.8%	-20.3%
IBAS	7/26/08	3.90	1.10	-	125.48	2.49	-71.8%	-24.8%	-47.0%
CF	8/8/08	134.65	76.19	0.20	129.37	2.49	-43.3%	-27.1%	-16.2%
ANF	8/8/08	50.38	26.16	0.35	129.37	2.49	-47.4%	-27.1%	-20.3%
AYSI.OB	8/8/08	1.77	0.38	-	129.37	2.49	-78.8%	-27.1%	-51.7%
DEIX	8/8/08	1.70	0.16	-	129.37	2.49	-90.6%	-27.1%	-63.5%
PRFT	8/8/08	7.36	6.84	-	129.37	2.49	-7.1%	-27.1%	20.0%
TEX	8/8/08	47.22	12.40	-	129.37	2.49	-73.7%	-27.1%	-46.7%
DBTK	8/8/08	11.20	8.90	-	129.37	2.49	-20.5%	-27.1%	6.6%
GRMN	8/8/08	37.09	23.64	0.38	129.37	2.49	-35.3%	-27.1%	-8.2%
KHD	8/8/08	25.26	8.28	-	129.37	2.49	-67.2%	-27.1%	-40.1%
LOOP	8/8/08	10.50	7.89	-	129.37	2.49	-24.9%	-27.1%	2.2%
LO	8/8/08	68.41	67.76	1.84	129.37	2.49	1.7%	-27.1%	28.8%
MPAA	8/8/08	6.60	4.00	-	129.37	2.49	-39.4%	-27.1%	-12.3%
STX	8/8/08	15.00	10.27	0.12	129.37	2.49	-30.7%	-27.1%	-3.6%
BARE	8/26/08	12.81	8.35	-	127.39	2.49	-34.8%	-26.0%	-8.9%
EGN	8/26/08	53.56	40.30	0.25	127.39	2.49	-24.3%	-26.0%	1.7%
PRM	8/26/08	3.02	1.80	0.07	127.39	2.49	-38.1%	-26.0%	-12.1%
LOV	8/26/08	4.26	2.50	-	127.39	2.49	-41.3%	-26.0%	-15.4%
SCMP	9/2/08	9.50	6.60	-	128.79	2.49	-30.5%	-26.8%	-3.8%
EGMI.OB	9/6/08	0.69	1.29	-	124.42	2.49	87.0%	-24.2%	111.1%
MLNX	9/6/08	10.61	12.45	-	124.42	2.49	17.3%	-24.2%	41.5%
WFR	9/15/08	34.34	17.96	-	126.09	2.49	-47.7%	-25.2%	-22.5%
KBR	9/15/08	19.17	18.66	0.05	126.09	2.49	-2.4%	-25.2%	22.8%
DELL	9/22/08	16.63	13.68	-	124.12	2.49	-17.7%	-24.0%	6.3%
NGA	9/22/08	6.50	6.39	-	124.12	2.49	-1.7%	-24.0%	22.3%
TTWO	9/22/08	16.57	9.50	-	124.12	2.49	-42.7%	-24.0%	-18.7%
FWLT	10/6/08	31.91	23.77	-	110.34	1.80	-25.5%	-15.1%	-10.4%
MOS	10/6/08	40.88	43.35	0.05	110.34	1.80	6.2%	-15.1%	21.3%
WRLS	10/6/08	1.82	2.06	-	110.34	1.80	13.2%	-15.1%	28.3%
TSCM	10/6/08	5.09	2.16	0.03	110.34	1.80	-57.1%	-15.1%	-41.9%
CTCM	10/10/08	9.02	12.40	-	88.50	1.80	37.5%	5.8%	31.7%
DAR	10/10/08	7.55	6.80	-	88.50	1.80	-9.9%	5.8%	-15.7%
NOV	10/10/08	23.42	33.10	-	88.50	1.80	41.3%	5.8%	35.5%
PRGX	10/10/08	4.69	2.55	-	88.50	1.80	-45.6%	5.8%	-51.4%
PCP	10/10/08	54.15	73.17	0.04	88.50	1.80	35.2%	5.8%	29.4%
ALDN	10/10/08	9.64	11.49	-	88.50	1.80	19.2%	5.8%	13.4%
GPX	10/17/08	5.03	6.71	-	93.21	1.80	33.4%	0.5%	32.9%
BKE	10/31/08	26.34	31.47	0.20	96.83	1.80	20.2%	-3.3%	23.5%
CYNO	10/31/08	8.76	7.60	-	96.83	1.80	-13.2%	-3.3%	-9.9%
DHX	10/31/08	4.06	4.90	-	96.83	1.80	20.7%	-3.3%	24.0%
GES	10/31/08	21.77	26.08	0.10	96.83	1.80	20.3%	-3.3%	23.6%
HWAY	10/31/08	10.10	14.50	-	96.83	1.80	43.6%	-3.3%	46.9%
WBC	10/31/08	18.37	18.09	0.07	96.83	1.80	-1.1%	-3.3%	2.2%
GTLS	11/7/08	11.62	19.51	-	93.86	1.80	67.9%	-0.2%	68.1%
CDII	11/7/08	2.77	1.43	-	93.86	1.80	-48.4%	-0.2%	-48.1%
IPHS	11/7/08	19.97	16.23	0.17	93.86	1.80	-17.9%	-0.2%	-17.6%
MSPD	11/7/08	1.31	2.30	-	93.86	1.80	75.6%	-0.2%	75.8%
QLGC	11/7/08	11.49	12.55	-	93.86	1.80	9.2%	-0.2%	9.5%
SCHN	11/7/08	27.07	61.36	-	93.86	1.80	126.7%	-0.2%	126.9%
SVR	11/7/08	8.92	16.66	-	93.86	1.80	86.8%	-0.2%	87.0%
TDC	11/7/08	14.48	23.06	-	93.86	1.80	59.3%	-0.2%	59.5%
EBAY	10/31/08	14.19	17.35	-	96.83	1.80	22.3%	-3.3%	25.6%
TKTM	11/14/08	5.87	6.51	-	86.62	1.80	10.9%	8.1%	2.8%
ERES	11/14/08	4.65	6.41	-	86.62	1.80	37.8%	8.1%	29.7%
FEED	11/14/08	1.76	6.00	-	86.62	1.80	240.9%	8.1%	232.8%
HCKT	11/14/08	2.57	2.31	-	86.62	1.80	-10.1%	8.1%	-18.2%
FLR	11/14/08	35.73	51.83	0.13	86.62	1.80	45.4%	8.1%	37.3%
GTI	11/14/08	4.79	11.51	-	86.62	1.80	140.3%	8.1%	132.2%
INTX	11/14/08	4.10	4.22	-	86.62	1.80	2.9%	8.1%	-5.2%
MSO	11/14/08	3.91	3.20	-	86.62	1.80	-18.2%	8.1%	-26.3%
JCG	11/14/08	11.22	26.25	-	86.62	1.80	134.0%	8.1%	125.9%
MDR	11/14/08	7.80	20.55	-	86.62	1.80	163.5%	8.1%	155.4%
ABAT	11/21/08	1.34	4.06	-	79.52	1.80	203.0%	17.8%	185.2%
ADSK	11/21/08	14.37	19.75	-	79.52	1.80	37.4%	17.8%	19.7%
GIGM	11/21/08	3.79	5.81	-	79.52	1.80	53.3%	17.8%	35.5%
OPTV	11/21/08	0.94	1.38	-	79.52	1.80	46.8%	17.8%	29.1%
PRO	11/21/08	4.14	8.87	-	79.52	1.80	114.3%	17.8%	96.5%
WTSLA	11/21/08	2.20	3.20	-	79.52	1.80	45.5%	17.8%	27.7%
AIRT	11/28/08	6.08	8.52	-	90.09	1.80	40.1%	3.9%	36.2%
BSQR	11/28/08	2.48	2.58	-	90.09	1.80	4.0%	3.9%	0.1%
CKSW	11/28/08	2.20	6.07	-	90.09	1.80	175.9%	3.9%	172.0%
IILG	11/28/08	5.30	9.49	-	90.09	1.80	79.1%	3.9%	75.1%
PBSO.PK	11/28/08	0.39	0.35	-	90.09	1.80	-10.3%	3.9%	-14.2%
DIVX	12/8/08	4.37	5.99	-	87.93	1.80	37.1%	6.5%	30.6%
GSIT	12/8/08	2.94	3.88	-	87.93	1.80	32.0%	6.5%	25.5%
HGRD	12/8/08	1.35	4.40	-	87.93	1.80	225.9%	6.5%	219.4%
ISIL	12/8/08	7.92	12.90	0.12	87.93	1.80	64.4%	6.5%	57.9%
MAXY	12/8/08	5.80	7.30	-	87.93	1.80	25.9%	6.5%	19.4%
PVSW	12/8/08	3.80	6.08	-	87.93	1.80	60.0%	6.5%	53.5%
DDMX	12/14/08	11.13	15.44	-	88.99	1.80	38.7%	5.2%	33.5%
PSOF	12/14/08	2.74	4.26	-	88.99	1.80	55.5%	5.2%	50.3%
ITWO	12/29/08	5.61	12.23	-	87.16	1.08	118.0%	6.6%	111.4%
JOYG	12/29/08	21.95	36.55	-	87.16	1.08	66.5%	6.6%	59.9%
TRMS	12/29/08	1.03	2.06	-	87.16	1.08	100.0%	6.6%	93.4%
CTGX	1/5/09	3.18	6.87	-	92.96	1.08	116.0%	0.0%	116.1%
PMD	1/5/09	6.44	6.77	-	92.96	1.08	5.1%	0.0%	5.2%
HPY	1/26/09	8.54	9.13	-	83.11	1.08	6.9%	11.8%	-4.9%
HLIT	1/31/09	5.15	6.05	-	82.83	1.08	17.5%	12.2%	5.3%
HGT	1/31/09	13.06	14.25	-	82.83	1.08	9.1%	12.2%	-3.1%
CNU	2/9/09	1.96	2.49	-	86.98	1.08	27.0%	6.8%	20.2%
SJT	2/9/09	19.05	14.32	-	86.98	1.08	-24.8%	6.8%	-31.7%
SGU	2/9/09	2.55	3.62	0.07	86.98	1.08	44.6%	6.8%	37.8%
TC	2/9/09	4.33	10.44	-	86.98	1.08	141.1%	6.8%	134.3%
BITI	2/16/09	3.72	3.67	-	82.76	1.08	-1.3%	12.3%	-13.6%
FORR	2/16/09	17.56	24.48	-	82.76	1.08	39.4%	12.3%	27.1%
ZYXI.OB	2/16/09	1.20	0.84	-	82.76	1.08	-30.0%	12.3%	-42.3%
FRD	2/23/09	4.95	6.44	-	77.42	1.08	30.1%	20.0%	10.1%
SOLR	2/23/09	4.22	5.73	-	77.42	1.08	35.8%	20.0%	15.8%
MTXX	2/23/09	17.90	5.77	-	77.42	1.08	-67.8%	20.0%	-87.8%
TYPE	2/23/09	3.02	7.21	-	77.42	1.08	138.7%	20.0%	118.7%
PTIE	2/23/09	5.41	5.61	-	77.42	1.08	3.7%	20.0%	-16.3%
PDO	2/23/09	3.19	5.56	-	77.42	1.08	74.3%	20.0%	54.3%
SAPE	2/23/09	3.38	6.10	-	77.42	1.08	80.5%	20.0%	60.5%
VDSI	2/23/09	5.25	7.32	-	77.42	1.08	39.4%	20.0%	19.4%
IGTE	2/23/09	2.99	6.61	-	77.42	1.08	121.1%	20.0%	101.1%
DECK	3/2/09	41.27	73.90	-	73.93	1.08	79.1%	25.7%	53.4%
KTII	3/2/09	55.48	82.55	-	73.93	1.08	48.8%	25.7%	23.1%
INT	3/2/09	29.01	39.81	-	73.93	1.08	37.2%	25.7%	11.5%
ICAD	3/2/09	0.90	1.33	-	77.42	1.08	47.8%	20.0%	27.8%
EXBD	3/9/09	12.96	20.67	-	68.92	1.08	59.5%	34.8%	24.7%
DISH	3/9/09	9.27	15.81	-	68.92	1.08	70.6%	34.8%	35.7%
QLTI	3/9/09	1.41	2.16	-	68.92	1.08	53.2%	34.8%	18.4%
SRDX	3/9/09	16.87	23.26	-	68.92	1.08	37.9%	34.8%	3.1%
INFI	4/20/09	5.83	6.05	-	87.08	0.52	3.8%	6.1%	-2.3%
CRAY	5/3/09	3.98	7.86	-	87.89	0.52	97.5%	5.1%	92.4%
TWX	5/3/09	22.84	24.95	-	87.89	0.52	9.2%	5.1%	4.2%
RST	5/3/09	29.83	27.20	-	87.89	0.52	-8.8%	5.1%	-13.9%
ULCM.PK	5/3/09	2.18	1.91	-	87.89	0.52	-12.4%	5.1%	-17.5%
AAV	5/18/09	3.41	4.36	-	88.71	0.52	27.9%	4.1%	23.7%
AMED	6/1/09	30.43	33.20	-	92.53	0.52	9.1%	-0.2%	9.3%
UTA	6/1/09	7.90	11.50	-	92.53	0.52	45.6%	-0.2%	45.8%
PFE	6/7/09	14.51	15.19	-	94.55	0.52	4.7%	-2.3%	7.0%
VM	6/7/09	4.55	4.38	-	94.55	0.52	-3.7%	-2.3%	-1.4%
ONTY	6/14/09	2.60	3.45	-	95.08	0.52	32.7%	-2.9%	35.6%
BPI	6/21/09	16.74	16.85	-	92.04	-	0.7%	-0.2%	0.9%
GME	6/21/09	22.95	22.17	-	92.04	-	-3.4%	-0.2%	-3.2%
						Totals	8.4%	-12.0%	20.4%
57.4% of stocks beat the S&P 500 Benchmark						Closed	-30.8%	-37.6%	6.8%
S&P C			91.84			Open	23.8%	-2.0%	25.8%

AHCI - Join the Club

Every year around this time I look to see if any MFI stocks will be eligible to join the Russell 3000 as that often boosts their share price. I was fortunate to own UTA, which announced they were joining the Russell 3000 the other day (Universal Travel Group to be Added to Russell Indexes). Since that announcement they are up about 10%.

Well AHCI announced yesterday they are being added to the club as well (Allied Healthcare International Inc. to Join Russell 3000 Index). I was stunned. Last year it took about a 260m market cap to make it. With the overall market drop, I thought maybe 180 to 200m would make it this year... but AHCI is at 91m! I might have to buy a few shares this morning... we'll see... probably not. But I'll be interested to see if their stock moves today.

CKSW at 52 Week High

CKSW is almost a triple for me as I bought them January 5th at $1.99 and they closed today at $5.88, up 8% on heavy volume. That places them at a 52 week high. It sure is tempting to sell them, but I am following the rules... so watch me tear out my hair if they decline back! That is my 2nd triple this year, TC was the first. FSUMF is my next hope, up 118%.

One wild thing I have noticed since buying PFE is how negative people are about the stock (I am up 7%). Here are some of the plethora of nay-sayers:

Large Pharma Set for EPS Cuts
Against the Grain: Sell Pfizer!
Pfizer: Still Limited Upside

I know it isn't a sexy stock, except perhaps for users of the purple pill... but it seemed pretty beaten down to me and after the Wyeth deal closes, I think the stock can move towards $18. Plus a 4% dividend. I was simply looking for some ballast.

Added GME

I bought GME on Monday, per the mechanical portfolio and then added more on Tuesday when it dropped sharply early in the day. I also added to my positions on Tuesday to UEPS, CMED, VM and UTA it what today was an extremely timely move. At the same time, I moved RNR-C and ENH-A out of my MFI portfolio to try and move to a more traditional MFI portfolio.

My stock contest in down to just a week left. It looks like JeffC will win. I list the standings below:

Row Labels	Average of Pct Change
JeffC	-1.9%
MFI >100m	-11.7%
Wynona	-12.7%
MarshG	-14.6%
JohnB	-18.2%
JuanC	-20.5%
Newest	-21.4%
PeterC	-21.6%
Sideview	-24.8%
GlennR	-25.3%
TonyB	-26.1%
RichardP	-27.0%
Russell Value	-27.3%
Ken	-27.6%
S&P 500	-28.0%
SteveH	-29.6%
Devolution_9	-29.8%
Al	-31.0%
AlexG	-31.3%
Roberts1001	-31.5%
FortyDown	-31.7%
MFI>2b	-31.9%
TimK	-32.8%
EdwardU	-34.9%
Impossibled	-39.1%
Eric	-39.1%
SteveB	-45.1%
Grand Total	-26.5%

The eye-catching item is that the simple top 25 list of 100m and greater did better than all but one portfolio. And it beat the S&P by 17 points. It also beat the Magic Diligence portfolio (as of July 1st last year and held for a year) by 11 points. What does this suggest? JG said it in his book that picking your own stocks is like running through a dynamite factory with a lit match. You might make it out, but it still isn't a good idea. I would suggest we all have our vision of what is a good stock, straight out of Finance 101 and we are biased towards picking those stocks in these sorts of contests and stay away from what turned out to be the big winners:

TPX +58% (mattresses in a recession?)
ICFI + 56% (they were in the news in a bad way almost daily with handling of Katrina victims)
BVF + 49% (poster child company for egregious management behavior)
CAST +57%
CPSI +120%
USMO +97% (pagers in today's economy???)

That is a reason I am going to lean more on the mechanical approach. Funny, I did look today at the official MFI website where they will now manage your money for you. I thought it'd be like a mutual fund. But literally you have two choices: (1) you give them money and they select stocks for you per the rules or (2) you give them money but then direct them how to buy and sell stocks.

I am not sure how (2) is different from doing it yourself in a Fidleity account? The annual cost (for either plan) is 1% of your assets. I suppose if you have $25,000 with them, that is pretty good... $250 a year. But if you have $500,000 with them, you'd be paying $5,000 a year for exactly the same service... so I only think their cost structure makes sense for small investors. I know I trade more than I should, but $5,000 a year would be hard to spend a year at $8 a trade at Fidelity. Also they charge the same whether they give you advice or not. Weird.

Fresh Air(v)

One stock I bought recently was AIRV, which has been on the list for some time. What I like about the stock is the exposure to wireless communications, which seems like an area with still a ton of room for growth as smartphones become more commonplace.

I listened to their presentation on June 9th. They were very bullish about their relationships with wireless carriers. I believe they said that about 90% of their revenues are recurring, so they have great predictability and visibility. They did talk about the bankruptcy of Nortel and the impact on them. The interesting thing about the NT bankruptcy is that AIRV fully believes they will get the $36m they are owed by NT (but doesn't show up in receivables) by early next year. If they get that amount, it'll be like the icing on the cake as they look pretty good even without that.

AIRV also had an interesting press release during Happy Hours on Friday where they comment on the assumption by (Airvana Comments on Proposed Sale of Nortel's CDMA Business) Nokia-Siemens of the Nortel business. They basically say "Nortel’s proposed sale of its CDMA business is positive news for Airvana and for Nortel’s customers,". Hopefully that will be good for ye ole stock price (currently at $5.89).

New Mechanical Stocks - BPI & GME

Two new stocks will be entering my out-performing mechanical portfolios (top 30 and top 50). As a reminder, a stock is entered into the mechanical portfolio for a year if it is new to either screen in the past 52 weeks. The new stocks are BPI, a recent IPO offering online education and GME, a stock my 11 year-old son knows, Gamestop. BPI is added to both portfolios and GME is only new to the top 50.

I am now using the mechanical portfolios for real investment decisions. The top 30 is up 10% overall and is outperforming the S&P 500 by 19.7 points. The top 50 is similar, up by 6.4 and outperforming by 18.7 points.

Here are my calculations of earnings yield and return on working capital for each stock:

		bpi	gme
+	Operating Income After Depreciation	47.42	698.26
-	Minority Interest - Income Account	-	-
=	Income for Calculation	47.42	698.26
	Diluted Shares Outstanding	52.374	168
	Share Price	16.74	22.95
+	Market Cap Calc	876.74	3,854.96
+	Preferred Capital	27.54	-
+	Debt in Current Liabilities	0.23	-
+	Long-Term Debt	0.39	495.57
	Cash and Short-Term Investments	79.82	230.26
-	Excess Cash	14.77	230.26
=	Enterprise Value	890.13	4,120.27
+	Property Plant and Equipment - Net	34.70	559.44
+	Receivables	39.63	47.27
+	Inventories	0.30	1,160.77
+	Other Current Assests	12.37	88.79
+	Working Cash	65.05	-
-	Accounts Payable	3.85	775.55
-	Current Liabilities - Other	113.50	411.10
=	Invested Capital	34.70	669.62
	Earnings Yield	5%	17%
	ROIC	137%	104%

It is funny. I am a little gunshy on recent IPOs after the Rosetta Stone fiasco. BPI seems similar. The MFI screen says the market cap is 69m, which I am sure gives them a high earnings yield. But I get 876m, which is consistent with Yahoo and the 52m shares I show o/s combined with a $16 stock price. I don't think BPI should be on the screen and will say so on the board. I will, however, include in my mechanical portfolio as it is mechanical.

I like GME, the have no debt and I think the worst may be behind them. I will buy them on Monday per my intentions to begin following the mechanical approach more completely... as it seems to work pretty well.

Here is a listing of top 50 in the mechanical portfolio. Two stocks were closed out this weekend, ESIC and NCMI.

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
MFLO	1/26/08	12.42	22.01	-	133.04	1.31	77.2%	-0.4%	77.6%
AIRV	2/2/08	5.22	5.09	-	139.58	2.72	-2.5%	-38.7%	36.2%
CDNS	2/2/08	10.61	3.78	-	139.58	2.72	-64.4%	-38.7%	-25.7%
GHM	2/2/08	17.01	9.96	0.08	139.58	2.72	-41.0%	-38.7%	-2.3%
LIVE	2/2/08	5.25	1.50	-	139.58	2.72	-71.4%	-38.7%	-32.7%
VSEC	2/2/08	28.07	28.76	0.09	139.58	2.72	2.8%	-38.7%	41.5%
CJR	2/13/08	21.81	11.10	0.48	136.37	2.72	-46.9%	-37.3%	-9.6%
FORM	2/13/08	20.09	16.06	-	136.37	2.72	-20.1%	-37.3%	17.3%
MMS	2/13/08	37.32	37.59	0.42	136.37	2.72	1.8%	-37.3%	39.2%
KLAC	2/16/08	40.75	19.70	0.60	135.14	2.72	-50.2%	-36.7%	-13.8%
NVTL	2/16/08	13.35	6.34	-	135.14	2.72	-52.5%	-36.7%	-15.8%
GSB	2/23/08	3.53	0.56	-	135.62	2.72	-84.1%	-40.9%	-43.2%
TPX	2/23/08	16.67	6.46	0.24	135.62	2.72	-59.8%	-40.9%	-18.9%
VSEA	2/23/08	32.87	18.90	-	135.62	2.72	-42.5%	-40.9%	-1.6%
BOLT	3/1/08	17.39	6.43	-	133.82	2.72	-63.0%	-42.7%	-20.3%
CHRD	3/1/08	5.78	2.14	-	133.82	2.72	-63.0%	-42.7%	-20.3%
MRX	3/1/08	20.47	11.28	0.12	133.82	2.72	-44.3%	-42.7%	-1.6%
ELOS	3/1/08	16.19	5.22	-	133.82	2.72	-67.8%	-42.7%	-25.0%
AMSWA	3/12/08	5.76	3.17	0.36	131.36	2.08	-38.7%	-46.0%	7.2%
CRDN	3/12/08	29.28	14.87	-	131.36	2.08	-49.2%	-46.0%	-3.3%
CROX	3/12/08	20.59	1.19	-	131.36	2.08	-94.2%	-46.0%	-48.3%
DEPO	3/12/08	2.97	2.12	-	131.36	2.08	-28.6%	-46.0%	17.3%
EME	3/12/08	22.24	14.31	-	131.36	2.08	-35.7%	-46.0%	10.3%
ELNK	3/12/08	7.34	6.13	-	131.36	2.08	-16.5%	-46.0%	29.5%
IGC	3/12/08	3.70	0.44	-	131.36	2.08	-88.1%	-46.0%	-42.2%
OMPI	3/12/08	9.55	4.05	-	131.36	2.08	-57.6%	-46.0%	-11.6%
SNVNF.PK	3/12/08	1.18	0.52	-	131.36	2.08	-56.3%	-46.0%	-10.3%
TBI	3/12/08	12.42	6.17	-	131.36	2.08	-50.3%	-46.0%	-4.4%
ALLI	3/22/08	4.08	4.43	-	132.08	2.08	8.6%	-36.4%	45.0%
FIX	3/22/08	12.93	10.52	0.14	132.08	2.08	-17.6%	-36.4%	18.8%
DWCH	3/22/08	3.18	1.18	-	132.08	2.08	-62.9%	-36.4%	-26.5%
TRA	3/22/08	35.85	28.25	0.40	132.08	2.08	-20.1%	-36.4%	16.3%
NTRI	4/6/08	14.91	14.25	0.70	136.89	2.08	0.3%	-34.9%	35.1%
BID	4/6/08	26.57	10.00	0.60	136.89	2.08	-60.1%	-34.9%	-25.2%
FDRY	4/11/08	11.57	16.66	-	133.38	2.08	44.0%	-33.2%	77.1%
MWW	4/11/08	22.23	11.89	-	133.38	2.08	-46.5%	-33.2%	-13.4%
CHE	4/19/08	40.84	41.47	0.18	138.48	2.08	2.0%	-35.6%	37.6%
SLP	4/19/08	1.71	1.19	-	138.48	2.08	-30.4%	-35.6%	5.2%
LQDT	4/26/08	8.43	8.94	-	139.60	2.64	6.0%	-36.0%	42.1%
NHWK	4/26/08	7.28	2.99	-	139.60	2.64	-58.9%	-36.0%	-22.9%
QCOR	5/2/08	4.38	4.49	-	141.51	2.64	2.5%	-36.0%	38.5%
WINS	5/2/08	4.86	6.24	-	141.51	2.08	28.4%	-34.7%	63.1%
SILC	5/2/08	8.80	6.73	-	141.51	2.64	-23.5%	-36.0%	12.5%
SYX	5/2/08	16.50	16.93	-	141.51	2.64	2.6%	-36.0%	38.6%
ASF	5/9/08	27.44	22.67	0.39	138.90	2.64	-16.0%	-34.0%	18.0%
SWIR	5/9/08	17.73	6.08	-	138.90	2.64	-65.7%	-34.0%	-31.7%
SNCR	5/9/08	12.79	11.31	-	138.90	2.64	-11.6%	-34.0%	22.4%
BR	5/16/08	21.68	17.39	0.19	142.66	2.64	-18.9%	-35.8%	16.8%
PROJ	5/16/08	9.00	4.08	-	142.66	2.64	-54.7%	-35.8%	-18.9%
MD	5/16/08	55.75	41.67	-	142.66	2.64	-25.3%	-35.8%	10.5%
NSR	5/25/08	22.27	19.59	-	137.64	2.64	-12.0%	-33.4%	21.4%
SPSS	5/28/08	38.89	33.37	-	139.30	2.64	-14.2%	-31.7%	17.5%
CSKI	5/31/08	13.30	14.74	-	140.35	2.64	10.8%	-32.2%	43.0%
SIGM	5/31/08	18.50	15.46	-	140.35	2.64	-16.4%	-32.2%	15.8%
ZINC	6/6/08	12.78	8.03	-	136.29	2.64	-37.2%	-28.7%	-8.5%
DYII	6/15/08	7.00	3.37	-	136.15	2.64	-51.8%	-28.2%	-23.6%
ESIC	6/21/08	3.44	1.58	-	131.58	2.64	-54.1%	-28.0%	-26.0%
NCMI	6/21/08	12.59	13.44	0.32	131.58	2.64	9.3%	-28.0%	37.3%
BIDZ	6/28/08	8.85	2.85	-	127.53	2.64	-67.8%	-25.8%	-42.0%
RMCF	6/28/08	9.63	8.02	0.20	127.53	2.64	-14.6%	-25.8%	11.1%
APKT	7/5/08	4.62	9.38	-	126.31	1.97	103.0%	-25.6%	128.6%
HANS	7/5/08	25.25	30.77	-	126.31	1.97	21.9%	-25.6%	47.4%
MTW	7/5/08	27.58	5.82	0.08	126.31	1.97	-78.6%	-25.6%	-53.0%
NVDA	7/5/08	12.49	11.18	-	126.31	1.97	-10.5%	-25.6%	15.1%
BA	7/12/08	63.28	48.44	1.22	123.84	1.97	-21.5%	-24.1%	2.6%
CHH	7/12/08	23.24	25.74	0.37	123.84	1.97	12.3%	-24.1%	36.4%
MSFT	7/20/08	25.86	24.07	0.26	125.98	1.97	-5.9%	-25.4%	19.5%
VCLK	7/20/08	10.20	11.26	-	125.98	1.97	10.4%	-25.4%	35.8%
SHFK.PK	7/26/08	27.50	15.10	-	125.48	1.97	-45.1%	-25.1%	-20.0%
IBAS	7/26/08	3.90	1.24	-	125.48	1.97	-68.2%	-25.1%	-43.1%
CF	8/8/08	134.65	74.99	0.20	129.37	1.97	-44.2%	-27.3%	-16.8%
ANF	8/8/08	50.38	26.01	0.35	129.37	1.97	-47.7%	-27.3%	-20.3%
AYSI.OB	8/8/08	1.77	0.35	-	129.37	1.97	-80.2%	-27.3%	-52.9%
DEIX	8/8/08	1.70	0.16	-	129.37	1.97	-90.6%	-27.3%	-63.3%
PRFT	8/8/08	7.36	7.04	-	129.37	1.97	-4.3%	-27.3%	23.0%
TEX	8/8/08	47.22	12.67	-	129.37	1.97	-73.2%	-27.3%	-45.8%
DBTK	8/8/08	11.20	9.05	-	129.37	1.97	-19.2%	-27.3%	8.1%
GRMN	8/8/08	37.09	22.27	0.38	129.37	1.97	-38.9%	-27.3%	-11.6%
KHD	8/8/08	25.26	8.35	-	129.37	1.97	-66.9%	-27.3%	-39.6%
LOOP	8/8/08	10.50	7.50	-	129.37	1.97	-28.6%	-27.3%	-1.2%
LO	8/8/08	68.41	69.05	1.84	129.37	1.97	3.6%	-27.3%	31.0%
MPAA	8/8/08	6.60	4.00	-	129.37	1.97	-39.4%	-27.3%	-12.1%
STX	8/8/08	15.00	9.69	0.12	129.37	1.97	-34.6%	-27.3%	-7.3%
BARE	8/26/08	12.81	8.25	-	127.39	1.97	-35.6%	-26.2%	-9.4%
EGN	8/26/08	53.56	39.78	0.25	127.39	1.97	-25.3%	-26.2%	0.9%
PRM	8/26/08	3.02	2.50	0.07	127.39	1.97	-14.9%	-26.2%	11.3%
LOV	8/26/08	4.26	2.44	-	127.39	1.97	-42.7%	-26.2%	-16.5%
SCMP	9/2/08	9.50	5.76	-	128.79	1.97	-39.4%	-27.0%	-12.4%
EGMI.OB	9/6/08	0.69	1.34	-	124.42	1.97	94.2%	-24.4%	118.6%
MLNX	9/6/08	10.61	11.54	-	124.42	1.97	8.8%	-24.4%	33.2%
WFR	9/15/08	34.34	19.14	-	126.09	1.97	-44.3%	-25.4%	-18.8%
KBR	9/15/08	19.17	18.65	0.05	126.09	1.97	-2.5%	-25.4%	23.0%
DELL	9/22/08	16.63	13.29	-	124.12	1.97	-20.1%	-24.3%	4.2%
NGA	9/22/08	6.50	6.00	-	124.12	1.97	-7.7%	-24.3%	16.6%
TTWO	9/22/08	16.57	8.46	-	124.12	1.97	-48.9%	-24.3%	-24.7%
FWLT	10/6/08	31.91	24.81	-	110.34	1.28	-22.3%	-15.4%	-6.8%
MOS	10/6/08	40.88	46.45	0.05	110.34	1.28	13.7%	-15.4%	29.2%
WRLS	10/6/08	1.82	2.04	-	110.34	1.28	12.1%	-15.4%	27.5%
TSCM	10/6/08	5.09	2.21	0.03	110.34	1.28	-56.1%	-15.4%	-40.7%
CTCM	10/10/08	9.02	10.59	-	88.50	1.28	17.4%	5.4%	12.0%
DAR	10/10/08	7.55	7.22	-	88.50	1.28	-4.4%	5.4%	-9.8%
NOV	10/10/08	23.42	34.33	-	88.50	1.28	46.6%	5.4%	41.1%
PRGX	10/10/08	4.69	2.66	-	88.50	1.28	-43.3%	5.4%	-48.7%
PCP	10/10/08	54.15	79.87	0.04	88.50	1.28	47.6%	5.4%	42.1%
ALDN	10/10/08	9.64	11.49	-	88.50	1.28	19.2%	5.4%	13.7%
GPX	10/17/08	5.03	4.95	-	93.21	1.28	-1.6%	0.1%	-1.7%
BKE	10/31/08	26.34	31.12	0.20	96.83	1.28	18.9%	-3.6%	22.5%
CYNO	10/31/08	8.76	7.69	-	96.83	1.28	-12.2%	-3.6%	-8.6%
DHX	10/31/08	4.06	5.30	-	96.83	1.28	30.5%	-3.6%	34.2%
GES	10/31/08	21.77	24.76	0.10	96.83	1.28	14.2%	-3.6%	17.8%
HWAY	10/31/08	10.10	13.69	-	96.83	1.28	35.5%	-3.6%	39.2%
WBC	10/31/08	18.37	17.21	0.07	96.83	1.28	-5.9%	-3.6%	-2.3%
GTLS	11/7/08	11.62	19.86	-	93.86	1.28	70.9%	-0.6%	71.5%
CDII	11/7/08	2.77	1.60	-	93.86	1.28	-42.2%	-0.6%	-41.7%
IPHS	11/7/08	19.97	16.54	0.17	93.86	1.28	-16.3%	-0.6%	-15.7%
MSPD	11/7/08	1.31	2.21	-	93.86	1.28	68.7%	-0.6%	69.3%
QLGC	11/7/08	11.49	12.87	-	93.86	1.28	12.0%	-0.6%	12.6%
SCHN	11/7/08	27.07	60.14	-	93.86	1.28	122.2%	-0.6%	122.7%
SVR	11/7/08	8.92	14.97	-	93.86	1.28	67.8%	-0.6%	68.4%
TDC	11/7/08	14.48	23.01	-	93.86	1.28	58.9%	-0.6%	59.5%
EBAY	10/31/08	14.19	17.28	-	96.83	1.28	21.8%	-3.6%	25.4%
TKTM	11/14/08	5.87	7.19	-	86.62	1.28	22.5%	7.7%	14.8%
ERES	11/14/08	4.65	6.51	-	86.62	1.28	40.0%	7.7%	32.3%
FEED	11/14/08	1.76	6.24	-	86.62	1.28	254.5%	7.7%	246.8%
HCKT	11/14/08	2.57	2.25	-	86.62	1.28	-12.5%	7.7%	-20.2%
FLR	11/14/08	35.73	50.27	0.13	86.62	1.28	41.0%	7.7%	33.3%
GTI	11/14/08	4.79	11.31	-	86.62	1.28	136.1%	7.7%	128.4%
INTX	11/14/08	4.10	4.74	-	86.62	1.28	15.6%	7.7%	7.9%
MSO	11/14/08	3.91	3.09	-	86.62	1.28	-21.0%	7.7%	-28.7%
JCG	11/14/08	11.22	25.43	-	86.62	1.28	126.6%	7.7%	118.9%
MDR	11/14/08	7.80	20.54	-	86.62	1.28	163.3%	7.7%	155.6%
ABAT	11/21/08	1.34	3.75	-	79.52	1.28	179.9%	17.4%	162.5%
ADSK	11/21/08	14.37	20.54	-	79.52	1.28	42.9%	17.4%	25.6%
GIGM	11/21/08	3.79	5.50	-	79.52	1.28	45.1%	17.4%	27.8%
OPTV	11/21/08	0.94	1.30	-	79.52	1.28	38.3%	17.4%	20.9%
PRO	11/21/08	4.14	8.45	-	79.52	1.28	104.1%	17.4%	86.8%
WTSLA	11/21/08	2.20	3.48	-	79.52	1.28	58.2%	17.4%	40.8%
AIRT	11/28/08	6.08	8.57	-	90.09	1.28	41.0%	3.6%	37.4%
BSQR	11/28/08	2.48	2.38	-	90.09	1.28	-4.0%	3.6%	-7.6%
CKSW	11/28/08	2.20	5.48	-	90.09	1.28	149.1%	3.6%	145.5%
IILG	11/28/08	5.30	9.45	-	90.09	1.28	78.3%	3.6%	74.7%
PBSO.PK	11/28/08	0.39	0.31	-	90.09	1.28	-20.5%	3.6%	-24.1%
DIVX	12/8/08	4.37	5.51	-	87.93	1.28	26.1%	6.1%	20.0%
GSIT	12/8/08	2.94	3.44	-	87.93	1.28	17.0%	6.1%	10.9%
HGRD	12/8/08	1.35	3.75	-	87.93	1.28	177.8%	6.1%	171.6%
ISIL	12/8/08	7.92	12.56	0.12	87.93	1.28	60.1%	6.1%	54.0%
MAXY	12/8/08	5.80	6.60	-	87.93	1.28	13.8%	6.1%	7.7%
PVSW	12/8/08	3.80	5.64	-	87.93	1.28	48.4%	6.1%	42.3%
DDMX	12/14/08	11.13	16.00	-	88.99	1.28	43.8%	4.9%	38.9%
PSOF	12/14/08	2.74	4.70	-	88.99	1.28	71.5%	4.9%	66.7%
ITWO	12/29/08	5.61	12.00	-	87.16	0.56	113.9%	6.2%	107.7%
JOYG	12/29/08	21.95	36.60	-	87.16	0.56	66.7%	6.2%	60.5%
TRMS	12/29/08	1.03	2.19	-	87.16	0.56	112.6%	6.2%	106.4%
CTGX	1/5/09	3.18	5.53	-	92.96	0.56	73.9%	-0.4%	74.3%
PMD	1/5/09	6.44	6.70	-	92.96	0.56	4.0%	-0.4%	4.4%
HPY	1/26/09	8.54	8.72	-	83.11	0.56	2.1%	11.4%	-9.3%
HLIT	1/31/09	5.15	6.36	-	82.83	0.56	23.5%	11.8%	11.7%
HGT	1/31/09	13.06	14.04	-	82.83	0.56	7.5%	11.8%	-4.3%
CNU	2/9/09	1.96	2.50	-	86.98	0.56	27.6%	6.5%	21.1%
SJT	2/9/09	19.05	16.30	-	86.98	0.56	-14.4%	6.5%	-20.9%
SGU	2/9/09	2.55	3.55	-	86.98	0.56	39.2%	6.5%	32.8%
TC	2/9/09	4.33	10.54	-	86.98	0.56	143.4%	6.5%	137.0%
BITI	2/16/09	3.72	3.72	-	82.76	0.56	0.0%	11.9%	-11.9%
FORR	2/16/09	17.56	24.88	-	82.76	0.56	41.7%	11.9%	29.8%
ZYXI.OB	2/16/09	1.20	1.00	-	82.76	0.56	-16.7%	11.9%	-28.6%
FRD	2/23/09	4.95	6.15	-	77.42	0.56	24.2%	19.6%	4.6%
SOLR	2/23/09	4.22	5.80	-	77.42	0.56	37.4%	19.6%	17.8%
MTXX	2/23/09	17.90	5.55	-	77.42	0.56	-69.0%	19.6%	-88.6%
TYPE	2/23/09	3.02	6.02	-	77.42	0.56	99.3%	19.6%	79.7%
PTIE	2/23/09	5.41	5.06	-	77.42	0.56	-6.5%	19.6%	-26.1%
PDO	2/23/09	3.19	6.21	-	77.42	0.56	94.7%	19.6%	75.1%
SAPE	2/23/09	3.38	5.91	-	77.42	0.56	74.9%	19.6%	55.2%
VDSI	2/23/09	5.25	7.40	-	77.42	0.56	41.0%	19.6%	21.3%
IGTE	2/23/09	2.99	6.18	-	77.42	0.56	106.7%	19.6%	87.1%
DECK	3/2/09	41.27	69.18	-	73.93	0.56	67.6%	25.3%	42.4%
KTII	3/2/09	55.48	79.73	-	73.93	0.56	43.7%	25.3%	18.5%
INT	3/2/09	29.01	41.72	-	73.93	0.56	43.8%	25.3%	18.6%
ICAD	3/2/09	0.90	1.21	-	77.42	0.56	34.4%	19.6%	14.8%
EXBD	3/9/09	12.96	20.45	-	68.92	0.56	57.8%	34.4%	23.4%
DISH	3/9/09	9.27	15.18	-	68.92	0.56	63.8%	34.4%	29.4%
QLTI	3/9/09	1.41	2.32	-	68.92	0.56	64.5%	34.4%	30.2%
SRDX	3/9/09	16.87	21.87	-	68.92	0.56	29.6%	34.4%	-4.7%
INFI	4/20/09	5.83	5.24	-	87.08	-	-10.1%	5.7%	-15.8%
CRAY	5/3/09	3.98	6.71	-	87.89	-	68.6%	4.7%