Thursday, March 01, 2007

Another Addition – Slight Change in Strategy

Well, another day in the books. This most likely will not be my worst week ever, but it is near the bottom. Somehow though I did gain ground today on the benchmark.

I did add another stock today. As I mentioned, I do have a little extra cash and today with the early morning crash I saw a buying opportunity. I bought PDS, which is a trust similar to FDG. They pay about an 8% dividend. I have decided to perhaps go with slightly lower beta stocks for the time being. I will be able to buy another stock tomorrow as I bid adieu to ANF while TBL gets axed (ha-ha). I may buy HGT, another trust similar to PDS.

SHOO announced their earnings this morning. They were not that good. SHOO was my big loser of the day, down 3.5%. Needless to say that did not help my sidecar. My sidecar has expanded with the addition of PTEN yesterday and today I added some FDG when it also opened lower. That gives me OVTI, RAIL, SHOO, PTEN & FDG. Actually OVTI is due to report earnings soon (gulp). I am yet to see an earnings report from them that made me smile. Actually they have all hit me pretty hard in the wallet, as evidenced by OVTI dropping from 27 something when I first bought them to their current 13 mark. Drum roll please…

Gad, it doesn’t sound very good…”reduction in gross margin reflecting increased pricing pressure”, “April Fiscal quarter will be a difficult one”… Cripes. Wait, some good news, they have decided to repurchase up to $100m in stock… as their market cap has dropped to $715m that is a lot. And they see demand for products increasing in July quarter. Remember they are a 715m market cap company with 340m in cash. We’ll see how the market reacts. At least stock compensation isn’t costing as much!

PNCL was my big gainer today, up 3.1%. I knew yesterday was a fluke!

I have to laugh at my new stock, CREL (which has tread water in its first week). They must have a busy PR department for a small company. I count 6 press releases in the 4 days I have owned the stock. So far as I can tell, they aren’t exactly market-moving events.

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