Recession to the Mean

Wow, I looked at the MagicDiligence site today and guess what? He is less than 1% ahead of the S&P 500. I think at one time, SDA was 10% ahead. Still many years to go until we can really judge whether it is possible to beat the indices, but so far it has been a struggle all-around. It is funny (in an ironic way, not a "ha-ha" way), but my mechanical approach is also leading the S&P by the exact same margin. You will note of my three new stocks last week, PRGX had a big week. Next week it looks like we'll have at least two new entries: HLF and GHM. HLF has been cut in half (ha,ha) recently and is about $20. That seems like a pretty good deal as they now have a 4% dividend and even with lower guidance, they expect to earn $3.5 next year. GHM has had a real roller coaster ride in 2008. They were $16-$17 a share back in January and then spiked as high as $50 in the summer (I just noticed that they split as well). Now they are back to $13.60.

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
DTPI	2/2/08	4.75	3.58	-	139.58	2.00	-24.6%	-31.3%	6.7%
AIRV	2/13/08	5.08	4.92	-	136.37	2.00	-3.1%	-29.7%	26.6%
CITP	2/16/08	9.98	5.09	-	135.14	2.00	-49.0%	-29.1%	-19.9%
PRXI	2/16/08	4.29	1.10	-	135.14	2.00	-74.4%	-29.1%	-45.3%
CAST	2/23/08	5.06	2.25	-	135.62	2.00	-55.5%	-29.3%	-26.2%
GSB	3/12/08	2.08	1.15	-	131.36	2.00	-44.7%	-27.0%	-17.7%
IGC	3/12/08	3.70	2.77	-	131.36	2.00	-25.1%	-27.0%	1.9%
LGTY	3/12/08	6.70	5.05	-	131.36	2.00	-24.6%	-27.0%	2.4%
MRX	3/12/08	19.45	13.21	0.08	131.36	1.36	-31.7%	-27.5%	-4.2%
DEPO	3/22/08	2.74	1.90	-	132.08	1.36	-30.7%	-27.9%	-2.7%
NVTL	3/22/08	8.98	5.32	-	132.08	1.36	-40.8%	-27.9%	-12.8%
VRGY	3/22/08	17.42	12.83	-	132.08	1.36	-26.3%	-27.9%	1.6%
DLX	4/6/08	19.58	11.54	0.50	136.89	1.36	-38.5%	-30.4%	-8.1%
NTRI	4/6/08	14.94	14.78	0.36	136.89	1.36	1.3%	-30.4%	31.8%
IUSA	4/6/08	5.28	3.82	-	136.89	1.36	-27.7%	-30.4%	2.8%
LRCX	4/11/08	41.08	21.04	-	133.38	1.36	-48.8%	-28.6%	-20.2%
SLXP	4/11/08	6.47	10.17	-	133.38	1.36	57.2%	-28.6%	85.8%
CHRD	4/19/08	5.03	3.47	-	138.48	1.36	-31.0%	-31.2%	0.2%
QXM	4/26/08	6.26	2.52	-	139.60	1.36	-59.7%	-31.8%	-28.0%
MDP	5/9/08	33.79	18.43	0.43	138.90	1.36	-44.2%	-31.4%	-12.7%
OMPI	5/9/08	7.11	5.58	-	138.90	1.36	-21.5%	-31.4%	9.9%
PPD	5/9/08	43.45	38.15	-	138.90	1.36	-12.2%	-31.4%	19.3%
ELNK	5/25/08	9.21	6.70	-	137.64	1.36	-27.3%	-30.8%	3.6%
FTAR.ob	5/25/08	4.37	3.12	-	137.64	1.36	-28.6%	-30.8%	2.2%
CHKE	5/31/08	27.25	19.11	0.50	140.35	1.36	-28.0%	-32.2%	4.1%
APKT	7/5/08	4.62	4.17	-	126.31	0.69	-9.7%	-25.1%	15.4%
CSKI	7/5/08	11.06	9.76	-	126.31	0.69	-11.8%	-25.1%	13.4%
VALU	7/5/08	32.00	33.50	0.80	126.31	0.69	7.2%	-25.1%	32.3%
QCOR	7/26/08	4.84	8.46	-	125.48	0.69	74.8%	-24.6%	99.4%
MSTR	8/1/08	60.56	37.54	-	126.16	0.69	-38.0%	-25.1%	-13.0%
NVDA	8/8/08	11.00	8.72	-	129.37	0.69	-20.7%	-26.9%	6.2%
SWIR	8/8/08	12.41	8.30	-	129.37	0.69	-33.1%	-26.9%	-6.2%
CF	8/8/08	134.65	60.84	-	129.37	0.69	-54.8%	-26.9%	-27.9%
SIGM	8/8/08	15.93	9.86	-	129.37	0.69	-38.1%	-26.9%	-11.2%
EGMI.OB	9/5/08	0.69	0.33	-	124.42	0.69	-52.2%	-24.0%	-28.2%
KHD	9/15/08	20.68	14.71	-	126.09	0.69	-28.9%	-25.0%	-3.9%
TTWO	9/22/08	16.57	11.74	-	124.12	0.69	-29.1%	-23.8%	-5.3%
SCMP	9/29/08	8.29	7.36	-	120.85	-	-11.2%	-22.3%	11.1%
DTLK	9/29/08	4.34	2.89	-	120.85	-	-33.4%	-22.3%	-11.1%
TRA	9/29/08	28.42	19.93	-	120.85	-	-29.9%	-22.3%	-7.5%
MSB	10/10/08	11.37	10.95	1.25	88.50	-	7.3%	6.1%	1.2%
UEPS	10/10/08	14.58	12.25	-	88.50	-	-16.0%	6.1%	-22.0%
TSCM	10/17/08	3.67	3.62	-	93.21	-	-1.4%	0.7%	-2.1%
EME	10/31/08	17.77	16.27	-	96.83	-	-8.4%	-3.1%	-5.4%
CTCM	10/31/08	7.40	6.02	-	96.83	-	-18.6%	-3.1%	-15.6%
PRGX	10/31/08	4.24	4.92	-	96.83	-	16.0%	-3.1%	19.1%
						Totals	-23.3%	-24.1%	0.9%
53.7% of stocks beat the S&P 500 Benchmark
S&P C			93.86