Portfolio Update May 30th 2010

Quick update on my holdings and graphs. Here is the graph, sadly I am back below the break-even line.



Then here are my current holdings, I will sell WILC on Tuesday.

Purchase Date	Symbol	Initial Price	Current Price	Avg of Gain	Avg of IWV Gain
5/29/2009	UTA	$7.90	$8.36	5.8%	21.7%
	WILC	$2.12	$5.88	177.4%	21.7%
6/9/2009	CHCG	$1.12	$0.37	-66.9%	18.7%
	FRX	$23.10	$25.88	12.0%	18.7%
	PFE	$14.13	$15.23	12.6%	18.7%
6/12/2009	ENDP	$16.72	$20.94	25.2%	18.1%
7/21/2009	TTT	$8.92	$11.48	28.8%	17.0%
7/27/2009	GIGM	$5.02	$2.52	-49.8%	13.5%
	RTN	$45.61	$52.41	17.1%	13.5%
7/30/2009	BIOC	$3.70	$4.54	22.7%	13.1%
	BR	$16.53	$19.12	18.2%	13.1%
	CBI	$13.62	$19.87	45.9%	13.1%
8/14/2009	BKE	$26.66	$35.55	42.3%	10.7%
8/18/2009	PVSW	$4.96	$4.82	-2.8%	12.4%
8/26/2009	CEU	$5.40	$4.30	-20.4%	8.1%
8/27/2009	GTLS	$19.50	$18.42	-5.5%	8.0%
9/8/2009	AMED	$35.86	$49.72	38.7%	8.3%
9/21/2009	WTW	$26.00	$27.42	7.5%	3.8%
9/22/2009	QCOR	$5.42	$9.47	74.7%	3.1%
9/28/2009	TTT	$10.28	$11.48	11.7%	4.2%
9/30/2009	JCOM	$23.00	$23.14	0.6%	4.7%
	PRIM	$7.30	$6.85	-5.5%	4.7%
10/2/2009	KSW	$3.60	$3.29	-5.8%	8.0%
10/14/2009	LIWA	$7.39	$9.02	22.1%	1.2%
10/22/2009	AGX	$12.31	$10.77	-12.5%	1.4%
10/30/2009	CMFO	$4.30	$5.93	37.9%	7.5%
	RGR	$10.59	$15.74	51.0%	7.5%
11/3/2009	ESI	$93.61	$100.94	7.8%	6.4%
11/17/2009	IDCC	$23.62	$26.10	10.5%	0.1%
11/20/2009	QKLS	$5.75	$5.21	-9.4%	1.9%
12/2/2009	TSRA	$23.92	$17.38	-27.3%	0.2%
12/4/2009	CBPO	$9.15	$12.89	40.9%	0.4%
12/18/2009	CF	$89.45	$68.59	-23.3%	0.4%
12/21/2009	CYTK	$2.59	$2.94	13.5%	0.4%
1/5/2010	VALV	$5.31	$8.78	65.3%	-1.7%
1/14/2010	TRMS	$2.46	$2.26	-8.1%	-3.6%
1/20/2010	RAI	$53.55	$52.14	-1.0%	-3.6%
1/29/2010	GXDX	$31.69	$26.66	-15.9%	1.4%
2/5/2010	UIS	$34.07	$23.20	-31.9%	4.8%
2/23/2010	CSKI	$15.45	$12.66	-18.0%	0.6%
2/27/2010	TNDM	$15.31	$13.44	-12.2%	1.3%
3/1/2010	UIS	$35.22	$23.20	-34.1%	-0.8%
3/8/2010	DNB	$69.93	$72.99	4.4%	-3.7%
3/12/2010	KSW	$3.90	$3.29	-13.1%	-4.8%
	PRSC	$14.35	$16.39	14.2%	-4.8%
3/18/2010	KSW	$3.65	$3.29	-7.1%	-4.9%
4/12/2010	NEWN	$8.20	$7.13	-13.0%	-8.0%
4/21/2010	CCME	$12.57	$13.25	5.4%	-9.3%
4/30/2010	OSK	$39.33	$35.53	-9.7%	-9.0%
5/10/2010	SOHU	$45.94	$44.20	-3.8%	-4.8%
5/20/2010	CHKE	$19.11	$20.49	9.2%	0.8%
	IPXL	$19.23	$21.08	9.6%	2.0%
5/24/2010	MRX	$22.64	$23.19	2.4%	1.4%
	UEPS	$13.70	$14.32	4.5%	2.0%
Grand Total		$19.90	$20.26	8.2%	4.8%
Actual Totals (adj as all purchase not equal $)				5.8%	3.5%
Mechanical				7.4%	5.6%

Note the "mechanical" is a subset of my larger portfolio. Have a good holiday weekend everyone.

Uodate of Mechanical Stocks - May 29th

Here is how my mechanical stock portfolio has performed. This is not a real $ portfolio, but a test to see how well it works, that is buying stocks that are new to screens in past 52 weeks.

Symbol		Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
AAV	5/15/09	3.41	6.48	-	88.71	2.10	90.0%	30.7%	59.3%
AMED	5/29/09	30.43	49.72	-	92.53	2.10	63.4%	20.5%	42.9%
UTA	5/29/09	7.90	8.36	-	92.53	2.10	5.8%	20.5%	-14.6%
PFE	6/5/09	14.51	15.23	0.50	94.55	2.10	8.4%	17.9%	-9.5%
VM	6/5/09	4.55	5.50	-	94.55	2.10	20.9%	17.9%	3.0%
ONTY	6/11/09	2.60	3.49	-	95.08	2.10	34.2%	17.2%	17.0%
BPI	6/19/09	16.74	21.57	-	92.04	1.58	28.9%	20.5%	8.3%
GME	6/19/09	22.95	22.79	-	92.04	1.58	-0.7%	20.5%	-21.2%
SHAW	7/10/09	23.69	34.11	-	87.96	1.58	44.0%	26.1%	17.9%
RTN	7/24/09	45.39	52.41	1.00	98.06	1.58	17.7%	13.1%	4.5%
CBZ	7/31/09	6.54	6.60	-	98.81	1.58	0.9%	12.3%	-11.4%
CBI	7/31/09	13.95	19.87	-	98.81	1.58	42.4%	12.3%	30.2%
DRC	7/31/09	29.11	31.83	-	98.81	1.58	9.3%	12.3%	-2.9%
JEC	7/31/09	40.98	41.76	-	98.81	1.58	1.9%	12.3%	-10.4%
NPSP	7/31/09	3.89	6.59	-	98.81	1.58	69.4%	12.3%	57.1%
ASGN	7/31/09	4.23	5.53	-	98.81	1.58	30.7%	12.3%	18.5%
AGX	8/7/09	12.35	10.77	-	98.81	1.58	-12.8%	12.3%	-25.1%
BBND	8/7/09	4.00	2.85	-	98.81	1.58	-28.8%	12.3%	-41.0%
LHCG	8/7/09	24.55	30.80	-	98.81	1.58	25.5%	12.3%	13.2%
RGR	8/7/09	11.45	15.74	0.28	98.81	1.58	39.9%	12.3%	27.6%
PRIM	8/7/09	6.95	6.85	0.08	100.79	1.58	-0.4%	10.1%	-10.4%
SEPR	8/7/09	18.12	23.00	-	100.79	1.58	26.9%	10.1%	16.9%
CEU	8/21/09	5.10	4.30	-	102.96	1.58	-15.7%	7.8%	-23.4%
CYTK	8/21/09	3.04	2.94	-	102.96	1.58	-3.3%	7.8%	-11.0%
CMFO	8/28/09	4.55	5.93	-	102.96	1.58	30.3%	7.8%	22.6%
NAVR	9/4/09	1.79	1.96	-	102.60	1.58	9.5%	8.1%	1.4%
WTW	9/11/09	26.00	27.42	0.53	104.77	1.58	7.5%	5.9%	1.6%
MIPS	9/18/09	3.72	4.95	-	106.72	1.58	33.1%	4.0%	29.1%
ESI	10/30/09	90.35	100.94	-	103.56	1.07	11.7%	6.6%	5.1%
VRSK	10/30/09	27.43	30.25	-	103.56	1.07	10.3%	6.6%	3.6%
APOL	11/6/09	55.99	53.16	-	107.13	1.07	-5.1%	3.1%	-8.1%
CBST	11/6/09	17.60	21.50	-	107.13	1.07	22.2%	3.1%	19.1%
SNTA	11/6/09	3.20	3.13	-	107.13	1.07	-2.2%	3.1%	-5.3%
IMMU	11/6/09	3.61	3.48	-	107.13	1.07	-3.6%	3.1%	-6.7%
PBH	11/13/09	6.95	7.72	-	109.62	1.07	11.1%	0.7%	10.3%
IDCC	11/20/09	23.56	26.10	-	109.43	1.07	10.8%	0.9%	9.9%
PDLI	11/27/09	6.63	5.37	0.50	109.57	1.07	-11.5%	0.8%	-12.3%
CBPO	12/4/09	9.06	12.89	-	111.01	1.07	42.3%	-0.5%	42.8%
XOMA	12/4/09	0.72	0.44	-	111.01	1.07	-38.7%	-0.5%	-38.2%
Valv	12/31/09	5.15	8.78	-	111.44	0.48	70.5%	-1.4%	71.9%
RAI	1/15/10	53.81	52.14	0.90	113.64	0.48	-1.4%	-3.3%	1.9%
TRMS	1/15/10	2.45	2.26	-	113.64	0.48	-7.8%	-3.3%	-4.4%
SAI	1/15/10	18.90	17.19	-	113.64	0.48	-9.0%	-3.3%	-5.7%
NATH	1/28/10	14.70	14.70	-	108.57	0.48	0.0%	1.2%	-1.2%
SMED	2/5/10	6.74	5.60	-	106.66	0.48	-16.9%	3.0%	-19.9%
SPMD	2/5/10	36.63	30.13	-	106.66	0.48	-17.7%	3.0%	-20.7%
UIS	2/5/10	34.25	23.20	-	106.66	0.48	-32.3%	3.0%	-35.3%
QKLS	2/12/10	5.69	5.21	-	108.04	0.48	-8.4%	1.7%	-10.1%
MGIC	2/12/10	1.78	2.24	-	108.04	0.48	25.8%	1.7%	24.2%
ESIC	2/19/10	2.07	2.54	-	111.14	0.48	22.7%	-1.2%	23.9%
ODSY	2/19/10	17.89	26.56	-	111.14	0.48	48.5%	-1.2%	49.6%
HRB	2/26/10	17.28	16.08	0.15	110.74	0.48	-6.1%	-0.8%	-5.3%
TNDM	2/26/10	16.12	13.44	-	110.74	0.48	-16.6%	-0.8%	-15.8%
DEXO	2/26/10	29.80	20.48	-	110.74	0.48	-31.3%	-0.8%	-30.5%
AFAM	3/5/10	35.52	36.37	-	114.25	0.48	2.4%	-3.9%	6.2%
DNB	3/5/10	69.95	72.99	-	114.25	0.48	4.3%	-3.9%	8.2%
SNTS	3/5/10	4.87	2.89	-	114.25	0.48	-40.7%	-3.9%	-36.8%
KIRK	3/12/10	20.11	21.52	-	115.46	0.48	7.0%	-4.9%	11.9%
PRSC	3/12/10	14.18	16.39	-	115.46	0.48	15.6%	-4.9%	20.4%
QDEL	3/25/10	13.73	11.70	-	116.58	-	-14.8%	-6.2%	-8.6%
SVA	4/9/10	5.83	4.04	-	119.55	-	-30.7%	-8.5%	-22.2%
VALU	4/9/10	22.07	19.80	3.00	119.55	-	3.3%	-8.5%	11.8%
BDSI	4/16/10	4.12	2.91	-	119.36	-	-29.4%	-8.4%	-21.0%
LOV	4/23/10	3.45	3.47	-	121.81	-	0.6%	-10.2%	10.8%
MD	4/23/10	57.02	56.55	-	121.81	-	-0.8%	-10.2%	9.4%
ABC	4/23/10	31.13	31.28	-	121.81	-	0.5%	-10.2%	10.7%
SNDK	4/30/10	39.84	46.62	-	121.81	-	17.0%	-10.2%	27.2%
OSK	4/30/10	38.62	35.53	-	121.81	-	-8.0%	-10.2%	2.2%
GXDX	5/7/10	27.89	26.66	-	111.26	-	-4.4%	-1.7%	-2.7%
IPXL	5/7/10	16.66	21.08	-	111.26	-	26.5%	-1.7%	28.2%
SOHU	5/7/10	44.19	44.20	-	111.26	-	0.0%	-1.7%	1.7%
CHOP	5/14/10	6.54	6.06	-	113.89	-	-7.3%	-4.0%	-3.4%
LIWA	5/14/10	8.24	9.02	-	113.89	-	9.5%	-4.0%	13.4%
FLL	5/14/10	3.10	3.09	-	113.89	-	-0.3%	-4.0%	3.6%
MRX	5/21/10	22.50	23.19	-	107.71	-	3.1%	1.5%	1.5%
						Top 50 Portfolio
						Totals	18.4%	0.7%	17.7%
54.6% of stocks beat the S&P 500 Benchmark						Closed	22.6%	-0.6%	23.2%
S&P C			109.37			Open	8.0%	3.9%	4.1%

Two New Stocks In and Other Thoughts

A few changes in my portfolio.

• UEPS hit its one year anniversary. I renewed it on Monday for another year.
• WILC will hit its one year anniversary tomorrow. I will sell it Monday as I have large capital gains.
• UTA comes up next week, I intend to renew it.
• At the end of next week, three pharmas: FRX, PFE and ENDP are hitting their one year. I will sell PFE and likely FRX. Still undecided about ENDP.
• Then I added two stocks, perhaps slightly early but I wanted to take advantage of the big drop last week: CHKE and IPXL.

Here are how the stocks coming up for sale have fared:

		Data
Purchase Date	Symbol	Initial Price	Current Price	Avg of Gain	Avg of IWV Gain
5/21/2009	UEPS	$12.50	$14.24	13.9%	27.7%
5/29/2009	UTA	$7.90	$8.62	9.1%	23.0%
	WILC	$2.12	$5.88	177.4%	23.0%
6/9/2009	CHCG	$1.12	$0.39	-65.2%	20.0%
	FRX	$23.10	$26.07	12.9%	20.0%
	PFE	$14.13	$15.37	13.6%	20.0%
6/12/2009	ENDP	$16.72	$20.85	24.7%	19.4%

So you can see WILC and ENDP out-performed the Russell 3000, while the others underperformed. CHCG is worth so little, I forgot about them.

Stocks Getting Cheaper?

Every month or so, I crank up my "MFI Cruncher" spreadsheet and calculate the earnings yield and return on capital on the top 30 stocks. Actually, this time I am also going to start doing the top 50. I wish I had used the top 50 all the way as I feel it is a more robust sample. But back when I started, I didn't have the cruncher, and it is time-consuming by hand. I have used the median Earnings yield as the best metric to compare portfolios period to period. As I move to top 50, I think the average will also be a good yardstick. Return on capital, doesn't really measure "cheapness", as you recall from the book its purpose is to find good companies.

Here are the top stocks, in descending order:

Stock	EY	ROC	EY Rank	ROC Rank	Sum
SNTA	127%	2699%	1	2	3
IDCC	32%	1778%	4	3	7
BDSI	72%	1123%	2	6	8
SNTS	28%	1218%	6	5	11
ELNK	45%	524%	3	12	15
PDLI	20%	213023%	16	1	17
UEPS	23%	1263%	13	4	17
SOLR	26%	744%	9	9	18
SMED	28%	235%	7	18	25
IMMU	17%	793%	19	8	27
CEU	27%	196%	8	21	29
OSK	25%	254%	12	17	29
MRX	17%	741%	21	10	31
CHOP	26%	178%	10	22	32
CSKI	32%	129%	5	28	33
PPD	20%	197%	15	20	35
UIS	26%	170%	11	24	35
CHKE	12%	854%	29	7	36
LO	15%	684%	26	11	37
AMED	16%	257%	22	16	38
PRSC	16%	323%	25	14	39
ENDP	16%	282%	24	15	39
EME	21%	149%	14	26	40
UNTD	16%	227%	23	19	42
CNU	18%	153%	17	25	42
USMO	10%	513%	30	13	43
VPHM	17%	173%	20	23	43
CBPO	17%	128%	18	29	47
SOHU	14%	139%	27	27	54
CBI	14%	89%	28	30	58

		EY	ROC
26-May	Median	19.9%	269%
30-Apr	Median	16.8%	551%
3/19/10	Median	15.6%	321%
2/19/10	Median	18.8%	329%
11/06/09	Median	16.1%	229%
07/31/09	Median	19.7%	212%
04/16/09	Median	27.1%	228%

So you can see that on a median basis, the stocks are the cheapest since last June. Then here are the stats on the top 50, I will start tracking these regularly as well.

Rank	```	EY	ROC	Total	Mkt Cap
1	SNTA	127%	2699%	4	119
2	IDCC	32%	1778%	8	1,113
3	BDSI	72%	1123%	9	61
4	SNTS	28%	3766%	9	172
5	ELNK	45%	524%	15	923
6	SOLR	26%	744%	19	772
7	PDLI	20%	213023%	22	982
8	UEPS	23%	1263%	22	621
9	SMED	28%	235%	28	82
10	OSK	25%	254%	32	3,019
11	CEU	27%	196%	35	123
12	IMMU	17%	1234%	35	240
13	USMO	31%	170%	38	310
14	CHOP	26%	178%	40	281
15	MRX	17%	741%	41	1,438
16	CSKI	32%	129%	44	213
17	PPD	20%	197%	44	460
18	UIS	26%	170%	45	941
19	LO	15%	684%	48	11,296
20	AMED	16%	257%	50	1,358
21	ENDP	16%	282%	51	2,404
22	PRSC	16%	323%	51	241
23	UNTD	16%	227%	54	563
24	CHKE	12%	854%	54	183
25	EME	21%	149%	55	1,658
26	PVSW	14%	433%	56	81
27	APOL	15%	215%	58	8,286
28	VALU	13%	453%	59	195
29	CNU	18%	153%	59	228
30	MHP	10%	513%	60	8,852
31	VPHM	17%	173%	60	1,055
32	TNDM	24%	102%	61	451
33	AFAM	15%	205%	61	338
34	UTA	24%	92%	62	142
35	ARO	18%	153%	62	2,577
36	IPXL	25%	80%	63	1,296
37	GME	19%	107%	65	3,389
38	FWLT	18%	116%	66	2,984
39	RGR	20%	94%	66	305
40	NSR	14%	196%	67	1,595
41	DLX	14%	205%	67	1,057
42	AHCI	19%	103%	67	119
43	CBPO	17%	128%	68	305
44	FLL	18%	71%	76	56
45	SOHU	14%	139%	77	1,673
46	TTT	-65%	193%	78	290
47	CBST	13%	150%	80	1,391
48	SHE	9%	127%	89	260
49	CBI	14%	89%	90	1,859
	Grand Total	21%	235492%	2,470	68,357
5/26/2010	Median	18.1%	197.1%		563
5/26/2010	Average	21.4%	4806.0%		1,395