Mechanical Update

I felt it was time for a quick update of one of my mechanical portfolios. As a reminder, I add/subtract stocks to 2 mechanical portfolios every weekend. A stock is added if it is new to the top 30 or top 50 screen in the past 52 weeks. A stock is removed if it has been in my mechanical portfolio for 52 weeks. I have been doing this since the start of 2008 and both portfolios have substantially outperformed the benchmark S&P 500 in total. However, the open stocks are trailing, though catching up of late. Here is a snapshot of the open stocks in the top 30 mechanical portfolio:

Symbol	Date	Original	Current	Dividend	S&P O	S&P D	Stock Chg	S&P Chg	Diff
immu	11/6/09	3.61	3.88	-	107.13	2.20	7.5%	14.0%	-6.5%
cbst	11/6/09	17.60	23.70	-	107.13	2.20	34.7%	14.0%	20.6%
snta	11/6/09	3.20	3.78	-	107.13	2.20	18.1%	14.0%	4.1%
CNU	11/13/09	3.10	4.72	-	109.62	2.20	52.3%	11.4%	40.8%
IDCC	11/20/09	23.56	34.42	-	109.43	2.20	46.1%	11.6%	34.5%
PDLI	11/27/09	6.63	5.41	1.00	109.57	2.20	-3.3%	11.5%	-14.8%
ARO	12/4/09	28.95	35.78	-	111.01	2.20	23.6%	10.0%	13.5%
CBPO	12/4/09	9.06	10.23	-	111.01	2.20	12.9%	10.0%	2.9%
VALV	12/31/09	5.15	6.30	-	111.44	1.61	22.3%	9.1%	13.2%
SMED	2/5/10	6.74	4.08	-	106.66	1.61	-39.5%	14.0%	-53.4%
SPMD	2/5/10	36.63	6.43	-	106.66	1.61	-82.4%	14.0%	-96.4%
XOMA	2/5/10	0.42	0.16	-	106.66	1.61	-62.1%	14.0%	-76.1%
MGIC	2/19/10	1.77	3.31	-	111.14	1.61	87.0%	9.4%	77.6%
UIS	2/26/10	34.91	23.45	-	110.74	1.61	-32.8%	9.8%	-42.6%
SNTS	3/5/10	4.87	3.26	-	114.25	1.61	-33.1%	6.4%	-39.5%
PRSC	3/12/10	14.18	17.45	-	115.46	1.61	23.1%	5.3%	17.8%
WTW	3/19/10	25.20	33.83	0.35	115.97	1.13	35.6%	4.4%	31.2%
QDEL	3/25/10	13.73	11.96	-	116.58	1.13	-12.9%	3.9%	-16.8%
BDSI	4/16/10	4.12	3.59	-	119.36	1.13	-12.9%	1.4%	-14.3%
ABC	4/23/10	31.13	31.68	-	121.81	1.13	1.8%	-0.6%	2.4%
APOL	4/30/10	57.41	38.47	-	118.81	1.13	-33.0%	1.9%	-34.9%
SVA	4/30/10	5.79	3.99	-	118.81	1.13	-31.1%	1.9%	-33.0%
OSK	4/30/10	38.62	29.17	-	118.81	1.13	-24.5%	1.9%	-26.4%
VPHM	5/7/10	12.06	16.83	-	111.26	1.13	39.6%	8.8%	30.7%
CHOP	5/14/10	6.54	6.12	-	113.89	1.13	-6.4%	6.3%	-12.7%
MRX	5/21/10	22.50	29.98	-	107.71	1.13	33.2%	12.4%	20.8%
zlcs	6/4/10	1.53	1.31	-	106.82	1.13	-14.4%	13.4%	-27.7%
TNAV	6/4/10	8.53	6.60	-	106.82	1.13	-22.6%	13.4%	-36.0%
JGBO	6/11/10	8.45	6.60	-	109.68	1.13	-21.9%	10.4%	-32.3%
VALU	6/11/10	17.84	14.85	2.00	109.68	1.13	-5.5%	10.4%	-15.9%
AFAM	7/16/10	25.60	34.86		106.66	0.60	36.2%	13.0%	23.1%
DRWI	7/16/10	5.23	8.67	-	106.66	0.60	65.8%	13.0%	52.7%
DJCO	7/30/10	79.63	73.68	-	112.46	0.60	-7.5%	7.2%	-14.7%
SCEI	7/30/10	5.35	7.25	-	112.46	0.60	35.5%	7.2%	28.3%
SNDK	7/30/10	45.27	38.10	-	112.46	0.60	-15.8%	7.2%	-23.0%
IPXL	8/6/10	17.00	19.94	-	112.39	0.60	17.3%	7.3%	10.0%
SUPG	8/6/10	1.99	2.74	-	112.39	0.60	37.7%	7.3%	30.4%
FLL	9/3/10	3.17	3.58	-	110.89	0.60	12.9%	8.7%	4.2%
HRB	9/17/10	12.98	11.65	-	112.49	-	-10.2%	6.6%	-16.9%
PSDV	10/1/10	4.46	5.80	-	114.61	-	30.0%	4.7%	25.4%
CRME	10/22/10	5.75	4.80	-	118.35	-	-16.5%	1.4%	-17.9%
CSGS	10/22/10	18.91	19.90	-	118.35	-	5.2%	1.4%	3.9%
TER	10/29/10	11.24	11.51	-	118.49	-	2.4%	1.2%	1.2%
						Totals	20.5%	8.4%	12.2%
55.3% of stocks beat the S&P 500 Benchmark						Closed	26.5%	8.4%	18.1%
S&P C			119.95			Open	4.5%	8.2%	-3.8%

One of the more recent stocks on my top 50 mechanical portfolio is NEP, a Chinese Oil & Gas company. They are extraordinarily cheap, under $7 a share. I think with QE2 under way, that oil prices are back on their way up and that hasn't been reflected here. I may buy some shares today. It will not be part of my portfolio as I am fully invested. Two alternatives for those looking for a little less risk would be either TOT or STO, both of which rank relatively high on my ranking spreadsheet and both also pay a nice dividend.