Saturday, March 19, 2011


Cardiopulmonary Resuscitation

My portfolio, while not on life support, has taken a few hits of late. The biggest hit (obviously) was the demise of CCME. While that has not hit my portfolio directly (CCME has not traded since March 11th), it certainly hit me indirectly, as my other Chinese Hybrid stocks (NEWN, JBGO, NEP and SCEI) all took dives in sympathy/fear.

I think that it would be wrong to sell at this time as while there is obviously risk with the hybrids, as I have stated before there is upside as well.

When CCME re-opens, I will be curious to see (in an analytical fashion) how low it will go. I do still think it is an ongoing business, and just because an auditor resigns, does not mean $0. The Muddy Waters report (which clearly now has more credibility) said CCME was worth $7. If I get that, I will be thrilled.


I decided on Friday, that with the demise of CCME, to remove it from my portfolio as I can't stand to see it sitting there. I will be "fair" and adjust my portfolio value for when it finally starts trading again.

With the focus against Nuclear Power, I decided to buy SOLR. I owned them about two years ago, with success. While SOLR has had a very strong run (about 20% in past 4 months), it still seems very reasonably priced.

  • 18% earnings yield, helped by $2.56 per share in cash.
  • Guidance of about 20% growth in 2011 given
  • Solar power likely to be viewed more favorably as alternative energy.
We'll see.

MFI Mechanical Update

My two MFI mechanical portfolios, which both are comprised of new stocks in past 52 weeks to the MFI top 50 and top 30 lists, did not have a single new additional this week. The top 30 portfolio did have one stock hit it's anniversary and will drop of my mechanical portfolio. It was a great one: WTW. Weight Watchers went up in the past year 147%! While both my mechanical portfolios have fared well overall (since I began them at start of 2008), they are actually trailing broader benchmarks with the open stocks, a trend I am seeing across many MFI metrics.

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