Weekend Update

Weekend Update - August 17th, 2013

First weekend in a while I have had a broadband connection. Still traveling, though head back to new England on Monday.  It has been a terrific stretch for me while I have been traveling.  Since I left at the end of July, I am up about 70 basis points, while the broader market is down about 2 percent.  So on a relative basis, that is a pretty good stretch.

For the year, I am now up 23.4%. I am certainly pleased with that.  I have made some mistakes during the year, but all-in-all it has been very satisfactory. 

MFI has been a driver of the success.  And it is not just me.  My MFI Index has been stellar.

	Annual		Inception to Date
Year	Russell	MFI	Russell ITD	MFI ITD
2006	11.40%	15.03%	11.40%	15.03%
2007	4.09%	-6.69%	15.96%	7.34%
2008	-37.05%	-37.97%	-27.00%	-33.42%
2009	32.51%	45.18%	-3.27%	-3.34%
2010	18.38%	22.77%	14.50%	18.67%
2011	-0.56%	-10.47%	13.87%	6.25%
2012	16.38%	9.70%	32.52%	16.56%
2013	17.93%	31.92%	56.27%	53.76%

The table above is remarkable for the MFI index.  Up almost 32% on the year. Wow! Who would have thunk it? My own MFI picks are up 23% on the year, but recall I was only 50% invested at start of year and added tranches in February and May.  Going forward I will always be 100% invested.

Here are the stocks within the MFI Index:

Index	Stock	Start	Last Week	Current	YTD Change	Weekly Change	Shares
1	APOL	20.92	18.40	19.19	-8.3%	4.3%	11.14
2	AGX	18.00	16.67	15.39	-14.5%	-7.7%	12.95
3	BAH	13.92	18.93	21.09	51.5%	11.4%	16.75
4	CA	21.98	30.26	31.05	41.2%	2.6%	10.61
5	CPLA	28.23	47.93	55.31	95.9%	15.4%	8.26
6	CF	203.16	181.40	188.24	-7.3%	3.8%	1.15
7	CSCO	19.65	25.90	24.61	25.2%	-5.0%	11.86
8	DELL	10.14	13.04	13.98	37.9%	7.2%	22.99
9	DLX	32.24	39.58	42.86	32.9%	8.3%	7.23
10	DMRC	20.70	22.26	20.49	-1.0%	-8.0%	11.26
11	DLB	29.33	33.68	32.51	10.8%	-3.5%	7.95
12	GME	25.09	43.02	48.18	92.0%	12.0%	9.29
13	GNI	67.20	77.86	72.72	8.2%	-6.6%	3.47
14	GTAT	3.03	5.06	6.27	106.9%	23.9%	76.93
15	HLF	32.94	59.71	65.54	99.0%	9.8%	7.08
16	HFC	46.55	45.08	46.00	-1.2%	2.0%	5.01
17	IDCC	41.09	39.12	35.83	-12.8%	-8.4%	5.67
18	INTX	9.48	9.68	10.17	7.3%	5.1%	24.59
19	ESI	17.31	27.82	26.86	55.2%	-3.5%	13.47
20	JCOM	30.60	46.32	51.72	69.0%	11.7%	7.62
21	KLIC	11.99	11.57	11.39	-5.0%	-1.6%	19.44
22	LPS	24.62	32.79	32.45	31.8%	-1.0%	9.47
23	MANT	25.94	28.91	28.46	9.7%	-1.6%	8.99
24	MSFT	26.71	32.28	32.26	20.8%	-0.1%	8.73
25	NATR	14.48	19.01	17.85	23.3%	-6.1%	16.10
26	NSU	4.28	3.49	3.47	-18.9%	-0.6%	54.47
27	NTI	25.44	27.69	25.11	-1.3%	-9.3%	9.16
28	NUS	37.05	82.07	87.73	136.8%	6.9%	6.29
29	PDLI	7.04	8.41	8.29	17.7%	-1.5%	33.11
30	PETS	11.10	17.33	15.66	41.1%	-9.6%	21.00
31	PBI	10.64	15.08	18.05	69.7%	19.7%	21.91
32	POOSF	1.42	-	-	-100.0%	#DIV/0!	164.63
33	POZN	5.01	5.60	5.25	4.8%	-6.2%	46.53
34	QCOR	26.72	47.46	66.07	147.3%	39.2%	8.72
35	RTN	57.56	70.81	77.84	35.2%	9.9%	4.05
36	RPXC	9.04	18.91	15.70	73.7%	-17.0%	25.79
37	SAI	11.32	15.87	16.59	46.6%	4.5%	20.59
38	STX	30.42	45.69	39.58	30.1%	-13.4%	7.66
39	SVLC	2.52	1.84	1.89	-25.0%	2.7%	92.51
40	SAVE	17.73	34.93	31.23	76.1%	-10.6%	13.15
41	STRA	56.17	50.55	42.52	-24.3%	-15.9%	4.15
42	TNAV	7.99	5.95	5.40	-32.4%	-9.2%	29.18
43	TZOO	18.99	29.68	29.38	54.7%	-1.0%	12.28
44	UIS	17.30	24.97	24.25	40.2%	-2.9%	13.47
45	USMO	11.68	15.70	14.47	23.9%	-7.8%	19.96
46	USNA	32.93	80.55	77.15	134.3%	-4.2%	7.08
47	EGY	8.65	6.21	6.04	-30.2%	-2.7%	26.95
48	VCI	25.78	28.75	28.35	10.0%	-1.4%	9.04
49	VG	2.37	3.31	3.27	38.0%	-1.2%	98.36
50	WCRX	12.04	20.30	21.64	79.7%	6.6%	19.36
	Total	11,656	15,154	15,377	31.9%	1.5%

'Last week" in this case really means since I started traveling in late July.  Certainly some eye-popping stock returns in this table.

Dividend Portfolio

Savvy readers will recall that in my last weekend update, my dividend portfolio was over performing overall, but the open positions were trailing.  That has changed.  My open positions are now winning as well, largely helped by TC-PT (though hurt by poor CSCO earnings).

Stock	Shares	Avg Cost	Current Price	Dividends Received	Pct Change	R3K Change	Diff
AAPL	213	495.23	502.33	1,692.31	3.0%	15.0%	-12.0%
AOD	18,816	3.95	4.02	2,125.45	4.6%	8.2%	-3.7%
BBEP	3,584	15.44	17.76	1,675.20	18.0%	1.6%	16.4%
CSCO	4,356	17.30	24.27	3,479.34	44.9%	24.8%	20.1%
CSQ	5,746	8.37	10.05	8,342.51	37.4%	40.5%	-3.1%
INTC	3,389	22.21	21.92	3,654.19	3.5%	21.1%	-17.6%
NSU	10,000	3.03	3.40	-	12.3%	-0.8%	13.1%
O	569	19.92	40.10	8,178.12	173.3%	91.9%	81.4%
OIBAX	4,036	4.97	6.07	7,460.18	59.3%	93.6%	-34.4%
RIG	1,413	51.46	47.00	700.00	-7.7%	6.0%	-13.7%
SAI	3,000	14.84	15.35	-	3.4%	-1.5%	4.9%
SBS	4,000	9.85	9.25	-	-6.1%	-3.1%	-3.0%
SLCA	3,018	20.29	22.85	375.00	13.2%	1.3%	11.9%
STO	2,211	22.97	21.70	3,024.82	0.4%	22.6%	-22.1%
TC-PT	5,500	15.43	19.33	4,468.20	30.5%	6.5%	24.1%
TCRD	4,200	14.73	15.10	-	2.5%	1.9%	0.6%
TGONF	2,500	10.38	10.30	-	-0.8%	4.5%	-5.3%
Total Open				45,175	14.5%	13.7%	0.7%
Closed					13.9%	10.0%	3.9%
Combined					14.0%	10.9%	3.2%
Annualized IRR Since 12/31/10					17.1%
2013 Gain					14.1%

Actually, the recent surge in AAPL has also helped a lot.

Here are my holdings (with multiplier) and expected dividends:

Stock	Shares	Ann Dividend / Share	Yield	Projected Dividend	Sector	Worth
AAPL	213	$      12.20	2.4%	2,602	Consumer	107,116
AOD	18,816	$        0.32	8.1%	6,096	Hybrid	75,641
BBEP	3,584	$        1.90	10.7%	6,809	Resources	63,645
CSCO	4,356	$        0.68	2.8%	2,962	Tech	105,729
CSQ	5,746	$        0.84	8.4%	4,826	Hybrid	57,744
INTC	3,389	$        0.90	4.1%	3,050	Tech	74,276
NSU	10,000	$        0.14	4.1%	1,400	Resources	34,000
O	569	$        2.17	5.4%	1,236	Services	22,833
OIBAX	4,036	$        0.29	4.8%	1,170	Bond	24,498
RIG	1,413	$        2.24	4.8%	3,165	Services	66,411
SAI	3,000	$        0.48	3.1%	1,440	Services	46,050
SBS	4,000	$        0.38	4.1%	1,520	Utility	37,000
SLCA	3,018	$        0.50	2.2%	1,509	Services	68,964
STO	2,211	$        1.16	5.4%	2,567	Resources	47,969
TC-PT	5,500	$        1.60	8.3%	8,800	Resources	106,315
TCRD	4,200	$        1.36	9.0%	5,712	Hybrid	63,420
TGONF	2,500	$        0.54	5.2%	1,350	Finance	25,755
Total			5.5%	56,215

Discretionary Portfolio

While GNW has kind of pulled back a bit in this portfolio, GTAT has been en fuego.  I am glad I resisted urge to make a quick 30% on GTAT.  It is now up about 85% since I rebought them in April.  Recall I had originally bought the 14,000 shares in March at 2.73.  I sold in April at $3.41 and then rebought later in April at $3.39.  So if you ignore that short interim period, I am up a staggering 130% on that March purchase.  That is carrying a lot of water for me this year as it was a pretty significant investment for me.  They were about my 15th largest position when I bought them, they have now lapped a few of my other securities and have moved up to #5.  CSCO is looking in their rearview mirror.

Stock	Gain	Cost	Price
GNW	77.2%	7.10	12.59
GTAT	85.0%	3.39	6.27
KLIC	2.2%	11.15	11.39
ACAS	0.8%	12.75	12.85
BAC-WTA	24.2%	5.10	6.33
HIG-WT	6.5%	20.70	22.06
Grand Total	43.1%