February 1st 2014 Tranche - Early Thoughts

Hard to believe, but I just have a bit more than a month and my February 1st 2013 tranche will hit it's anniversary.  This is my (so far) best tranche ever. It still has an outside shot at being a double for the composite five stocks:

2/1/13 Stocks	Start	Current	Dividend	Pct Gain	R3K Gain
AAPL	$450.60	$567.67	$8.75	27.9%	24.2%
GA	$6.10	$11.25	$0.65	95.1%	24.2%
STRZA	$16.06	$28.89	$0.00	79.9%	24.2%
CA	$25.07	$33.41	$1.00	37.3%	24.2%
NUS	$41.94	$137.51	$1.20	230.7%	24.2%
Totals				94.2%	24.2%

Category/Tranche	August	November	February	May	Total
Initial Investment	25,000	25,000	25,000	25,000	100,000
Current Tranche	28.6%	6.2%	94.2%	30.1%	39.4%
Previous Tranche	14.1%	43.7%	0.0%	0.0%	11.8%
MFI Overall Gain	46.6%	52.7%	94.2%	30.1%	55.9%
Current Balance	36,661	38,171	48,546	32,514	155,892
R3K Current Tranche	11.6%	36.7%	24.2%	15.9%	22.1%
R3K Overall Gain	36.3%	36.7%	24.2%	15.9%	28.3%
R3K Balance	34,078	34,170	31,042	28,976	128,266
Annualized IRR	32.4%	46.4%	109.6%	50.9%	59.8%

As you can see from the second table, the success of the February tranche means this is my largest reinvestment in dollars (it is about 20% larger than the next largest tranche).

Current Top 50

Here are the current top 50:

Ticker	Mkt Cap
ATVI	12,523.77
MO	76,290.95
APOL	3,033.04
AAPL	512,632.40
AGX	379.06
BAH	2,674.47
BKE	2,472.03
CA	14,770.62
CACI	1,688.02
CHE	1,364.91
CRUS	1,322.03
CSCO	116,003.50
COH	15,734.54
CRTX	252.17
DLX	2,609.42
DHX	411.71
EBIX	550.08
EGL	553.48
GME	5,870.42
GTIV	393.93
GNI	109.80
IQNT	386.29
ESI	805.80
LPS	3,160.37
LQDT	709.09
LO	18,523.80
MANT	1,084.96
MSFT	305,630.50
MYGN	2,052.80
NATR	280.07
NOC	25,181.51
PDLI	1,432.89
PFMT	500.85
PETS	333.74
PRSC	351.13
QCOR	3,274.79
RTN	28,461.76
RAI	26,434.63
RPXC	920.62
SAIC	1,548.89
SWHC	746.67
STRA	382.32
RGR	1,425.10
UIS	1,496.52
UNTD	187.96
USMO	313.30
USNA	1,080.53
VCI	1,329.71
VGR	1,547.65
WTW	1,829.49

Here are other stocks I would consider as quasi MFI stocks: GAME, BPI, AVG, CYOU, CTCM, TARO, KLIC and AZN.

Kind of eyeballing the lists, I kind of see various groupings: (1) stocks I already own, (2) vice stocks, (3) for profit education and (4) stocks I have kind of dismissed already.

I do not think there is any shame in picking stocks I already own. So that would include: RPXC, CA, CSCO, AAPL, ATVI, AGX, CYOU, AVG and KLIC. I think all of those are worthy of consideration.

Vice stocks include MO, LO, RAI, VGR, RGR and SWHC.  I have owned a number of these over the past few years with pretty good success.  I think they are all worthy of a look-see.

In the For Profit Education arena we have APOL, ESI, STRA and BPI.  BPI is interesting to me as they have so much cash.  But all of them have declining revenues, I would have to think long and hard about that.

To be continued...