Mechanical Investing for September 2007

With all the volatility this month, I thought it would be bad… but the month was basically a wash, a little higher than before. The market, though, has started to pull away a bit. My goal continues to be to beat the market, but that’s not currently happening. It’s September, so I’m easing back into some options again, buying out of the money calls.

  • Last 4 weeks: 2.8%
  • Last 3 months: -0.5%
  • Last 12 months: +4.5%
  • Year to date: +5.4% (Dow is +7.5 ytd from 12,463)

Holding for another month:

Ticker Bought Now Months Return  
CLB $101.74 $113.0 1 +11.1% Core Laboratories NV. From the Peg_Minimalist screen.
FDP $27.61 $26.24 1 -5.0% Fresh Del Monte Produce Inc. Sort of like overripe fruit. From the H52EgPS screen.
MCY $53.85 $53.16 10 -1.3% Mercury General Corp. From the LPE_YLD screen.
MDR $79.63 $95.47 3 +19.9% McDermott International. From the Screamers screen, then the RSPeg2 screen, but now the TREPPE screen.
PKOH $20.80 $27.43 4 +31.9% Park-Ohio Holdings Corp. Originally from the H52EgPS screen, then RSPeg2, but now TREPPE. Getting a little long in the tooth, though.
PFE $26.10 $24.97 7 -4.3% Pfizer Inc. From the LPE_YLD screen. Looks like a loss, but with dividends, it’s actually break even.

Selling these:

Ticker Bought Sold Months Return  
CFI $11.85 $9.97 1 -15.9% Culp Inc. Well, they can’t all be winners. From the Peg_Minimalist screen.
DO $92.90 $107.83 1 +16.1% Diamond Offshore Drilling Inc. From the TREPPE screen.
ISRG $206.66 $223.56 1 +8.2% Intuitive Surgical Inc. From the Screamers screen.
MLI $37.30 $35.20 1 -5.6% Mueller Industries Inc. From the H52EgPS screen.
NVT $64.37 $66.58 1 +3.4% NAVTEQ Corp. From the Screamers screen.
PCU $96.95 $107.53 1 +10.9% Southern Copper Corp. From the TREPPE screen.

New stocks for this month:

Ticker Bought Sold Months Return  
ARTC $57.39 $N/A 0 N/A% Arthrocare Corp. From the RSPeg2 screen.
FOSL $33.95 $N/A 0 N/A% Fossil Inc. Dinosaurs? Nope, fashion accessories. From the Screamers screen.
RDEN $24.76 $N/A 0 N/A% Elizabeth Arden Inc. From the Peg_Minimalist screen.
SFD $32.76 $N/A 0 N/A% Smithfield Foods Inc. That’s fun, they’re a “hog producer.” From the H52EgPS screen.
SIGM $43.82 $N/A 0 N/A% Sigma Designs, Inc, a tech-video company. From the Screamers and RSPeg2 screens.
NOV $129.06 $N/A 0 N/A% National Oilwell Varco Inc. From the Peg_Minimalist screen.

6/3 Options:

Ticker Bought Sold Months Return  
MDRBA $7.38 $N/A 0 N/A% MDR Feb 2008 Calls. Sell in early December.
RZJDC $14.00 $N/A 0 N/A% GRMN Apr 2008 Calls. Sell in early December.

The next trade will be October 1.

6 thoughts on “Mechanical Investing for September 2007

  1. I find it somewhat ironic and mildly amusing that your blog contains articles of spirituality along with your market trading activity, especially since the Bible states that Jesus suggested we should exercise caution in mixing the two. That said, you may be on to something. Perhaps church attendence would increase if the priests set up some of those red flashing LED signs with messages such as “The Holy Father recommends a buy today on Goldman Sachs at $192.50/share.”


  2. LoL. I seriously doubt that would happen; imagine the headlines if the SEC busted a church for touting a stock illegally.
    But I want to ask you about your statement “especially since the Bible states that Jesus suggested we should exercise caution in mixing the two.” I have a passing familiarity with what Jesus said, but I dont know which statement you’re referring to. Can you elaborate?


  3. I offer these passages:

    “Jesus entered the Temple area and drove out all who were buying and selling there. He overturned the tables of the money changers and the benches of those selling doves. ‘It is written,’ he said to them, ‘My house will be called a house of prayer but you are making it a den of robbers.'” Matt. 21:12-13 (see similar Mark 11:15-17, Luke 19:45-46, John 2:13-16)

    “Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal; but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” Matt. 6:19-21 (see similar Luke 12:33-4)

    Also the parable in Luke 12:16-21, which is portrays a prosperous farmer who wishes to tear down his barns and build bigger ones but is warned by God: “You fool…”, and is concluded by Jesus saying: “This is how it is with those who pile up riches for themselves but are not rich in God’s sight.”


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