Active Eye On Active Portfolio

It’s time for some investment talk. I have several portfolios that I have to maintain on a regular basis. First, there’s my Permanent Portfolio, then there’s my Active Portfolio. In my active portfolio, I maintain long-term stocks by purchasing more or selling for some good gains. Unfortunately, I haven’t been maintain my active portfolio like I should have been. I’ve been missing out on some good entry and exit points. Well until now! I’ve made a dedication to keep an eye on my portfolio and discount stocks out there to add to my portfolio as well as sell once particular companies meet my goals. This month, while the market was having its up and downs, a few of my securities were performing very well! Now I’m placing some exit points to lock in gains while still holding on to good companies.

Activision (ATVI) - Being an avid videogamer, I know when a lot of attention and focus goes to a videogame company even before it comes out. I know what the true customers want even before the media tries to hype it up. Last week, ATVI proved that once again! In the past, analyst have a habit of marking the companies 3rd quarter as their best year, so for ATVI’s 4th quarter, analyst only estimated a $0.05/share report. ATVI surprised everyone, including me, with a $0.17/share report. That’s more than three times the estimate! I’m now at a 40% gain so far, totaling to over 100% since first investing. NOTE ON ATVI: On Friday, May 9, 2008, I accidentally set an improper trigger that sold the stock before I was ready to. But I did cash out at a 50% gain! The bad news is, I just missed out on great gains from ATVI after their earnings report. I’ll be keeping a close eye on this for a new entry point.

Unit Corp (UNT) - I own two oil stocks, one international (SLB) and one more local (UNT). With UNT, I really like their valuations, past performance, and technicals when I purchased them last year. Last week, they also beat expectations pushing me up to a 30% gain.

What’s the game plan now? I’m beginning to hold companies until they produce a 20% return, as they continue to grow (and IF they continue to grow), I set triggers to lock in gains 5% below it’s highest peak. I’m going to be keeping an active eye on these companies and keep my trade triggers up-to-date. Let’s take UNT for example, even though I’m at 30%, my trigger is set for 25% in case if the market brings in some bad news. If the company moves up to 35% total gains, I’ll reset the trigger to lock in 30% gain, and I’ll continue this process until the trigger is finally filled and sold.

Also during this time, I am beginning to study a variety of companies for possible long-term investments. I really like industries in the range of insurance, technical, retail, and financial. These are currently being beaten up by market conditions and that’s what I like to see. I’m a long-term value investor and I like companies that know how to bring about a good turnaround even when Mr. Market is giving them problems. I’ve ran into a few companies with great valuations and technicals, but am unfamiliar with a few of the companies themselves. I’ll try to dedicate some time to learn more about these companies for long-term gains, and hopefully I’ll be able to present some good news to you a year from now.

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