Sunday, April 13, 2008

Outperforming Portfolio Since September 2007 Using Cheap Growth to Breakout Screen

Sometime back, we created a (buy and hold) portfolio on an online site using our Cheap Growth Ready to Breakout Screen.

Many months later, after the S&P 500 declined 9.42% from September 12, 2007 to April 11, 2008, we checked the portfolio and discovered that the portfolio even during the market decline increased by 2.21% outperforming the S&P 500 and even posting a gain!

The Portfolio

Here is the Portfolio. We tried evenly weighting each position, but weighting could vary.

ACGY $24.20 $27.77 -13.18%
AMX $62.65 $64.100.39%
ATW $99.61 $78.5926.49%
BEAV $35.80 $44.45-20.82%
CAM $45.71 $43.40 5.07%
CEO $158.77 $130.71 21.21%
CHK $47.60 $37.6026.35%
CHL $81.40 $65.9923.1%
CLB $131.40 $110.01 19.18%
DWSN $72.16 $76.39-5.79%
ESL $55.30 $50.988.22%
FTI $61.81 $51.5319.7%
GIGM $15.30 $15.74-3.05%
HLX $32.53 $45.65-29.58%
HRS $48.69 $59.90-18.71%
KNDL $43.68 $39.0211.69%
NNDS $46.51 $56.50 -18.02%
NOV $67.48 $67.99-1%
NTG $42.85 $50.78 -15.87%
NWK $5.77 $12.55-54.28%
OIIM $8.03 $14.49-44.83%
OTEX $33.50 $26.0428.39%
SGP $17.21 $32.48-47.23%
SII $67.77 $69.33-2.35%
SXE $24.54 $22.0111.24%
VIP $31.15 $25.5921.48%
WHQ $72.54 $69.593.99%

Overall Results

Period: September 12, 2007 to April 11, 2008:
  1. S&P 500 Return: -9.42%
  2. This Portfolio: 2.21%

Cash Percentage (Portfolio): 5.7%

The Stocks and Sectors

Stock Name Sector
ACGY Acergy Oil and Gas
AMX America Movil Central and South American Telecom
ATW Atwood Oceanics Oil and Gas
BEAV B.E. Aerospace Aerospace and Defense
CAM Cameron International Oil and Gas
CEO CNOOC Chinese Oil and Gas
CHK Chesapeake Energy Oil and Gas
CHL China Mobile Ltd Chinese Telecom
DWSNDawson GeophysicalOil and Gas
ESLEsterline Technology Aerospace and Defense
FTIFMC Technologies Chemicals: Agriculture, Industrial, Specialty
GIGMGigaMedia Ltd Chinese Online Game and Internet Services
HLXHelix Energy Oil and Gas
HRS Harris Group Industrial Communication Systems
KNDL Kendle International Clinical Research
NNDS NDS Group Broadcast and Digital TV Equipment
NOV National Oilwell Varco Oil and Gas
NTG Natco Group Oil and Gas
NWK Network Equipment Telecom Equipment and Networking
OIIM O2Micro Int'l Semiconductors
OTEXOpen Text Enterprise Content Manager Systems: Tech
SGP Schering-Plough Pharma
SII Smith International Oil and Gas
SXE Stanley Information Equipment for Defense and Gov't
VIP Vimpel Communcations Russian (Wireless) Telecom
WHQ W-H Energy Services Oil and Gas

Comments on Sector

A large part of the outperformance is due to overweighting the Oil and Gas sector, which continues to be a hot sector.

Other popular sectors on the portfolio are the Emerging Market Telecom plays, Aerospace and Defense, and select Tech and Pharma companies.

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