Stocks 2007- Part 2

January 1st, 2008 by Mark

Here’s the post-2007 update for my portfolio. All the quotes are from the close of December 31, 2007. As usual, I’m not posting my IRA investments.

Stocks I’ve bought since 2005:

Symbol Shares Current Price Current Value Purchase Date Cost $ Gain % Gain
MIDD 80* 76.62 6,129.60 02/28/2005 2,189.20 3,940.40 180.0
MIDD 40* 76.62 2,506.20 03/17/2005 1,061.79 2,003.01 188.6
BWLD 40* 23.22 1,857.60 02/28/2005 1,500.00 357.60 23.8
BWLD 40* 23.22 1,857.60 05/05/2005 1,160.00 697.60 60.1
BWLD 50 23.22 1,161.00 08/06/2007 1,609.99 -448.99 -27.9
BWLD 100 23.22 2,322.00 10/301/2007 3,109.99 -787.99 -25.3
UFCS 50 29.09 1,454.50 03/28/2005 1,713.00 -258.50 -15.1
COLM 40 69.5 2,771.18 06/30/2005 1,950.80 820.38 42.1
FHR 50 45* 2,250.00 08/02/2005 1,611.50 685.50 39.6
FLML 80 9.98 798.40 08/05/2005 1,500.00 -701.60 -46.8
FLML 200 9.98 1,996.00 08/24/2007 1,829 167.00 9.1
NTES 80 18.96 1,516.80 08/08/2005 1,504.00 12.80 0.85
SCSS 90* 10.45 930.49 10/06/2005 1,103.40 -172.91 -15.7
SNDA 120 33.34 4,000.80 12/19/2005 2,040.00 1,960.80 96.1
SNDA 130 33.34 4,334.20 02/21/2006 2,025.50 2,308.70 114.0
SNDA 150 33.34 5,001.00 03/01/2006 2,045.00 2,956.00 144.6
CTRP 100* 56.00 5,590.00 05/02/2006 2,279.00 3,311.00 145.3
CTRP 100* 57.47 5,747.00 05/02/2006 2,279.00 3,468.00 152.2
CMG 45 108.27 4,862.08 02/21/2007 2,869.74 1992.34 69.4
CMG.B 45 119.11 5,349.90 08/07/2007 4,442.01 907.89 20.7
TINY 250 8.79 2,197.50 05/23/2007 2,995.99 -798.49 -26.7
TINY 250 8.79 2,197.50 11/09/2007 2,562.47 -364.97 -14.2
GIGM 150 18.75 2,812.50 07/19/2007 1,977.99 834.51 42.2
GIGM 175 18.75 3,281.25 7/30/2007 1,929.99 1,351.26 70.0
PNRA 50 38.52 1,926.00 07/27/2007 2,033.49 -107.49 -5.3
PANC 600 .79 474.00 07/27/2007 1,947.39 -1,473.39 -75.7
LOOP 100 14.05 1,405.00 08/03/2007 1,909.99 -504.99 -26.4
LOOP 200 14.05 2,810.00 11/20/2007 2,949.99 -139.99 -4.7
CMED 75 44.39 3,329.25 10/10/2007 2,998.74 330.51 11.0
SIMO 125 17.78 2,222.50 10/11/2007 2,634.99 -412.49 -15.7
STP 35 82.32 2,881.20 11/09/2007 2,220.92 660.28 29.7
Total $22,547 +34.2

My Annualized Gain: +31.7%
SP 500: +5.5%
Wilshire 5000: +6.1%
Russel 2000: +4.6%

Sales

I sold quite a bit during the second half of 2007. I sold my positions in Columbia Sportswear, Chipotle, and Select Comfort. I also sold half of my Ctrip stock.

I sold Columbia Sportswear because its footwear wasn’t the hit I thought it would be. I still think the company will do fairly well, but there are better places for my money. Select Comfort, on the other hand really does look like its in trouble. Its same-store sales figures have been disappointing and its marketing has been lackluster to say the least. Chipotle and Ctrip, are still both great companies. They just weren’t quite great enough to justify the price at which they were trading. In the event of a major correction or an off-quarter, I could buy back into either one.

Other holdings

I have a small investment in an index fund and my IRA investments. I carry margin debt, so my portfolio isn’t actually worth the amount listed above.[2].

Looking Back

What a brutal few months. The market as a whole is down from where it was 6 months ago, but my holdings have been clobbered without mercy. The pain probably isn’t over, either. That’s what I get for investing in small and relatively un-hyped companies. It’s worth it, though.

I’m pleased with my choices for the most part, but there has definitely been one weak area of my portfolio– biotech. I can’t really say for sure if this is due to the unpredictable nature of the sector, or to my own relatively weak understanding of it. In any case, the business prospects of both FLML and PANC have deteriorated significantly. Panacos, in particular, is just a setback away from bankruptcy. Neither stock is a good candidate to sell, though, since the market has already priced them for their less certain futures.

Perhaps the most painful decisions I’ve made were those of inaction. I saw Suntech Power more than double in value before I bought it, and I missed a six-bagger in Baidu since I first identified it.

Looking Forward

Right now, I see better opportunities than I have since starting the Toshuo Portfolio in 2005. Buffalo Wild Wings, Shanda (盛大), Motion Technology Corp., and Loop.net are absolute steals!

Related post: Stocks 2007- Part 1
Related post: Stocks 2006- Part 2
Related post: Stocks 2006- Part 1
Related post: My 2005 Investments

[1] Some stocks have split.
[2] I carry a margin balance. That means that I’ve borrowed money to make some of my investments. The liquidation value of my account isn’t actually the total listed above.

Legal Disclaimer: All of the information in this article is accurate to the best of my knowledge. However, I make no guarantee about the accuracy of anything written above. I’m not responsible for any mis-typings, or any other errors in the information. If you purchase any stock solely because I did, you do so at your own risk.

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4 Responses to “Stocks 2007- Part 2”

  1. 1 Scott Says:

    Just curious, which index funds would you recommend? I’m looking to hold something for the next 10+ years, so anything besides the S&P 500 that you like?

    Scott

  2. 2 Mark Says:

    I’m not really qualified to make any recommendations. I don’t own any funds myself, but I used to have a Vanguard total market index. The main thing I’d look for is something with a low expense ratio (which most index funds do). Also, I’d try to make sure that the fund isn’t just a collection of big companies, like the S&P500. Smaller companies have performed better historically.

  3. 3 Prince Roy Says:

    Are you still with Ameritrade? Why did you choose this company over the other discount brokerages? Any thoughts would be most appreciated.

  4. 4 Mark Says:

    Yes, I’m still with Ameritrade. When I picked them, it was because I thought they were the least expensive decent option. I’m still with them due to inertia, mostly. If I were signing up today, I’d probably pick Scottrade. It’s a bit cheaper.

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