Saturday, May 06, 2006

Taking Stock

In the world of investing, result speaks louder than voice. That is why we at Stockyarns will do a little peak back into our picks (no pun intended) for the past three months. Let us imagine this is a quarterly earnings announcement. How did we do? How did our picks do? Is this just a bluff or you would have been making more money hiding them under your mattress than reading The Wall Street Affairs. Below are the results people. The name of the stocks, and how they have done since we picked them are indicated.

Recommended January
CVS: Up 15%
HSY: Up 1%

Recommended February
CBI: Up 13%
UNH: Down 17%

Recommended March
TGB: Up 77%
NSU: Up 40%
YHOO: Down 0.5%

On the net we are up on a percentage average by 18.5%. That is astounding considering the market was only up 5% in the same period. But here is my take, thou shall not lose money. Most of the gains have being from two penny stocks that have participated in the materials boom caused by the hot markets of CRIB (China, Russia, India and Brazil). I don't think the hotness is done, but I think it is time to take some gains off the table. Sell 25% of your holding and book the gains at this point. Ride the rest up another 20% and sell in mid July before a new round of earnings announcement up to 50% of your remaining holding. Bulls make money, Bears make money and Pigs (Hogs) get slaughtered. Don't be greedy.

Indeed, I will ask that you buy eBay if it ever comes below $30 and also buy RTP when materials sector shows its first sign of slow down, because many will panic and then it will be on its way up there again . The CRIB show no sign of slowing down, and the only thing slowing down now is the housing sector which you should be far away from; may be next year we shall go bargain hunting.

For now, stick with me and keep coming back. It is hard to thumb your nose at 19% gain in 3 months, isn't it?

**The Article of the week is 8 Common Investing Mistakes you should here at Motley Fool