Tuesday, November 8, 2011

Back to the Beginning

Now that I've at least gone over each company that I owned at the time, it is now time to work on re-balancing this portfolio while simultaneously updating on the companies I've bought since I started.  Looking below we see a very unbalanced portfolio.

The observant reader will notice that Red Hat is still at a lofty 28% plus despite the fact that I claimed I had divested due to this overly high number.  Well, I did in fact divest, but Red Hat is hitting new highs and the percentage has risen back to my original 28%.  The irony of course is that had I not divested, I'd have significantly more assets, but, nevertheless, I probably need to divest again. 

In addition to RHT, based from a pure analytical standpoint, I should also divest of MITK.  However, MITK is still very much on the rise long term with huge upside potential, so I may put off for a little.  Also, anything over 8% is in my opinion getting a bit high.  As much as I love Under Armour, it too is hitting recent highs and fluctuates between the high 60's and low 80's, so I may take advantage of its recent highs to sell half my stake.  If it drops down to $66 or so, consistent with its price after debt issues in Europe crop up, I would consider re-investing.  I still like UA for the long term as it's on the up, but it may be getting a little ahead of itself.

On the flip side, a bunch of 1% holdings hold little value.  Even if they skyrocket, like MITK did, going from 1 to 10% is not as impressive as going from 4 to 40%.  I'm looking at a strategy of dumping Dryships, a company which depends on a strong world economy, and racking up Brigus Gold.  My play on Northgate Mining payed off when it was purchased by AuRico Gold, but now I own AuRico gold and not the company I wanted - Northgate.  I'll hold off the verdict on AuRico but I may dump that.  I'd also like to continue my high risk/ high reward play on SORL by increasing my holdings there. 

So, as part of a short term re-balancing strategy, I should trim RHT and UA, dump DRYS and maybe later AUQ.  I addition to increasing BRD and SORL, I am looking to start positions on Mosaic and Israeli generic pharmaceutical company TEVA.

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