It is Sunday, and I shall try to get through the rather busy week of March 6, 2006, when I posted review of three stocks. This review assumes a buy and hold strategy when calculating performance assuming that equal $'s of each security were purchased and held without regards to subsequent price performance. For the average performance, a simple mathematical average of the individual percentages is used to derive this figure.
In practice, I suggest and employ a very disciplined portfolio management strategy that involves selling losing stocks quickly and completely and gaining stocks slowly and partially. This difference between my actual strategy and the performance estimated on this review is significant and should be taken into consideration when reviewing these results. However, for the ease of calculating the "What if...?", this buy and hold approach is useful if not completely consistent with my own idiosyncratic approach to portfolio management.
On March 8, 2006, I posted Alliance Data Systems on Stock Picks Bob's Advice when the stock was trading at $45.22. Alliance Data Systems (ADS) closed at $77.15 on August 24, 2007, for a gain of $31.93 or 70.6% since posting.
On August 8, 200, ADS announced that shareholders had approved a $6.76 billion takeover of the company by the Blackstone Group. Since this company is to be acquired, I shall no longer be following this stock, and
ALLIANCE DATA SYSTEMS (ADS) IS RATED A HOLD
On March 10, 2006, I posted Universal Security Instruments (UUU) On Stock Picks Bob's Advice when the stock was trading at $21.65. UUU had a 4:3 stock split on April 4, 2006, and then another 4:3 stock split on October 17, 2006. Thus, our effective pick price was
$76.99 (08/27/07)
