Monday, May 28, 2007

Portfolio A1 Holds Steady as RKT Loses Altitude

For the second week in a row, at least one Portfolio A1 holding fell 10% during the week. Last week it was Tesoro (TSO), which continued to recover this week; the most recent victim is Rock-Tenn (RKT), whose fall was offset almost imperceptibly by a $0.10 dividend paid out on 5/21. While RKT has been a strong performer since being added to the portfolio during the first week in March, the recent weakness makes this holding vulnerable to being dropped in the coming weeks.

In spite of RKT’s difficult week, Portfolio A1 has increased its performance advantage over the benchmark S&P 500 to 2.2%.

There are no changes to the portfolio for the coming week.

A snapshot of the portfolio is as follows:


Bill Luby said...

A quick note about the handling of the RKT dividend for accounting purposes: because the Portfolio123 approach for recognizing dividends is currently in flux, I have chosen to add a manual transaction that essentially automatically reinvests the cash from the RKT dividend back into RKT at a cost basis of approximately $0.00.

This method of accounting will also have the added benefit of a more accurate calculation of the RKT return.

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
Web Analytics