Test portfolio from Dec. 19th, 2006 - Dec. 21st, 2007 - I'm humbled!

Happy Holidays Friends,
About one year ago from today, on Tuesday, December 19th, 2006, I created a test portfolio compromised of 10 stocks from different
sectors. Based on my analysis, which I'll share with you later on, these 10 stocks were very under-valued. I bought a total of ~$10,000 of each of the 10 different stocks for a total of about $100,000.
I did a multi-variage analysis on 2200 or so stocks, and based on my regression analysis, I selected about 50 under-valued stocks. I then checked my 50 stocks with what analysts had to say about it. The 10 stocks that I chose from my initial screen of 50 stocks all had favorable ratings by analysts.
However, and this is a very humbling experience, my portfolio severely under-performed the S&P 500. Two of the 10 different stocks have actually become 'Not Active', probably due to being bought out or delisted.
When you eliminate the 2 stocks that have become inactive, my initial purchase for this "Model Portfolio" is about $80,000. Today, these 8 stocks are only valued at about $65,300.
The actual values are (included dividends, stock splits, etc.): Initial value: $79,906.80 Current value: $65,284.57
This represents a -18.3% decrease in value, and the S&P 500 increased by 2.4% (not including reinvested dividends).
------------------------------------------------------------------------------------------------------------------------------- Date: 19 Dec 2006 12:46:00 -0800 Subject: Test portfolio
Here are 10 stocks that I'm going to start tracking. My initial investment was $99,901.79 on Tuesday, December 19th. Today, the S&P 500 is 1426.11.
My basis for selecting these 10 stocks are the following: 1. I did my models, and these stocks are quite under-valued using my statistical criterias. 2. I cross-checked with what analysts on finance.yahoo.com had to say.
Symbol Cost Basis Shares Bought Value of Shares ACTS 8.57 1166 $9,992.62 BONT 35.18 284 $9,991.12 GNCMA 15.72 636 $9,997.92 HOFF 17.11 584 $9,992.24 PETD 43.4 230 $9,982.00 PHH 28.78 347 $9,986.66 PLSB 23.73 421 $9,990.33 RSCR 18.9 529 $9,998.10 WIRE 22 454 $9,988.00 WLSC 18.8 531 $9,982.80
TOTAL: $99,901.79
Only time will tell if my method will outperform the S&P 500 or not. Let's check periodically.
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Hopefully the stock market will evaporate and people will be forced to earn honest livings.
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One of the problems with undervalued stocks is they become more undervalued.
704set
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Would you like to enter your ten stocks into the 2008 Stock Picking Game? Just drop me an email with your ten stock. The email is:
snipped-for-privacy@hotmail.com
--
Lubow
To see my stock picks go to www.stockpickr.com Enter lubow in
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