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2014 April Update


The portfolios and capital gains summaries are current to the end of the month. There was hedging activity as well as investment activity this month.


The Yahoo Java screener was inaccessible.

Starting this month, market values for options will be determined from the bid price rather than the price of the last trade. The bid price more accurately reflects the value of an option. Consequently, capital gains for this month do not reflect actual performance.

Comprehensive Strategy, stocks

Selection list

The list was generated before the April 25 market opening. Price histories, adjusted for splits and dividends, were downloaded from Yahoo:

Stock                          Trend      Hardnose Group and End Market    
-----------------------------  -----  -------------------------------------
CSV   Carriage Sevices         278 X  Personal Sevices                  USA
PGTI  PGT Inc                  253 X  Building Materials           USA/intl
ACT   Activis plc              239    Drugs                            intl
TLF   Tandy Leather Factory    205    Apparel                      USA/intl
RAD   Rite Aid Corp            201    Retail, Variety                   USA
MPAA  Motorcar Parts           197    Auto Parts                 USA/Canada
FOE   Ferro Corp               179    Chemicals                    USA/intl
FUJHY Fuji Heavy Inds          172    Conglomerate                     intl
AWH   Allied World Assurance   172    Insurance                        intl
MEI   Methode Electronics      170 X  Electronic Equipment             intl
GILD  Gilead Sciences          166    Biotechnology                    intl
CAR   Avis Budget Group        165    Rental Services                  intl
STZ   Consolidated Brands      164    Beverages, Alcoholic         USA/intl
GY    GenCorp Inc              162    Aerospace & Defense               USA
KS    KapStone Paper           156 X  Paper                        USA/intl
HII   Huntington Ingalls       154    Aerospace & Defense               USA
FSS   Federal Signal           151    Waste Management             USA/intl
VRX   Valeant Pharma-          148    Drugs                            intl
DAL   Delta Air Lines          147    Airlines                         intl
GA    Giant Inteactive         145    Software                        China

Portfolio

I sold BITA, CAMP, and JAZZ because they developed downtrends.

I chose GILD for the monthly purchase. CSV, PGTI, and MEI were bypassed because they were halfway towards a trend reversal. ACT, MPAA, and AWH were bypassed because I already own them. TLF, RAD, and FOE were bypassed because they are in the same groups and end markets as stocks I already own. FUJHY was bypassed because it is a conglomerate:

Stock      Hardnose Group        Qty        Start               End        
-----   --------------------   -----  -----------------   -----------------
BITA    Information Services     750  07/26/13    9,222   04/08/14   24,991
CAMP    Electronic Equipment    1500  07/27/12   11,171   04/07/14   37,144
JAZZ    Biotechnology            250  01/27/12   12,005   04/07/14   31,548

Stock      Hardnose Group        Qty        Start            End of Month  
-----   --------------------   -----  -----------------   -----------------
AWH     Insurance                200  03/27/14   20,356   04/30/14   21,538
CPA     Airlines                 150  08/27/13   19,904   04/30/14   20,292
DXPE    Industrial Equipment     250  09/27/12   11,901   04/30/14   28,302
EADSY   Aerospace & Defense     1000  12/13/13   18,548   04/30/14   17,050
GILD    Gilead Sciences          300  04/25/14   22,206                    
MPAA    Auto Parts               700  02/27/14   17,135   04/30/14   19,208
MU      Semiconductors          1000  09/27/13   17,935   04/30/14   26,120
MWE     Oil & Gas                300  12/15/11   16,044   04/30/14   19,002
PGTI    Building Materials      2000  06/27/13   17,304   04/30/14   19,900

Capital gains

 Jul    Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr   Stock
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
                                                                1182    AWH
 6523  -6501   7910   -786   4174 -16015                               AFSI
 6317  -2097   1064   5586    438   2877  -5015  -3607                 BBSI
                                                 -3161                 BCOR
        2135   3600  12585  10485    690  -1965   7569                 BITA
                                                  7013  -3120  -1889   BITA
 2250   3120   3660   1121                                             CAMP
                      8865   2130   4545   2265   3840  -6255  -4661   CAMP
  402    368    860  -1543    777   -682  -1554   -106  -2040           CHL
                896   1631    282   1303  -4411    714   1459  -1486    CPA
 1255   -565   5495   6465   3040   8610   -893                        DXPE
                                          -4790   1430  -1708   4570   DXPE
                                           -868    590   -320   -900  EADSY
                                                                       GILD
                     -3983                                             IGLD
 3414   6066   2140   -615  13090    629                               JAZZ
                                    2410   6275     71  -3316  -3122   JAZZ
 5965    190   3670  -5055   1615   1670  -6565   -596                  LAD
13380   6375  -7035  -3060   -264                                      MGAM
                            -2850                                      MGAM
                                                         1464    609   MPAA
                      -255   3420    650   1290   1150   -530   2460     MU
 1008  -1026   1632    615  -1563   -882   1218  -1902    441   -594    MWE
  125                                                                   OCN
 3200   1410   2665    230    215   -605  -5655   -547                  OCN
 2696    360   -560   1100   -900    240   1120   1820   -160  -3120   PGTI
                                    1381  -3143  -2580                 SLCA
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
46535   9835  25997  22901  34090   6821 -22691  11697 -14085  -6951  Total

Comprehensive Strategy, call options

Selection list

The list was generated before the April 25 market opening. Price histories, adjusted for splits and dividends, were downloaded from Yahoo:

Stock                          Merit      Hardnose Group and End Market    
-----------------------------  -----  -------------------------------------
UNP   Union Pacific            391    Railroads                         USA
PII   Polaris Industries       390    Recreation                   USA/intl
HD    Home Depot               354    Home Furnishings                  USA
CMCSK Comcast Corp             318    Utilities, Telecom               intl
CMCSA Comcast Corp             310    Utilities, Telecom               intl
AZO   Autozone Inc             302    Auto Parts                        USA
PRGO  Perrigo Co               283    Drugs                        USA/intl
CI    Cigna Corp               279    Healthcare Plans             USA/intl
LYB   LyondellBasell Ind       275    Chemicals                        intl
MCK   McKesson Corp            272    Drugs                             USA
ACT   Actavis plc              250    Drugs                            intl
DFS   Discover Financial       237    Financial Services                USA
STZ   Consolidated Brands      210    Beverages, Alcoholic         USA/intl
BIIB  Biogen Idec              208 X  Biotechnology                USA/intl
GILD  Gilead Sciences          182    Biotechnology                    intl
CAR   Avis Budget Group        174    Rental Services                  intl
RAD   Rite Aid                 158    Retail, Variety                   USA
MU    Micron Technology        157    Semiconductors                   intl
PPC   Pilgrim's Pride          140    Meat Products              USA/Mexico
MPEL  Melcro Crown             129 X  Entertainment                    Asia

Portfolio

I chose PPC for the monthly purchase. AZO was bypassed because at $528.88 it exceeded the price limit. BIIB was bypassed because it was halfway towards a trend reversal. CMCSA, PRGO, MCK, and RAD were bypassed because they are in the same groups and end markets as stocks I already own. The others were bypassed because I already own them:

Option      Hardnose Group       Qty        Start            End of Month  
----------  --------------------  --  -----------------   -----------------
ACT15C95    Drugs                  2  03/27/13    1,910   04/30/14   21,680
CAR15C35    Rental Services        7  05/24/13    3,793   04/30/14   13,090
CI15C60     Healthcare Plans       3  01/25/13    2,317   04/30/14    6,060
CMCSK15C37  Utilities, Telecom     5  12/14/12    2,047   04/30/14    6,750
DFS16C60    Financial Services     3  03/27/14    1,918   04/30/14    1,680
FDO16C65    Retail, Variety        3  12/13/13    2,269   04/30/14    1,110
GNRC16C50   Machinery              5  11/20/13    5,107   04/30/14    7,000
HD15C77.5   Home Furnishings       3  09/27/13    2,089   04/30/14    1,650
LYB15C70    Chemicals              3  07/26/13    2,200   04/30/14    6,840
PETM15C70   Retail, Specialty      3  11/27/12    3,550   04/30/14    1,080
PII15C87.5  Recreation             2  02/27/13    2,750   04/30/14    9,240
PKG16C72.5  Packaging              3  02/27/14    2,452   04/30/14    1,710
PPC16C22.5  Meat Products         10  04/25/14    4,756                    
ROST15C65   Apparel                3  06/27/13    2,488   04/30/14    1,980
STZ15C65    Beverages, Alcoholic   3  10/25/13    2,284   04/30/14    4,950
UNP16C175   Railroads              1  01/27/14    1,639   04/30/14    2,490

Capital gains

 Jul    Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
    0      0      0   2960      0   3372      0      0      0   8128    ACT
 1340  -2314    168    872   2384   1500    -89                         AZO
  -70  -1610   -420    840   2100      0   1400   1589   2821   2660    CAR
 2067     60    504      0   -207      0   1725  -2712    888   -720     CI
   90    250      0      0      0      0      0      0      0   3850  CMCSK
  885  -1075   2525   -255    610     45    608                         DFS
                                                                -238    DFS
 -201   -225    -48    474     60    -45   -340                         DRI
                                            -10      0      0  -1149    FDO
               -482   1200  -1615    -50  -2302                         GME
                                    1493  -1435      0   3135  -1300   GNRC
                       101    399    171  -1155    630   -540    -45     HD
         320    180    570   -270    534      0   1623   1143    540    LYB
   30   -210    810   -360    -57   -291  -1482     36    435   -351   PETM
-1566                                                                   PHM
 1020      0      0      0      0      0      0      0      0   5660    PII
                                                          368  -1110    PKG
                                                                        PPC
  215    201    537      0   1131  -1188      0      0      0  -1404   ROST
                              806     90   1278    942    300   -750    STZ
  264  -1302      0      0   1928     50    620                         UNP
                                                   311    689   -149    UNP
 ----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
 4074  -5905   3774   6402   7269   5681  -1182   2419   9239  13622  Total

Comprehensive Strategy, hedges

Selection list

The list was generated before the April 10 market opening. Price histories, adjusted for splits and dividends, were downloaded from Yahoo:

Stock                          Trend    Hardnose Group and End Market   Exp
-----------------------------  -----  --------------------------------  ---
WTW   Weight Watchers          -110   Personal Services     NAmer/intl  Jan
BWP   Boardwalk Pipeline        -94   Oil & Gas                    USA  Jan
NUAN  Nuance Communications     -84   Software                    intl  Jan
POT   Potash Corp               -75   Agriculture                 intl  Jan
EVEP  EV Energy                 -66   Oil & Gas                    USA  Jan
EC    Ecopetrol SA              -65   Oil & Gas               Colombia  Nov
KOF   Coca-Cola FEMSA           -63   Beverages, Soft        LatinAmer  Nov
AEO   American Eagle            -63   Apparel               USA/Canada  Nov
XXIA  Ixia                      -62   Internet Services       USA/intl  Nov
ARCO  Arcos Dorados             -60   Restaurants               Brazil  Nov
DDD   3D Systems                -60   Computers               USA/intl  Nov
UTEK  Ultratech Inc             -57   Semiconductors              intl  Nov
RAX   Rackspace Hosting         -54   Information Services        intl  Jan
BHP   BHP Billiton              -54   Basic Materials             intl  Nov
RKUS  Ruckus Wireless           -54   Computers                   intl  Nov
SINA  SINA Corp                 -53   Internet Services          China  Jan
DLR   Digital Realty Trust      -53   Real Estate         NAmer/Europe  Jan
ANF   Abercrombie & Fitch       -52   Apparel                 USA/intl  Nov
MDCO  The Medicines Co          -52   Drugs                       intl  Jan
NXST  Nexstar Broadcasting      -52   Entertainment                USA  Nov
SCCO  Southern Copper           -51   Basic Materials             intl  Jan
CTXS  Citrix Systems            -50   Software                    intl  Jan
ALTR  Altera Corp               -49   Semiconductors              intl  Jan
HTS   Hatteras Financial        -47   Real Estate                  USA  Nov
LNKD  LinkedIn Corp             -47   Information Services        intl  Nov
PPO   Polypore International    -47   Machinery               USA/intl  Jan
GTN   Gray Television           -47   Entertainment                USA  Nov
AGNC  American Capital          -47   Real Estate                  USA  Jan
QLIK  Qlik Technologies         -46   Software           Americas/intl  Nov
VIV   Telefonica Brasil         -46   Utilities, Telecom        Brazil  Nov
BDE   Black Diamond             -46   Recreation              USA/intl  Nov
CLF   Cliffs Natural Resources  -46   Basic Materials             intl  Jan
MOS   Mosaic Co                 -45   Agriculture                 intl  Jan
NLY   Annaly Capital            -45   Real Estate                  USA  Jan
BRCM  Broadcom Corp             -44   Semiconductors              intl  Nov
SFY   Swift Energy              -44   Oil & Gas                    USA  Nov
SXE   Southcross Energy         -44   Oil & Gas                    USA  Nov
CSIQ  Canadian Solar            -43   Semiconductors              intl  Jan
MDC   MDC Holdings              -43   Homebuilding                 USA  Jan
SSNI  Silver Spring Networks    -43   Computers               USA/intl  Jan
DHX   Dice Holdings             -43   Business Services       USA/intl  Jan

Portfolio

Before the April 10 market opening, the total market value of the stock portfolio was $168,150 and the total market value of the underlying stocks in the call option portfolio was $372,044. The number of hedges required was (168150 + 372044/2)/20000, which rounds to 18:

All stocks in the real estate group were bypassed. POT, BHP, CLF, MOS, MDC, and SSNI were bypassed because they have not extended their downtrends in six months. Others were bypassed because they were in the same groups and end markets as stocks higher in the list.

I tried to buy 40 BDE11P10, but somehow I ended up with only 7:

Option      Hardnose Group       Qty        Start            End of Month  
----------  --------------------  --  -----------------   -----------------
AEO11P10    Apparel               30  04/10/14    3,632   04/30/14    3,450
ARCO11P10   Restaurants           40  04/10/14    5,239   04/30/14    6,600
BDE11P10    Recreation             7  04/10/14      993   04/30/14      455
BWP01P12.5  Oil & Gas             30  04/10/14    3,242   04/30/14    1,800
DDD11P50    Computers              6  04/10/14    4,651   04/30/14    5,742
DHX11P5     Business Services     60  04/10/14    3,055   04/30/14    1,500
EC11P35     Oil & Gas             10  04/10/14    2,616   04/30/14    2,000
KOF11P105   Beverages, Soft        4  04/10/14    3,655   04/30/14    3,320
MDCO01P25   Drugs                 14  04/10/14    6,221   04/30/14    5,460
NUAN01P15   Software              20  04/10/14    2,744   04/30/14    2,700
NXST11P40   Entertainment         10  04/10/14    6,056   04/30/14    5,900
PPO01P35    Machinery             10  04/10/14    4,846   04/30/14    5,200
RAX01P32.5  Information Services  14  04/10/14    7,201   04/30/14    9,380
SINA01P55   Internet Services      6  04/10/14    5,353   04/30/14    7,500
UTEK11P25   Semiconductors        14  04/10/14    4,569   04/30/14    3,220
VIV11P20    Utilities, Telecom    20  04/10/14    2,840   04/30/14    2,800
WTW01P20    Personal Services     20  04/10/14    9,024   04/30/14    7,800
XXIA11P12.5 Internet Services     30  04/10/14    5,012   04/30/14    4,800

Capital gains

 Jul    Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
                                                                -182    AEO
                                                                1361   ARCO
                                                                -538    BDE
                                                               -1442    BWP
                                                                1091    DDD
                                                               -1555    DHX
                                                                -616     EC
                                                                -335    KOF
                                                                -761   MDCO
                                                                 -44   NUAN
                                                                -156   NXST
                                                                 354    PPO
                                                                2179    RAX
                                                                2147   SINA
                                                               -1349   UTEK
                                                                 -40    VIV
                                                               -1224    WTW
                                                                -212   XXIA
 ----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
                                                               -1322  Total

Real Estate Fund Strategy

Portfolio

Option          Description      Qty        Start            End of Month  
----------  --------------------  --  -----------------   -----------------
IYR15C64    US Real Estate ETF     3  11/27/12    1,825   04/30/14    1,848
IYR15C64    US Real Estate ETF     3  12/14/12    1,490   04/30/14    1,848
IYR15C69    US Real Estate ETF     3  01/25/13    1,225   04/30/14      828
IYR15C68    US Real Estate ETF     3  02/27/13    1,369   04/30/14    1,005
IYR15C70    US Real Estate ETF     3  03/27/13    1,180   04/30/14      675
IYR15C73    US Real Estate ETF     3  04/26/13    1,195   04/30/14      327
IYR15C73    US Real Estate ETF     3  05/24/13    1,264   04/30/14      327
IYR15C67    US Real Estate ETF     3  06/27/13    1,465   04/30/14    1,185
IYR15C68    US Real Estate ETF     3  07/26/13    1,450   04/30/14    1,005
IYR15C63    US Real Estate ETF     3  08/27/13    1,462   04/30/14    2,055
IYR15C65    US Real Estate ETF     3  09/27/13    1,336   04/30/14    1,605
IYR15C68    US Real Estate ETF     3  10/25/13    1,330   04/30/14    1,005
IYR16C65    US Real Estate ETF     3  11/20/13    1,495   04/30/14    1,800
IYR16C63    US Real Estate ETF     3  12/13/13    1,450   04/30/14    2,325
IYR16C65    US Real Estate ETF     3  01/27/14    1,294   04/30/14    1,800
IYR16C69    US Real Estate ETF     3  02/27/14    1,270   04/30/14    1,335
IYR16C67    US Real Estate ETF     3  03/27/14    1,288   04/30/14    1,500
IYR16C70    US Real Estate ETF     3  04/25/14    1,180   04/30/14         

Capital gains

 Jul    Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
 2519  -6484   1316   3029  -7771  -1900    780   4487   -778   3215    IYR

Easy Strategy

Portfolio

I sold everything:

Option          Description      Qty        Start               End        
----------  --------------------  --  -----------------   -----------------
SPY15C150   S&P 500 Index ETF      1  01/25/13    1,243   04/10/14    3,776
SPY15C155   S&P 500 Index ETF      1  02/27/13    1,037   04/10/14    3,318
SPY15C160   S&P 500 Index ETF      1  03/27/13    1,020   04/10/14    2,879
SPY15C160   S&P 500 Index ETF      1  04/26/13    1,104   04/10/14    2,879
SPY15C165   S&P 500 Index ETF      1  05/24/13    1,282   04/10/14    2,455
SPY15C165   S&P 500 Index ETF      1  06/27/13    1,097   04/10/14    2,455
SPY15C170   S&P 500 Index ETF      1  07/26/13    1,079   04/10/14    2,036
SPY15C165   S&P 500 Index ETF      1  08/27/13    1,122   04/10/14    2,455
SPY15C170   S&P 500 Index ETF      1  09/27/13    1,059   04/10/14    2,036
SPY15C180   S&P 500 Index ETF      1  10/25/13      838   04/10/14    1,281
SPY16C180   S&P 500 Index ETF      1  11/20/13    1,577   04/10/14    1,722
SPY16C179   S&P 500 Index ETF      1  12/13/13    1,520   04/10/14    1,795
SPY16C179   S&P 500 Index ETF      1  01/27/14    1,569   04/10/14    1,795
SPY16C185   S&P 500 Index ETF      1  02/27/14    1,785   04/10/14    1,806
SPY16C185   S&P 500 Index ETF      1  03/27/14    1,433   04/10/14    1,428

Capital gains

 Jul    Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
 2282  -2069   1677   4336   3446   2944  -5285   5971    674    -89    SPY