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2014 May 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.


Starting this month, capital gains summaries will include purchases of stocks and call options made late in the month. This will simplify the bookkeeping while making a negligible difference in results.

Comprehensive Strategy, stocks

Selection list

The list was generated before the May 27 market opening. Price histories, adjusted for splits and dividends, were downloaded from Yahoo:

Stock                          Trend      Hardnose Group and End Market    
-----------------------------  -----  -------------------------------------
EADSY Airbus Group             251    Aerospace & Defense              intl
RAD   Rite Aid                 212    Retail, Variety                   USA
TLF   Tandy Leather Factory    205    Apparel                      USA/intl
UIHC  United Insurance         198    Insurance                         USA
MPAA  Motorcar Parts           197    Auto Parts                 USA/Canada
AWH   Allied World Holdings    172    Insurance                        intl
CAR   Avis Budget Group        169    Rental Services                  intl
GILD  Gilead Sciences          166    Biotechnology                    intl
STZ   Constellation Brands     164    Beverages, Alcoholic             intl
ANIK  Anika Therapeutics       163    Biotechnology               USA/ intl
GY    GenCorp Inc              162    Aerospace & Defense               USA
GMK   Gruma SAB                157    Packaged Goods               USA/intl
KS    KapStone Paper           156    Paper                        USA/intl
HII   Huntington Ingalls       154    Aerospace & Defense               USA
DAL   Delta Air Lines          153    Airlines                         intl
FSS   Federal Signal           151    Waste Management                  USA
VRX   Valeant Pharma_          148    Drugs                            intl
GA    Giant Interactive        145    Software                        China
MLI   Mueller Ind              144    Metal Fabrication            USA/intl
ASML  ASML Holding             142 X  Semiconductors                   intl

Portfolio

AWH split 3:1.

I chose GMK for the monthly purchase. EADSY, MPAA, AWH, CAR, GILD, and STZ were bypassed because I already own them. RAD, TLF, UIHC, ANIK, and GY were bypassed because they are in the same groups and end markets as stocks I already own:

Stock      Hardnose Group        Qty        Start            End of Month  
-----   --------------------   -----  -----------------   -----------------
AWH     Insurance                600  03/27/14   20,356   05/31/14   22,500
CPA     Airlines                 150  08/27/13   19,904   05/31/14   21,440
DXPE    Industrial Equipment     250  09/27/12   11,901   05/31/14   17,392
EADSY   Aerospace & Defense     1000  12/13/13   18,548   05/31/14   17,910
GILD    Biotechnology            300  04/25/14   22,206   05/31/14   24,363
GMK     Packaged Goods           500  05/27/14   20,416   05/31/14   20,975
MPAA    Auto Parts               700  02/27/14   17,135   05/31/14   16,674
MU      Semiconductors          1000  09/27/13   17,935   05/31/14   28,590
MWE     Oil & Gas                300  12/15/11   16,044   05/31/14   18,585
PGTI    Building Materials      2000  06/27/13   17,304   05/31/14   17,220

Capital gains

 Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr    May   Stock
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
                                                         1182    962    AWH
-6501   7910   -786   4174 -16015                                      AFSI
-2097   1064   5586    438   2877  -5015  -3607                        BBSI
                                          -3161                        BCOR
 2135   3600  12585  10485    690  -1965   7569                        BITA
                                           7013  -3120  -1889          BITA
 3120   3660   1121                                                    CAMP
               8865   2130   4545   2265   3840  -6255  -4661          CAMP
  368    860  -1543    777   -682  -1554   -106  -2040                  CHL
         896   1631    282   1303  -4411    714   1459  -1486   1148    CPA
 -565   5495   6465   3040   8610   -893                               DXPE
                                   -4790   1430  -1708   4570 -10910   DXPE
                                    -868    590   -320   -900    860  EADSY
                                                                2167   GILD
                                                                 559    GMK
              -3983                                                    IGLD
 6066   2140   -615  13090    629                                      JAZZ
                             2410   6275     71  -3316  -3122          JAZZ
  190   3670  -5055   1615   1670  -6565   -596                         LAD
 6375  -7035  -3060   -264                                             MGAM
                     -2850                                             MGAM
                                                  1464    609  -2534   MPAA
               -255   3420    650   1290   1150   -530   2460   2470     MU
-1026   1632    615  -1563   -882   1218  -1902    441   -594   -417    MWE
 1410   2665    230    215   -605  -5655   -547                         OCN
  360   -560   1100   -900    240   1120   1820   -160  -3120  -2680   PGTI
                             1381  -3143  -2580                        SLCA
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
 9835  25997  22901  34090   6821 -22691  11697 -14085  -6951  -8385  Total

Comprehensive Strategy, call options

Selection list

The list was generated before the May 27 market opening. Price histories, adjusted for splits and dividends, were downloaded from Yahoo:

Stock                          Merit      Hardnose Group and End Market    
-----------------------------  -----  -------------------------------------
PII   Polaris Industries       445    Recreation                   USA/intl
ACT   Activis plc              268    Drugs                            intl
UNP   Union Pacific            432    Railroads                         USA
HD    Home Depot, The          383    Home Furnishings                  USA
CMCSK Comcast Corp             354    Utilities, Telecom               intl
CMCSA Comcast Corp             350    Utilities, Telecom               intl
AZO   AutoZone Inc             327    Auto Parts                        USA
PRGO  Perrigo Co               297 X  Drugs                        USA/intl
CI    Cigna Corp               290    Healthcare Plans             USA/intl
MCK   McKesson Corp            288    Drugs                             USA
DFS   Discover Financial       256    Credit Services                   USA
GNRC  Generac Holdings         249 X  Machinery                    USA/intl
BIIB  Biogen Idec              229 X  Biotechnology                USA/intl
STZ   Constellation Brands     208    Beverages, Alcoholic             intl
GILD  Gilead Sciences          187    Biotechnology                    intl
RAD   Rite Aid                 183    Retail, Variety                   USA
CAR   Avis Budget Group        180    Rental Services                  intl
PPC   Pilgrim's Pride          165    Meat Products              USA/Mexico
MU    Micron Technology        165    Semiconductors                   intl
GPOR  Gulfport Energy          134 X  Oil & Gas                         USA

Portfolio

There was no purchase this month. All were disqualified because I already own them or they are in the same groups and end markets as stocks I already own.

Option      Hardnose Group       Qty        Start            End of Month  
----------  --------------------  --  -----------------   -----------------
ACT15C95    Drugs                  2  03/27/13    1,910   05/31/14   23,580
CAR15C35    Rental Services        7  05/24/13    3,793   05/31/14   15,540
CI15C60     Healthcare Plans       3  01/25/13    2,317   05/31/14    8,895
CMCSK15C37  Utilities, Telecom     5  12/14/12    2,047   05/31/14    7,200
DFS16C60    Credit Services        3  03/27/14    1,918   05/31/14    1,941
FDO16C65    Retail, Variety        3  12/13/13    2,269   05/31/14    1,200
GNRC16C50   Machinery              5  11/20/13    5,107   05/31/14    3,950
HD15C77.5   Home Furnishings       3  09/27/13    2,089   05/31/14    1,620
LYB15C70    Chemicals              3  07/26/13    2,200   05/31/14    8,760
PETM15C70   Retail, Specialty      3  11/27/12    3,550   5/31/14       165
PII15C87.5  Recreation             2  02/27/13    2,750   05/31/14    8,700
PKG16C72.5  Packaging              3  02/27/14    2,452   05/31/14    1,620
PPC16C22.5  Meat Products         10  04/25/14    4,756   05/31/14    6,300
ROST15C65   Apparel                3  06/27/13    2,488   05/31/14    1,800
STZ15C65    Beverages, Alcoholic   3  10/25/13    2,284   05/31/14    5,970
UNP16C175   Railroads              1  01/27/14    1,639   05/31/14    2,970

Capital gains

 Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr    May  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
    0      0   2960      0   3372      0      0      0   8128   1900    ACT
-2314    168    872   2384   1500    -89                                AZO
-1610   -420    840   2100      0   1400   1589   2821   2660   2450    CAR
   60    504      0   -207      0   1725  -2712    888   -720   2835     CI
  250      0      0      0      0      0      0      0   3850    450  CMCSK
-1075   2525   -255    610     45    608                                DFS
                                                         -238    261    DFS
 -225    -48    474     60    -45   -340                                DRI
                                     -10      0      0  -1149     90    FDO
        -482   1200  -1615    -50  -2302                                GME
                             1493  -1435      0   3135  -1300  -3050   GNRC
                101    399    171  -1155    630   -540    -45    -30     HD
  320    180    570   -270    534      0   1623   1143    540   1920    LYB
 -210    810   -360    -57   -291  -1482     36    435   -351   -915   PETM
    0      0      0      0      0      0      0      0   5660   -540    PII
                                                   368  -1110    -90    PKG
                                                                1544    PPC
  201    537      0   1131  -1188      0      0      0  -1404   -180   ROST
                       806     90   1278    942    300   -750   1020    STZ
-1302      0      0   1928     50    620                                UNP
                                            311    689   -149    480    UNP
 ----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
-5905   3774   6402   7269   5681  -1182   2419   9239  13622   8145  Total

Comprehensive Strategy, hedges

Selection list

The list was generated before the May 2 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
RNF   Rentech Nitrogen          -97   Agriculture             USA/intl  Jan
BWP   Boardwalk Pipeline        -94   Oil & Gas                    USA  Dec
VEEV  Veeva Systems             -91   Information Services        intl  Dec
CLUB  Town Sports               -80   Recreation                   USA  Dec
LITB  LightIn TheBox            -79   Retail, Specialty          China  Dec
CZZ   Cosan Ltd                 -69   Oil & Gas            Brazil/intl  Dec
EVEP  EV Energy                 -66   Oil & Gas                    USA  Dec
AGI   Alamos Gold               -63   Precious Metals             intl  Dec
HSTM  Healthstream Inc          -63   Information Services         USA  Dec
ARCO  Arcos Dorados             -60   Restaurants               Brazil  Nov
RKUS  Ruckus Wireless           -60   Computers                   intl  Nov
UTEK  Ultratech Inc             -57   Semiconductors              intl  Nov
PCYC  Pharmacyclics Inc         -57   Pharmaceuticals         USA/intl  Nov
QLIK  Qlik Technologies         -56   Software           Americas/intl  Nov
LNKD  LinkedIn Corp             -55   Information Services        intl  Nov
DANG  Dangdang Inc              -55   Retail, Specialty          China  Dec
KEYW  KEYW Holding              -55   Software                     USA  Nov
ENT   Global Eagle              -54   Entertainment               intl  Nov
LAYN  Layne Christensen         -54   Heavy Construction    NAmer/intl  Dec

Portfolio

The number of hedges required for last month's purchases of GILD and PPC16C22.5 was 1 + 1/2, which rounds to one or two. I chose RNF and LITB for the hedges. WTW and BWP were bypassed because they were already being used as hedges. VEEV and CLUB were bypassed because they are in the same group and end market as stocks already being used as hedges:

Option      Hardnose Group       Qty        Start            End of Month  
----------  --------------------  --  -----------------   -----------------
AEO11P10    Apparel               30  04/10/14    3,632   05/31/14    3,900
ARCO11P10   Restaurants           40  04/10/14    5,239   05/31/14    6,600
BDE11P10    Recreation             7  04/10/14      993   05/31/14      490
BWP01P12.5  Oil & Gas             30  04/10/14    3,242   05/31/14    1,200
DDD11P50    Computers              6  04/10/14    4,651   05/31/14    4,470
DHX11P5     Business Services     60  04/10/14    3,055   05/31/14    1,500
EC11P35     Oil & Gas             10  04/10/14    2,616   05/31/14    1,700
KOF11P105   Beverages, Soft        4  04/10/14    3,655   05/31/14    1,280
LITB12P5    Retail, Specialty     60  05/02/14    7,855   05/31/14    6,000
MDCO01P25   Drugs                 14  04/10/14    6,221   05/31/14    2,870
NUAN01P15   Software              20  04/10/14    2,744   05/31/14    2,280
NXST11P40   Entertainment         10  04/10/14    6,056   05/31/14    4,000
PPO01P35    Machinery             10  04/10/14    4,846   05/31/14    2,100
RAX01P32.5  Information Services  14  04/10/14    7,201   05/31/14    3,500
RNF01P15    Agriculture           20  05/02/14    3,724   05/31/14    3,100
SINA01P55   Internet Services      6  04/10/14    5,353   05/31/14    7,890
UTEK11P25   Semiconductors        14  04/10/14    4,569   05/31/14    3,710
VIV11P20    Utilities, Telecom    20  04/10/14    2,840   05/31/14    3,100
WTW01P20    Personal Services     20  04/10/14    9,024   05/31/14    6,200
XXIA11P12.5 Internet Services     30  04/10/14    5,012   05/31/14    5,400

Capital gains

 Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr    May  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
                                                         -182    450    AEO
                                                         1361      0   ARCO
                                                         -538     35    BDE
                                                        -1442   -600    BWP
                                                         1091  -1272    DDD
                                                        -1555      0    DHX
                                                         -616   -300     EC
                                                         -335  -2040    KOF
                                                               -1855   LITB
                                                         -761  -2590   MDCO
                                                          -44   -420   NUAN
                                                         -156  -1900   NXST
                                                          354  -3100    PPO
                                                         2179  -5880    RAX
                                                                -624    RNF
                                                         2147    390   SINA
                                                        -1349    490   UTEK
                                                          -40    300    VIV
                                                        -1224  -1600    WTW
                                                         -212    600   XXIA
 ----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
                                                        -1322 -19916  Total

Real Estate Fund Strategy

Starting this month, performances of individual purchases will not be tracked. This will simplify the bookkeeping.

Portfolio

Option          Description      Qty        Start                End       
----------  --------------------  --  -----------------   -----------------
IYR15C64    US Real Estate ETF     3  11/27/12    1,825                    
IYR15C64    US Real Estate ETF     3  12/14/12    1,490                    
IYR15C69    US Real Estate ETF     3  01/25/13    1,225                    
IYR15C68    US Real Estate ETF     3  02/27/13    1,369                    
IYR15C70    US Real Estate ETF     3  03/27/13    1,180                    
IYR15C73    US Real Estate ETF     3  04/26/13    1,195                    
IYR15C73    US Real Estate ETF     3  05/24/13    1,264                    
IYR15C67    US Real Estate ETF     3  06/27/13    1,465                    
IYR15C68    US Real Estate ETF     3  07/26/13    1,450                    
IYR15C63    US Real Estate ETF     3  08/27/13    1,462                    
IYR15C65    US Real Estate ETF     3  09/27/13    1,336                    
IYR15C68    US Real Estate ETF     3  10/25/13    1,330                    
IYR16C65    US Real Estate ETF     3  11/20/13    1,495                    
IYR16C63    US Real Estate ETF     3  12/13/13    1,450                    
IYR16C65    US Real Estate ETF     3  01/27/14    1,294                    
IYR16C69    US Real Estate ETF     3  02/27/14    1,270                    
IYR16C67    US Real Estate ETF     3  03/27/14    1,288                    
IYR16C70    US Real Estate ETF     3  04/25/14    1,180                    
IYR16C72    US Real Estate ETF     3  05/27/14    1,060                    

Capital gains

 Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr    May  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
-6484   1316   3029  -7771  -1900    780   4487   -778   3215   4945    IYR

Easy Strategy

Portfolio

This portfolio is empty.

Capital gains

 Aug    Sep    Oct    Nov    Dec    Jan    Feb    Mar    Apr    May  Option
-----  -----  -----  -----  -----  -----  -----  -----  -----  -----  -----
-2069   1677   4336   3446   2944  -5285   5971    674    -89      0    SPY