Fat Pitch Financials Port Weathers the Storm

I thought some of you might be interested in seeing how the Fat Pitch Financials Portfolio positions fared today given all the doom and gloom in the air given yesterday’s international decline in equity prices. Today’s change in each of my position are as follows:

  • Mothers Work (MWRK): +4.14%
  • Western Sizzlin (WSZL): +2.69%
  • US Bancorp (USB): +1.66%
  • McGraw-Hill (MHP): +0.88%
  • USG Corp. (USG): +0.80%
  • Pfizer (PFE): -1.20%
  • Concord Camera (LENS): -2.07%
  • Broadridge Financial Solutions (BR): -2.55%
  • Microsoft (MSFT): -3.09%
  • Western Union (WU): -4.09%

Interestingly, half of my positions ended up for the day and the other half were down. The S&P 500 was down 1.11% today and the Dow closed down 128 points. However, this morning as the market was about to open it looked like things were going to be much uglier. Ben Bernanke then flew in to the rescue on his helicopter and announced a 75 basis point reduction in the federal funds rate.

I was surprised to see my Mothers Work position recover over 4% today. I’m not sure there was any real company specific news for Mothers Work. It just looks like clothing retailers in general today were up today. Maybe investors think the tax rebate being discussed on Capital Hill will spur people to by new clothes.

My biggest losers for the day were Microsoft and Western Union. I’m not seeing any major problems with either of these positions. Today’s moves are more reflective of Mr. Market’s manic depressive behavior than anything else.

I won’t be surprised if we see a few more down days this week. I’m currently 38% in cash in the Fat Pitch Financials Port, so I’m ready to swing at any fat pitches I spot in this fear driven market. In my personal portfolios, I’m pumping them up with new cash so I can be ready to pounce on great opportunities.

3 thoughts on “Fat Pitch Financials Port Weathers the Storm

  • January 23, 2008 at 1:15 am

    George, I own a significant portion of the stocks you listed. I am not sure if the performance should be celebrated. Most of them are quite beaten down in the last 3 months. If I remember correctly you added more MHP not long ago?

  • January 23, 2008 at 6:24 am

    Hi Jim, you are right that I shouldn’t be celebrating. What I was really trying to do with this post was to reflect on how the day went given all scary headlines. You are correct that I added MHP to my portfolio recently and it has not done well yet.

  • January 23, 2008 at 12:01 pm

    George, I am on the same boat as you do. Just to let you know I just moved my 401k contribution percentage from “underweight” (barely enough to enjoy all the company matching) to “equal weight” this morning and will continue to move the percentage to “overweight” through spring and summer. My thinking is the s&p500 going hit the valley first half of the year. What do you think?

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