Portfolio Progress – Week of September 24, 2007

Calendar September 24, 2007 | Posted by Jorge

I’m working on a new format for my portfolio progress that will integrate well with my blog. I’d like to have a bit more in terms of disclosure as well as some graphs and tables to help visualize my portfolio and progress. If anyone has any suggestions, please let me know.

  • Tuesday (9/18): The FOMC cut the federal funds and discount rates by a surprising 50 basis points. The market in turn shot up almost 200 points after the announcement with the DJIA closing out a 300+ point gain. Almost all stocks rallied as a result although I believe the effects would have been much greater had it not been for options expiration week. Lehman Brothers also came out with their earnings with a decrease in profits overall but beating expectations. LEH’s earnings report set the stage for the rest of the brokers for the week.
  • Wednesday (9/19): The market was still in rally mode closing up almost 100 points from the euphoria from the FOMC rate cut.
  • Thursday (9/20): Goldman Sachs came out with earnings citing an over $6 / share report, handily beating the estimated $4 / share. GS fell slightly on the news but Cramer reiterated his $300 price target for GS (although not by year’s end but in time).

Although I had turned a profit last week (and thus a special portfolio progress), I’m back in the red this week after a couple of options plays I have pending. I’m currently long Bank of America (BAC) and Level 3 (LVLT), although Level 3 appears to be in free-fall mode until it’s CFO recovers from surgery. I’m currently long EMC Oct 19 Calls with a cost basis of about $1, or $100 per contract. EMC was upgraded this morning by Bear and Citi to buys as a result of EMC’s spinoff of VMWare (VMW), which is currently trading in the mid to upper 70s.

I’ll be working on a cleaner, more colorful way of presenting my portfolio and weekly progress during the week. If I can’t get things to work out well, I’ll update my portfolio progress mid week with numbers. Good luck out there this week. Safe investing!

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