Review of Defensive Low PE Portfolio
This portfolio is made up of the 15 enterprising stocks that are trading at the lowest PE Ratio. The first week of each month we will review the list, and make any trades necessary to get the portfolio to match the list. Every week we examine the portfolio’s performance against the S&P 500 and Dow Jones Industrial Average, and reinvest any dividends. The list of defensive stocks is made by following modernized Benjamin Graham strategies, and PE Ratio is calculated using an average of the previous 5 years’ earnings per share (EPS).
We have decided to provide our list of Enterprising Low PE companies on a weekly basis. The portfolio will continue to be rebalanced once a month, but the list will be updated every week.
Here is this week’s list of Enterprising Low PE companies:
| BZH | BEAZER HOMES USA INC |
| TOA | TECHNICAL OLYMPIC |
| HOV | HOVNANIAN ENTERPRISE |
| BMHC | BUILDING MATERIALS |
| MHO | M/I HOMES, INC. |
| BHS | BROOKFIELD HOMES |
| CMC | COMMERCIAL METALS CO |
| CTX | CENTEX CORPORATION |
| NX | QUANEX CORPORATION |
| WCI | WCI COMMUNITIES INC |
| ESCA | ESCALADE, INC |
| WON | WESTWOOD ONE INC |
| PCU | SOUTHERN COPPER CORP |
| HOFT | HOOKER FURNITURE |
| SAFM | SANDERSON FARMS INC |
There were a number of transactions this week as we rebalanced the portfolio. We sold Avis Budget Group (CAR – previously CD) for $7382.63 at a gain of about 13.5%, Cost Plus Inc (CPWM) for $7591.20 at a gain of about 12.75%, Huttig Building Products Inc (HBP) for $7779.50 at a gain of about 16%, John B. Sanfilippo & Sons (JBSS) for $7000.80 at a loss of about 13.5%, Startek Inc (SRT) for $7058.15 at a gain of about 9%, and Tuesday Morning Corp (TUES) for $7485.00 at a gain of about 15%.
We bought Building Materials Holding Corp (BMHC) for $7529.55, Commercial Metals Co (CMC) for $7465.00, Quanex Corp (NX) for $7484.95, Escalade Inc (ESCA) for $7484.95, Southern Copper Corp (PCU) for $7550.50, and Hooker Furniture Corp (HOFT) for $7526.80.
The portfolio matched the performance of both the DJIA and S&P 500 this week, and has significantly outperformed them both overall.
The snapshot:
|
Ticker |
Total Cost |
Current Value |
% Gain/Loss |
| BHS | $6,533.00 | $8,335.25 | 27.59% |
| BMHC | $7,529.55 | $7,519.55 | -0.13% |
| BZH | $7,348.55 | $7,106.40 | -3.30% |
| CMC | $7,465.00 | $7,455.00 | -0.13% |
| CTX | $6,436.00 | $7,195.50 | 11.80% |
| ESCA | $7,484.95 | $7,474.95 | -0.13% |
| HOFT | $7,526.80 | $7,516.80 | -0.13% |
| HOV | $6,440.00 | $7,470.00 | 15.99% |
| MHO | $6,565.90 | $7,412.80 | 12.90% |
| NX | $7,484.95 | $7,474.95 | -0.13% |
| PCU | $7,550.50 | $7,540.50 | -0.13% |
| SAFM | $6,478.65 | $8,742.35 | 34.94% |
| TOA | $6,496.00 | $5,968.50 | -8.12% |
| WCI | $6,470.00 | $6,902.00 | 6.68% |
| WON | $6,517.50 | $6,707.00 | 2.91% |
| CASH | $819.13 | ||
| Realized | $5,146.48 | ||
| Total | $100,000.00 | $111,640.68 | 11.64% |
Performance:
|
Last Week |
This week |
Change |
Overall |
|
| S&P | 1339.15 | 1353.22 | 1.05% | 6.40% |
| Dow | 11718.45 | 11866.69 | 1.27% | 6.67% |
| Portfolio | 110463.50 | 111640.68 | 1.07% | 11.64% |
Neither of us holds a position in any of these stocks. Please review our disclaimer and Our Methods.
