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Portfolios

Review of Defensive Low PE Portfolio

This portfolio is made up of the 15 defensive 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 will 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 the list of Defensive Low PE stocks on a weekly basis.  The portfolio will continue to be rebalanced once a month, but the actual list will be posted every week.

Here is this week’s list of Defensive Low PE stocks:

TOA TECHNICAL OLYMPIC
SPF STANDARD PACIFIC
OFG ORIENTAL FINANCIAL
MHO M/I HOMES, INC.
MDC M.D.C. HOLDINGS, INC
ASH ASHLAND INC
HOV HOVNANIAN ENTERPRISE
DLX DELUXE CORPORATION
FBP FIRST BANCORP
CTX CENTEX CORP
OSG OVERSEAS SHIPHOLDING
STTX STEEL TECHNOLOGIES
KBH KB HOME
RYL RYLAND GROUP, INC
MTH MERITAGE HOMES CORP

There were a number of transaction this time as we updated our formulas and reinvested some dividends.

This portfolio outperformed the Dow and S&P500 indexes during the period and has done so overall.

The snapshot:

Ticker Total Cost Current Value % Gain/Loss
ASH $7,532.50 $7,918.90 5.13%
CTX $7,578.90 $7,569.45 -0.12%
DLX $7,576.20 $7,567.05 -0.12%
FBP $7,784.35 $7,776.30 -0.10%
HOV $7,509.60 $7,499.10 -0.14%
KBH $6,615.98 $8,038.25 21.50%
MDC $6,581.70 $8,484.79 28.91%
MHO $7,767.45 $7,757.20 -0.13%
MTH $7,638.40 $7,628.80 -0.13%
OFG $7,772.00 $7,760.40 -0.15%
OSG $7,445.00 $7,435.00 -0.13%
RYL $6,454.10 $8,687.28 34.60%
SPF $6,534.41 $7,493.59 14.68%
STTX $7,799.40 $7,791.00 -0.11%
TOA $7,808.50 $7,800.45 -0.10%
Cash   $209.78  
Realized   $10,613.48  
       
Total $100,000.00 $117,417.34 17.42%

Performance:

  10/27/06 12/15/06 Change Overall
S&P 1389.08 1425.49 2.62% 12.08%
Dow 12163.66 12416.76 2.08% 11.62%
Portfolio 110121.12 117417.34 6.63% 17.42%

Neither of us holds a position in any of these stocks.  Please review our disclaimer and Our Methods.

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