On the first Tuesday of every month, we will screen our database for the 10 companies with the lowest price to earnings ratio (ModernGraham-style) that are suitable for the enterprising investor.Â These 10 companies will be placed in a mock portfolio and rebalanced to have a 10% allocation to each company.Â The starting value of the portfolio is $100,000.00.Â Dividends will be reinvested in the portfolio.
To see the mock portfolio, you can view this google spreadsheet.
This month, the screen resulted in the following companies being targeted:
- Chubb Corp (CB) – 9.01
- International Shipholding Inc (ISH) – 9.18
- UnitedHealth Group (UNH) – 9.31
- Psychemedics Corp (PMD) – 9.67
- Merck & Co Inc (MRK) – 10.38
- Baker Hughes Inc (BHI) – 10.78
- American Electric Power Co (AEP) – 10.79
- Garmin Ltd (GRMN) – 10.97
- Olin Corp (OLN) – 11.20
- General Dynamics Corp (GD) – 11.35
The following mock transactions were made this month:
- Received $0.15/share dividend on 400 shares of UNH for $35.10
- Sold 13 shares of UNH for $337.35, profit of 3.6%.
- Sold 22 shares of ISH for $729.30, profit of 7.6%.
- Bought 9 shares of CB for $436.68.
- Bought 241 shares of PMD for $1,303.81.
- Bought 4 shares of BHI for $168.28.
- Bought 9 shares of AEP for $271.98.
- Sold 146 shares of XOM for $10,463.82, profit of 4.5%.
- Bought 8 shares of MRK for $247.44.
- Sold 604 shares of PFE for $10,286.12, profit of 2.9%.
- Sold 176 shares of ETN for $10,639.20, profit of 6.8%.
- Bought 331 shares of GRMN for $10,016.06.
- Bought 657 shares of OLN for $10,032.39.
- Bought 160 shares of GD for $10,032.00.
During the month of October, the portfolio gained 0.32% overall, versus 0% by the DJIA, and a loss of 1.98% by the S&P 500.
Full Disclosure:Â At the time of publication, the author held a position in GRMN.
Photo provided by herval.