From the Dorsey Wright elves:
CREATING AN INVENTORY OF STOCKS
Sometimes the most overwhelming part of investing is wading through the myriad of stocks that trade. There are large cap, small cap, mid cap, value, growth, income, international, mutual
funds (11,000) of those, Internet, New Age, New Economy, Old Economy, this and that. It's confusing to professionals who deal with this stuff every day. That is why it is important to
have some service that helps you cut through the red tape. I often search for ideas from mutual funds. I go to our mutual fund management system and search out a fund that has had a
good track record for many years. I then pull up the chart and on the side of the chart click on fund information button. I then page down to look at the top 15 holdings for the fund. I
recently did that on the a fund named Van Kampen Comstock A Fund. Since 1968 this fund has outperformed the S&P 500 by about 1.5%. This is monumental as approximately 75% or
higher of the money managers in the world never outperform the S&P 500. This record goes back to 1968. The fund also has had the ability to do well in down markets like 2000 where it
was up 31.5%. So I was curious to see what their top 15 holdings were. By pulling up the chart ACSTX and then clicking on Fund Info. I was able to page down to those stocks. The
stocks were posted as of March 31 so the probability of any changes was limited. Hey, it's a place to start. Here is what I came up with. These 15 stocks make up about 42% of the fund so
they are definitely the favorites. Now, I see a couple of themes here. One is Oil and Oil Service, Utilities. The largest percentage position is Motorola. Now my thought process extends to
the Foliofn web site I discussed the other day. Keep in mind that firms like Prudential Securities, Solomon Smith Barney and PaineWebber have similar programs where a professional
stockbroker can create portfolios of stocks, execute them and manage them for you. So you are not left alone here. If you desire a profession al to work with just call or email us and we
know all the best brokers in your area. Ok, if you choose to manage your investment yourself you could create a "folio" on foliofn.com using the stocks below. This gives you the top 15
stocks in a fund that has a very good loooooong track record. These stocks are updated each quarter on our site so the next time they change will be the end of June. If you did this (and
you could do this in a "watch portfolio"), just a test it out for 90 days program they have, you could then manage the stocks yourself. The easy way to do that would be to put them in a
portfolio on our site and simply click the activity button each day to see if anything required your attention. This is not a recommendation to do this it is simply to show you my thought
process in searching for ideas. Ok, lets go one step further. See below portfolio.
Top Ten Equity Holdings: ACSTX
Name Symbol %Fund Trend PnF RS RSCol Momw
BP Amoco P L C BP 4.002 Pos Buy Buy O + 5
Chevron Corp CHV 3.688 Pos Buy Sell X + 4
Conoco Inc COC.A 3.489 Pos Buy Buy X + 3
Reliant Energy REI 2.739 Pos Buy Buy X + 7
Gap Inc Del GPS 2.691 Neg Buy Sell X + 4
Southern Co SO 2.587 Pos Buy Sell X - 1
Halliburton Co HAL 2.524 Pos Buy Sell X + 3
Intl Paper Co IP 2.491 Pos Buy Sell X + 4
Sara Lee Corp SLE 2.447 Pos Buy Sell X - 4
Txu Corp TXU 2.255 Pos Buy Sell X + 5
Next Five
Dow Chem Co DOW 2.202 Pos Buy Sell X + 4
Allstate Corp ALL 2.188 Pos Buy Sell X - 2
Motorola Inc MOT 2.186 Neg Buy Sell O + 4
Du Pont E I DD 2.168 Neg Sell Sell X + 4
Duke Energy Co DUK 2.108 Pos Buy Buy X + 4
Now since I found these interesting stocks in the Van Kampen Comstock A, I thought I would go to the Van Kempen web site and see what I could find there www.vankampen.com.
When you go there look down the home page and you will see Unit Trusts. Just click that section. It now brings you to their existing Unit Trusts. Ok now catch your breath. Look at the
column right in front of you called Current Unit Trusts. Click that on. That brings you to the current Unit Trusts they have out. Unit trusts are simply "Schools of Fish" with one common
theme. Now the idea is to click on the Trust you have an interest in and see what stocks they picked for the trust. They do much fundamental research to come up with these ideas. The
technical side is left up to you. Sooo, since one of the themes in the above portfolio was Oil and Oil Service, I clicked on the Global Energy portfolio to get some energy ideas. So there
they are listed below. You might then take these stocks and place them in to a DWA portfolio and begin to evaluate the group in the aggregate or separately.
Name of Securities
Ticker
Contract Drilling
Diamond Offshore
DO
*Ensco International
ESV
Rowan Companies
RDC
*Santa Fe International
SDC
Transocean SEDCO
RIG
Integrated Oil Companies
Amerada Hess
AHC
BP Amoco
BP
Chevron
CHV
Conoco
COC/A
Exxon Mobil
XOM
Phillips Petroleum
P
Royal Dutch Shell
RD
*Texaco
TX
Oil & Gas Production
Anadarko Petroleum Corp.
APC
Burlington Resource
BR
*Occidental Petroleum
OXY
Unocal Corp.
UCL
Oilfield Refining/ Marketing
*USX-Marathon Group
MRO
Oilfield Services/Equipment
Baker-Hughes
BHI
Halliburton Co.
HAL
Schlumberger
SLB
In previous series, not in current series
Canadian Pacific
CP
Devon Energy
DVN
Repsol
REP
Total Fina
TOT
*These stocks are new to Series 18
These are just some ideas on how you might begin to creatively create some inventories to work from. |
