End of March Buylist update

Our Buylist is up 8.37%
The S and P 500 is up 12%

This is how the Losers to Winner rank.
Our Covered call portfolio is still awash in cash.  There have been no retraction to buy points
although I think all of them are a good price to purchase.  My concern is that the market will enter a point of uncertainty with the election and the summer swing. I am confident that cash is comfortable right now.

HCP	HCP Inc	Medical Facility REIT	-4.76%
RLI	RLI Corp	Insurance	-1.67%
RAVN	Raven Industries	Diversified MFG	-1.44%
PG	Procter & Gamble	Consumer Products	0.75%
NICK	Nicholas Financial	Car Loans	2.89%
BDX	Becton, Dickinson and Co.	Medical Devise Mfg.	3.92%
MO	Altria Group	Cigarettes	4.11%
KO	It's the Real Thing	Consumer Products	5.77%
AFL	AFLAC Quack Quack	Insurance	6.31%
MKC	McCormick and Co.	Consumer Products	7.95%
DF	Dean Food	Dairy Food	8.13%
SYK	Stryker Corporation	Medical Technology Co.	11.61%
GE	General Electric	MFG conglomerate	12.06%
BBBY	Bed, Bath and Beyond	Home Retail	13.46%
ORCL	Oracle	Hardware/Software	13.68%
LUK	Leucadia Nationl Corp	Banking and Finance	14.78%
KKR	Kravis, Kolberg and Roberts	Finance Barbarians	15.59%
INTC	Intel	Computer Chip Maker	15.94%
F	Ford	Automobile	15.94%
ITW	Illinois Tool Works	Diversified MFG	22.29%

Sorry about that Mr. Joshi

On 2/25/12 I submitted a post where I questioned HP hiring Meg Whitman as CEO rather than someone with vision, leadership and credibility.  I thought that they should have hired a leader from within the company who had the knowledge and experience to lead the company from the inside rather than a rock star who would use HP as a platform to their own social and financial gains.

I included a link to Yyomesh Joshi's HP page. http://www8.hp.com/us/en/company-information/executive-team/joshi.html

I choose his page because he had been with HP for 30 years and ran the IPG section which has been very successful.

I am certain the Whitman must have read my suggestion because this week she announced she was merging the printer and computer businesses and that Mr. Joshi was not going to be included in the party.
http://www.nytimes.com/2012/03/21/technology/hp-is-said-to-plan-merger-of-computer-and-printer-units.html

It is not that I think Mr. Bradley will not be a fine leader of this business group. It was just that I keep thinking of how much fun it is to watch the parade.

March 18 buy list update

Today the March Option contracts expire.
This is the update.

S and P 500  = 11.65%
Buylist = 8.35%
Option list = 7.6%

Notes:  Our buylist is performing 3% below the S and P 500.  That is ok.  Hopefully if there is a reverse in the market, our lower beta will reduce the pain.

Our option list lost BBBY, KO and MO. to being called.
We re-sold contracts for F, PG and SYK.
Currently we have $6,000,000 in cash in the account, and we have locked in $611,000 in hard profits.
This means we have 40% of the risk of the buylist for .7% less gain.
I am still expecting a drop in the market. I believe there will be a consolidation in April and it will maintain until after the election. We will buy back positions and sell calls as we retrace to our original position, unless the market looks really bad and then we will just wait.

Goldman Sachs Greece and Oil

http://www.businessweek.com/articles/2012-03-07/goldmans-dubious-deals-is-this-gods-work

There are some very interesting articles coming out regarding GS restructuring debt for Greece. I think I am going to have to read about 18 more times to understand what they did.

Also in this article is about a Kinder Morgan deal to buy El Paso.  This article should be a starting point for anyone wishing to learn more.

Today's Drop

Huge drop today.  Many of the stocks in the margin account that were called are returning to a re-entry point.