The remaining 7% cash was used to buy shares of Patni Computers, which was discussed on 8/8/2007. The expectation is that it would provide relatively stable growth with a possible acquisition at a premium by a bigger company sometime in the future. Further, because the market was down the last 2 days, there is a chance the equity will benefit from a probable technical market bounce next week. The stock was bought at 20.85.
A somewhat more risky trade was also done late in the day in the form of exchanging out of Google to buy shares of Local.com, which was also discussed briefly on 8/8/2007. The idea here is to sell the “shark” at a profit during the short-term bear market (hopefully!), while buying a “small fish” in the same area at a large discount. Google is off about 8% from its peak while Local.com is down about 75%. The peak in Local.com was following the announcement July 2nd about receiving a patent - the press release had especially powerful language from management that included a claim that they could block out their competition in mobile search. The hype was probably the reason for a 50% hike in the stock price in one day. On the other hand, on a valuation basis, the stock looks cheap at $50 million enterprise value. Google was sold at 515.99 (1% short-term gain in the portfolio) and Local.com bought at 5.47. The YTD realized gain in the portfolio stands at a modest 2%. The portfolio also has a yield of 4% largely helped by the three Canadian energy trust holdings, which enjoy very high yield.
A somewhat more risky trade was also done late in the day in the form of exchanging out of Google to buy shares of Local.com, which was also discussed briefly on 8/8/2007. The idea here is to sell the “shark” at a profit during the short-term bear market (hopefully!), while buying a “small fish” in the same area at a large discount. Google is off about 8% from its peak while Local.com is down about 75%. The peak in Local.com was following the announcement July 2nd about receiving a patent - the press release had especially powerful language from management that included a claim that they could block out their competition in mobile search. The hype was probably the reason for a 50% hike in the stock price in one day. On the other hand, on a valuation basis, the stock looks cheap at $50 million enterprise value. Google was sold at 515.99 (1% short-term gain in the portfolio) and Local.com bought at 5.47. The YTD realized gain in the portfolio stands at a modest 2%. The portfolio also has a yield of 4% largely helped by the three Canadian energy trust holdings, which enjoy very high yield.
The current holdings and associated stats is below:
| Stock | Purchase Price | Date | % Invested | Yield | Current Price | Return |
| MO | 46.54 | 1/4/2005 | 10 | 4 | 69.6 | 49.55 |
| KFT | 21.11 | 1/4/2005 | 3.5 | 3.1 | 32.63 | 54.3 |
| PCL | 35.5 | 5/12/2005 | 9 | 4.2 | 42.2 | 19.2 |
| PFE | 25.15 | 2/6/2006 | 8.5 | 4.8 | 24 | (3) |
| IBN | 27.57 | 5/18/2006 | 10 | 1.15 | 44 | 60 |
| TSM | 8.71 | 7/27/2006 | 7.5 | 3.6 | 10.27 | 18 |
| PTR | 106 | 9/12/2006 | 9 | 2.9 | 140 | 32 |
| HTE | 23.46 | 11/2/2006 | 8.5 | 16 | 28 | 21 |
| CNE | 13.95 | 11/2/2006 | 8 | 16 | 14.5 | 2.5 |
| AAV | 11.22 | 11/2/2006 | 5 | 15 | 12.1 | 7.9 |
| STP | 36.73 | 3/14/2007 | 6 | None | 42.5 | 16 |
| CEE | 51.5 | 6/28/2007 | 7.5 | 3.5 | 54 | 5 |
| PTI | 20.85 | 8/10/2007 | 7.5 | None | 20.99 | 0 |
| LOCM | 5.47 | 8/10/2007 | 5.7 | None | 5.48 | 0 |
| Cash | - | - | 1.3 | - | - | - |
The list of stock sales and the gain/losses for the year are listed below:
| Stock | Buy Date | Price | Sell Date | Price | % Gain (Loss) |
| Harrah’s (HET) | 75.61 | 10/2/2006 | 83.68 | 8/7/2007 | 10% |
| St. Joe (JOE) | 39.4 | 8/7/2007 | 41.8 | 8/8/2007 | 6% |
| Google (GOOG) | 441 | 3/14/2007 | 515.99 | 8/10/2007 | 17% |
| Overall Portfolio Gain/(Loss) YTD | - | - | - | - | 2% |
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