Wrote Nov 7.5 Covered Calls on Taiwan Semiconductor Shares (TSM)

As noted in our previous post, we are aggressively selling in-the-money or near-the-money near-term covered calls on some of our defensive holdings. Today, as the market rallied, we sold covered calls on our Taiwan Semiconductor (TSM) shares – Nov 7.5 at $1 (TSMKU). The expectation is that one or more of these will get called away thereby allowing us to raise cash to cover some or all of our margin position. If they do not get called away, we will continue to write the same type of covered calls after November 15. The idea is to tilt the portfolio more towards growth-oriented investments as the market bottoms.

Below is our updated portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	19.19	4.78	15.01	0.14
Philip Morris International (PM)	1/4/2005	32.19	43.47	6.62	35.03	0.15
Kraft Foods (KFT)	Various	24.03	29.18	4.84	21.41	0.10
Plum Creek Timber (PCL) – Call Value	5/12/2005	35.5	35	8.72	(1.42)	0.20
Pfizer (PFE)	Various	24.37	17.71	7.35	(27.32)	0.27
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	28.30	17.32	7.19	(31.48)	0.05
Taiwan Semi (TSM)	7/27/2006	8.71	7.50	6.23	(13.77)	0.12
Advantage Energy Fund (AAV)	11/2/2006	11.22	6.15	3.32	(45.17)	0.23
SunTech Power (STP)	3/14/2007	36.73	17.50	2.91	(52.35)	None
Central Europe & Russia Fund (CEE)	Various	51.03	19	5.52	(51.56)	0.65
Patni Computers (PTI)	8/10/2007	20.85	5.80	2.41	(72.70)	0.16
Itron Inc. (ITRI)	11/07/2007	85.01	48.48	4.02	(43.04)	None
Anthracite (AHR)	11/09/2007	7.97	4.34	3.60	(45.54)	0.32
ClickSoftware (CKSW)	11/09/2007	4.61	2.90	2.41	(37.09)	None
Harvest Energy (HTE)	11/28/2007	21.01	9.80	3.25	(53.37)	0.30
iRobot (IRBT)	12/18/2007	18.65	10.32	3.43	(44.19)	None
MCG Capital (MCGC)	Various	10.86	0.82	0.54	(92.45)	None
LDK Solar (LDK)	01/22/2008	30.49	18.19	4.53	(40.35)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.11	2.05	(74.29)	0.07
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	7.07	4.70	(40.22)	0.10
TD Ameritrade (AMTD)	05/21/2008	17.68	13.29	4.41	(24.85)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	10.49	2.18	(75.09)	None
Costco (COST)	08/01/2008	62.28	57.07	4.73	(8.46)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	31.80	3.96	(13.93)	0.69
DryShips Incorporated (DRYS)	10/09/2008	19.30	19.25	4.79	(0.27)	0.12
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	13.60	3.39	18.54	0.08
Cash				(12.48)
Total Portfolio					(38.72)	3.58

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Plum Creek Timber (PCL), we wrote covered calls for 2008 November 35 on 10/28/2008 at $2.75.
• For Taiwan Semiconductors (TSM), we wrote covered calls for 2008 November 7.5 on 10/31/2008 at $1.0.

Added to ICICI Bank (IBN), Central Europe & Russia Fund (CEE), Wrote Covered Calls on Plum Creek Timber (PCL)

We went a little bit more on margin to purchase about one-third more shares of ICICI Bank (IBN) at $13.16 per share and about 40% more Central Europe & Russia Fund (CEE) at $14.84 per share. Our existing holding in both of these holdings got crushed during this emerging market correction but the valuation has become compelling. We also went aggressive and wrote near-the-money covered calls on our Plum Creek Timber (PCL) holdings (Nov 35 at $2.75). Plum Creek Timber is a very good defensive holding for any portfolio but with valuations across the board at compelling levels, it makes less sense to hold on to defensive names. We will use the same strategy with other defensive names in the portfolio if this rebound continues.

Below is our updated portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	19.53	5.31	17.05	0.14
Philip Morris International (PM)	1/4/2005	32.19	42.58	6.94	32.27	0.15
Kraft Foods (KFT)	Various	24.03	28.88	5.24	20.16	0.10
Plum Creek Timber (PCL) – Call Value	5/12/2005	35.5	35	9.52	(1.42)	0.20
Pfizer (PFE)	Various	24.37	17.82	8.08	(26.87)	0.27
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	28.30	14.81	6.72	(41.41)	0.04
Taiwan Semi (TSM)	7/27/2006	8.71	7.77	7.05	(10.68)	0.12
Advantage Energy Fund (AAV)	11/2/2006	11.22	5.67	3.34	(49.49)	0.21
SunTech Power (STP)	3/14/2007	36.73	13.25	2.40	(63.92)	None
Central Europe & Russia Fund (CEE)	Various	51.03	16.72	5.31	(57.37)	0.57
Patni Computers (PTI)	8/10/2007	20.85	5.50	2.49	(73.24)	0.15
Itron Inc. (ITRI)	11/07/2007	85.01	47.53	4.31	(44.15)	None
Anthracite (AHR)	11/09/2007	7.97	3.07	2.78	(61.48)	0.23
ClickSoftware (CKSW)	11/09/2007	4.61	2.41	2.19	(47.72)	None
Harvest Energy (HTE)	11/28/2007	21.01	8	2.90	(61.93)	0.24
iRobot (IRBT)	12/18/2007	18.65	11.31	4.10	(38.84)	None
MCG Capital (MCGC)	Various	10.86	0.66	0.48	(93.92)	0.04
LDK Solar (LDK)	01/22/2008	30.49	15.86	4.32	(47.99)	None
Aegon N.V. (AEG)	04/28/2008	15.99	4.32	2.35	(72.98)	0.08
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	7.10	5.15	(39.97)	0.10
TD Ameritrade (AMTD)	05/21/2008	17.68	11.93	4.33	(32.54)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	10.20	2.31	(75.78)	None
Costco (COST)	08/01/2008	62.28	57.48	5.21	(7.71)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	28.50	3.88	(22.86)	0.61
DryShips Incorporated (DRYS)	10/09/2008	19.30	14.05	3.82	(27.21)	0.08
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	12.93	3.52	12.70	0.07
Cash				(14.86)
Total Portfolio					(43.53)	3.22

• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Plum Creek Timber (PCL), we wrote covered calls for 2008 November 35 on 10/28/2008 at $2.75.

Yamaha Digital Pianos – An Introduction to Different Models (YPG, DGX, P, N, NP, CP, Arius, YDP, Clavinova CLP & CVP, and MODUS)

Yamaha has a cosmic selection of digital pianos on offer. At last check, digital piano count was pushing 200 and that is exclusive of discontinued models, still available at retail locations.

Yamaha classifies the different models into the following categories:

1. Portable Grand Piano Series Keyboards (YPG and DGX-series): These are projected as the flagship product of the Yamaha Keyboard line. Available at the upper-end of this spectrum are the connectivity, digital technologies, and acoustic piano simulation capabilities lacking in many of the higher-end digital piano models. They range in price between $400 and $1000.
   
2. Contemporary Pianos (P, N, and NP-series): These are portable digital pianos and are at the rear end in Yamaha’s digital piano line. They come with a removable stand (some models optional) and range in price between $500 and $1000.
   
3. Professional Stage Pianos (CP-series): These are portable digital pianos in the high-end of the portable line. Introduced 32 years ago as the “electric grands” they were an instant hit because of their authentic sound and live performance convenience. They range in price between $1200 and $2200.
   
4. Home Pianos (ARIUS and YDP-series): These are Yamaha’s low-end alternatives to an acoustic console piano. While not portable, in appearance they are comparable to spinets and sport a feel closer to an acoustic console piano. On the average, they weigh below 100 pounds as opposed to upwards of 500 pounds for an acoustic console piano. The ARIUS series has turned out to be a good retail alternative to the Clavinova and MODUS models that are sold through dealers only in the US. The YDP model numbers without the ARIUS prefix are older models. They range in price between $800 and $1370. There is also the Nocturne N100 which comes in a sleek cabinet but otherwise similar to the YDP series that sells for over $2000.
   
5. Clavinova Traditional Pianos (CLP-series): The popular CLP series rule the roost as the gold standard of digital pianos. Weighing between 100 and 200 pounds, they are preferred over an acoustic piano by many homes and institutions (schools, colleges, and universities). There are a large number of CLP series Clavinova models designed to fit most of the mid to high-end digital piano market with pricing ranging from $1500 for a no-frills CLP220 to $8000 for a loaded version (CLP295GP) that even has the looks of a grand piano.
   
6. Clavinova Ensemble Pianos (CVP-series): With several bells and whistles, these are the high-end of the Clavinova’s. Features for musicians and composers include multi-track recording (16 or more), USB audio recorder, karaoke plug-in, speakers with subwoofers, etc. They weigh upwards of 200 pounds. These range in price between $3000 and $10000. There is also a version called the CGP1000 that is in the same mold as the CVP series but comes in a designer grand-piano cabinet. That version sells for $20000, a whopping $10000 premium to the high-end CVP series model CVP-409.
   
7. Designer Pianos (MODUS-series): These are digital pianos that are lower in features compared to the high-end of the Clavinova’s but with designer (luxury) looks. They have a higher price-point than most Clavinovas and range between $6000 and $12000.

The array of choices makes it a necessity to classify the different models into separate groups. Confusion is the name of the game as features overlap within the same grouping and across categories.

Features available in Yamaha digital pianos:

Technology	Details	Good	Better	Best
Key Action Technology	The technology used to make the keys feel like an acoustic piano* – the harder you play, the louder and brighter the sound becomes.	Graded Soft Touch (GST) – No Weighted Action – lighter and so more portable. Uses padding thickness to simulate weighted action.	Graded Hammer Standard (GHS) – Use weighted metal hammers with scaled weight sizes to achieve graded weighted key action.	Graded Hammer Effect (GHE) – Quieter Mechanism, Greater Sensitivity, More Responsive. There is a variation called the GH3 which is considered the very best.
Voice Architecture Technology	The technology used to simulate all the subtle voices that come out of an acoustic piano.	Half Damper Effect – Recreation of different pedaling sustains (half, vs full)	Dynamic Stereo Sampling – technology that uses multiple stereo recording per key to recreate ways each key is played, Stereo Sustain Samples – open strings ringing recreation during sustain pedaling, and Key-off samples – Recreation of the subtle sound produced when dampers rest on strings during release.	String Resonance – Recreation of upper notes string resonance.
Polyphony	Measure of the quantity of samples the tone generator can play at any given moment.	32-64	96-128	128+
Recording	Allows the user to create ones own songs. More tracks allow incorporation of more instruments and effects to create original sound.	1	2	16
USB Audio Recorder	Lets you record your songs as audio data directly to a USB storage device.
Computer Connectivity		LAN/MIDI – The most basic PC connection option	USB – Allows high-speed MIDI data transfer over USB cable.	IDC – Internet Direct Connection – Allows direct connection to the internet so as to allow buying and downloading songs, performances, etc.
Song Storage	Internal Flash Memory, Smart Media, and USB to device options.
iAFC	Real-time automatic adjustments that attempts to match the sound to the acoustic characteristics of the room you are playing in.
Karaoke (Vocal Harmony)	Microphone interface, auto backup vocals, and keyboard play along.
Guide Lamps	Learning tool – LEDs that light up the keys to play on the left and/or right hand notes.
Performance Assistant	Auto Embellishment of the notes based on the chords you are playing.
Moving Keys	Player piano feature. It plays on its own using the built-in library, MIDI files, or data streams over the Internet.
Keys	Materials and Technology used to make the keys.	GH -weighted key variations for acoustic piano feel.	GH3 – weighted gradations with a damper mechanism and two velocity sensors	Natural Wood/Ivory – features of GH3 plus Natural Wood or synthetic ivory material – Durability is greatly improved with the natural wood alternative.
MIDI Compatibility	Standards used when downloading MIDI music files or sharing with others	GM/XG Lite – General MIDI 1 compatibility. XG is a Yamaha standard used widely.	GM2/XG – Yamaha extensions to General MIDI 1 which allows increase of the number of sounds and editing.	SFF – Allows adding more accompaniment styles to the instrument.
Display Type		LCD	Score/Lyrics Display	Color LCD
Music Finder	Tempo, voices, accompaniments and other effects set automatically to help you reproduce the sounds of your favorite songs.
Voices	Technologies that automatically adjusts the sound based on what you are playing.	Portable Grand – reproduction of a high quality stereo recording from a real grand piano.	Mega Voice – brings realism to accompaniments	Super Articulation – Intelligently adds expressiveness to your performances.
Tuning	Lets you make fine adjustments to the pitch, allowing you to accurately match the tuning of your keyboard with that of other instruments.
Transpose	Make it possible to shift the pitch of the keyboard or song data in semitone units, allowing you to match the pitch of the keyboard to the range of other instruments or singers.
Metronome	Helps you learn to keep a steady speed while playing (i.e. playing "in tempo").

• *Accoustic pianos have different sized strings for each key – thicker at the base end that becoming progressively thinner. Likewise, the hammers are larger in the lower range and smaller in the higher range.

A note on pricing:

In general, consumers stand to benefit on pianos that can be purchased online or through national retailers as margins are lower. In the USA, only Yamaha’s portable piano models and the ARIUS/YDP home piano models are available both online and through retailers and hence offer the best value for money.

Yamaha has issued a warning about Internet sales that explicitly states Clavinova’s cannot be purchased online in the US making the dealer the only option for a new one. Further for Clavinova and MODUS, Yamaha policies require dealers not to disclose pricing over the phone and restrict sales to their local area. All these, along with the absence of manufacturer’s suggested retail price (MSRP) in Yamaha’s music sites contribute to prices varying significantly between dealers. Consumers considering purchase of one of these piano models need to self-educate on the price ranges and be in a better position when negotiating with the local dealer. One option is to look at sites outside the USA where Yamaha has a different policy. In Europe and other areas, Yamaha’s dealer-only policy does not apply, making the pricing details much more clear and available. In the comparison spreadsheets below, we include both the list price and the best price online – for Clavinova and MODUS, these prices are based on what these go for outside the US.

Summary:

We chose the Yamaha P65 (current model is Yamaha P85) a few years ago - our decision was based on the most economical Yamaha we could find that covered the baseline features. More recently, we purchased a Kawai K15 and owning both has worked out well so far as we have two young kids learning piano and the practice times inevitably overlap.

Yamaha is the premium brand in digital pianos, but it might be worthwhile to checkout the options, pricing, and quality of other brands in the digital piano arena – mainly Kawai, Korg, Roland, and Casio. Please click for a cross-brand comparative review of the best digital pianos.

Also, check out the portable & home piano options in Yamaha and other brands in our related reviews below.

Related Posts:

1. Best Values in Digital Pianos (Portable) - A Comparative Review.
2. Best Values in Digital Pianos (Home - Non Portable) - A Comparative Review.
3. Digital Pianos (Yamaha, Casio, Roland, Kawai, Korg) - An introduction for Digital Piano Shoppers.
4. Best Values in Yamaha Digital Pianos (Portable) - A Comparative Review.
5. Best Values in Yamaha Digital Pianos (Home - Non Portable) - A Comparative Review.
6. Yamaha Digital Pianos - An Introduction to Different Models.
7. Acoustic Piano (Yamaha M-460, Cable Nelson Yamaha CN-116, Kawai K-15, etc.) - Review, Best Values, Pricing, & Shopping Experience.
8. Yamaha P65 & P70 Digital Piano Review.
9. Teach your kids Piano with learn piano online for free – well, almost!!

Last Updated: 03/2012.

Covered Calls Expiry and Closing: Taiwan Semi (TSMJV), Suntech Power (STPLJ) and Plum Creek Timber (PCLKJ)

Our October 12.5 covered calls on Taiwan Semi (TSMJV) expired worthless. Also, we closed our December 50 covered calls on Suntech Power (STPLJ) and the November 50 covered calls on Plum Creek Timber (PCLKJ). The options netted a gain of about 5%, 13% and 14% against our Taiwan Semi, Suntech Power, and Plum Creek Timber shares respectively. We are showing a gain of just fewer than 4% for the year on our transactions. We will look into liquidating some of our shares before the end of the year to realize capital losses for tax purposes as the portfolio overall is well in the red – it is a question of deciding which ones to liquidate and in what manner (selling outright as opposed to writing near-the-money options and liquidating through automatic option exercise or selling after expiry).

The list of stocks/options sold during the year and the gain/losses are listed below:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
LDK Solar (LDK)	11/21/2007	30.30	01/08/2008	40.83	34.75	2.64
Fannie Mae (FNM)	02/15/2008	30.70	03/10/2008	19.82	(35.44)	(2.18)
Navteq Inc.(NVT)	03/11/2008	73.32	03/12/2008	72.15	(1.62)	(0.06)
Suntech March 45 Call (STPCI)	10/15/2007	NA	03/22/2008	NA	NA	0.50
LDK Solar March 40 Call (LDKCH)	02/13/2008	NA	03/22/2008	NA	NA	0.44
Taiwan Semi April 12.5 Call (TSMDV)	10/18/2007	NA	04/20/2008	NA	NA	0.1664
Cypress Semi April 27 Call (CYDB)	04/04/2008	NA	04/20/2008	NA	NA	0.2137
Cypress Semi (CY)	04/02/2008	24.89	04/20/2008	26.95	8.26	0.4113
EMC Corporation May 16 (EMCEQ) Call	04/23/2008	NA	05/17/2008	NA	NA	0.1639
EMC Corporation (EMC)	04/08/2008	15.00	05/17/2008	15.97	6.48	0.2915
Suntech June 45 Call (STPFI)	04/01/2008	NA	06/05/2008	NA	NA	0.3538
Taiwan Semi Oct 12.5 Call (TSMJV)	04/21/2008	NA	10/18/2008	NA	NA	0.2061
Plum Creek Timber Nov 50 Call (PCLKJ)	06/03/2008	NA	10/21/2008	NA	NA	0.2028
Suntech Power Dec 50 Call (STPLJ)	06/06/2008	NA	10/21/2008	NA	NA	0.4656
Realized Gain/(Loss) YTD	-	-	-	-	-	3.6698

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.

More Asset Allocation Adjustments to Retirement Portfolio

The market capitulated another 15% in the last four trading days and that has forced us to reallocate our 401K portfolio again to keep our target allocation roughly at 40-40-20. Below is our portfolio after the adjustments to move about 3% out of bonds back into stocks:

Symbol	% of Portfolio	Fund Fees	Fund Return 2008 (After Fees)	Comments
Dodge & Cox Stock Fund (DODGX)	6.45	0.52	(44.45)	A Large cap value fund with a history of outperforming the S&P500 index. Has very low turnover ratio. The fund is very big (~70B) and so outperformance may be harder to come by going forward.
Fidelity Diversified International Fund (FDIVX)	19.01	0.97	(45.79)	Diversified large-cap international growth fund. This fund is very big at over 58B. Turnover is at 58%. Has a history of outperforming its related index, the MSCI EAFE.
American Beacon Small Cap Value (AVPAX)	4.95	1.06	(30.72)	A Small-cap value fund with about 1.2B of total assets under management. Turnover at 48%.
Hotchkis & Wiley Mid-cap Value (HWMIX)	2.38	1.02	(43.58)	A mid-cap value fund with about 2.4B of total assets under management. Turnover at 45%.Top 10 holdings account for 38% of assets.
Vanguard Institutional Index Fund (VINIX)	2.75	0.05	(37.70)	Attempts to replicate S&P500 index performance.
PIMCO Total Return Fund (PTTRX)	13.55	0.45	(1.74)	None.
Artisan Mid-cap Value (ARTMX)	2.64	1.22	(40.14)	None.
Fidelity Small Cap Stock Fund (FSLCX)	4.70	1.08	(40.42)	None.
Fidelity Low Priced Stock Fund (FLPSX)	3.18	1.08	(37.62)	None.
Calomos Growth A (CVGRX)	1.44	1.44	(46.89)	A 12B large cap growth fund. The top 10 holdings represent about 27% of assets.
Schwab S&P500 Index (SWPIX)	1.41	0.36	(37.60)	An index fund that tracks the performance of the S&P500 index benchmark.
William Blair International Growth (WBIGX)	1.36	1.67	(50.96)	A 5B large cap international fund with between 10 and 25% exposure to emerging markets.
Vanguard Index Trust 500 Index (VFINX)	6.81	0.18	(37.73)	An index fund that tracks the performance of the S&P500 index benchmark.
Vanguard Pacific Stock Index (VPACX)	6.50	0.27	(41.90)	An index fund that tracks the performance of the MSCI Pacific index benchmark.
Vanguard Inflation Protected Securities (VIPSX)	2.47	0.20	(2.79)	Invests in inflation indexed bonds (primarily US) with maturities between 7 and 20 years.
Vanguard Long-Term Bond Index (VBLTX)	0.74	0.18	(6.39)	An index fund that tracks the performance of a market-weighted bond index with a long-term dollar-weighted average maturity.
Vanguard Emerging Market ETF (VWO)	6.44	0.25	(52.44)	None.
Fidelity International Real Estate Stock Fund (FIREX)	1.00	0.96	(50.37)	None.
Fidelity Small Cap Growth Fund (FCPGX)	3.80	1.09	(43.16)	None.
Fidelity Select Technology (FSPTX)	1.63	0.88	(46.25)	A sector specific fund focused on large cap technology stocks with about 2B in assets under management. Top 10 holdings account for 45% of total assets.
Fidelity Select Health Care (FSPHX)	2.31	0.87	(35.14)	A sector specific fund focused on large cap healthcare stocks with about 2B in assets under management. Top 10 holdings account for 38% of total assets.
Pension Plan	4.38	0	3.70	Company Fully Vested Cash Balance Pension Plan.
Cash and Money Market	0.10	0	0	None.

The total returns YTD as of 07/31/2008 were –33.5%. The performance compare well with the returns of popular domestic indices as many of the indices are down around 40%. We reduced risk by opting for a 40-40-20 allocations among Domestic, International, and Bonds/Alternatives in the beginning of the year as compared to a 100% domestic stock portfolio and that accounts for the better performance in the down market.

Related Posts:

1. 401K/IRA Account 2007 Performance Summary - 01/08.
2. 401K/IRA Account – Asset Allocation for 2008 – Part 1.
3. 401K/IRA Account – Asset Allocation for 2008 – Part 2.
4. Retirement Portfolio – Mid Year Update.
5. Asset Allocation Adjustments to Retirement Portfolio in the face of market correction – 10/08.
6. 401K/IRA/Retirement Account 2008 Performance Summary - 01/09.
7. 401K/IRA/Retirement Account 2009 Reallocations - 01/09.

Added Companhia Siderurgica Nacional (SID)

We went about 4% more on margin to purchase shares of Companhia Siderurgica Nacional (SID) at $11.47 per share. Companhia Siderurgica Nacional is a Brazilian integrated steel producer. The purchase gives the portfolio further geographical diversification (Brazil) along with a foothold into metals/commodities sector. Again, the market correction has resulted in bargain valuation in many companies – as mentioned previously, we generally do not purchase shares on margin and expect to either infuse more cash into the portfolio or free up some cash by selling other positions later this year or early next year.

Below is our updated portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	17.16	4.37	2.85	0.12
Philip Morris International (PM)	1/4/2005	32.19	39.74	6.17	23.44	0.14
Kraft Foods (KFT)	Various	24.03	27.25	4.62	13.38	0.09
Plum Creek Timber (PCL)	5/12/2005	35.5	45.52	11.58	28.21	0.26
Pfizer (PFE)	Various	24.37	15.14	6.42	(37.87)	0.23
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	28.30	13.85	4.70	(51.07)	0.03
Taiwan Semi (TSM)	7/27/2006	8.71	8.32	7.06	(4.30)	0.13
Advantage Energy Fund (AAV)	11/2/2006	11.22	4.99	2.75	(55.54)	0.18
SunTech Power (STP)	3/14/2007	36.73	21.90	3.71	(40.37)	None
Central Europe & Russia Fund (CEE)	Various	51.03	22.10	4.69	(54.88)	0.54
Patni Computers (PTI)	8/10/2007	20.85	6.20	2.63	(70.29)	0.02
Itron Inc. (ITRI)	11/07/2007	85.01	71.25	6.04	(16.28)	None
Anthracite (AHR)	11/09/2007	7.97	2.64	2.24	(66.88)	0.20
ClickSoftware (CKSW)	11/09/2007	4.61	2.45	2.07	(46.93)	None
Harvest Energy (HTE)	11/28/2007	21.01	8.09	2.74	(61.50)	0.25
iRobot (IRBT)	12/18/2007	18.65	12.42	4.21	(32.83)	None
MCG Capital (MCGC)	Various	10.86	1.26	0.85	(88.40)	0.09
LDK Solar (LDK)	01/22/2008	30.49	19.06	4.85	(37.49)	None
Aegon N.V. (AEG)	04/28/2008	15.99	5.02	2.55	(68.60)	0.09
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	6.54	4.44	(44.70)	0.09
TD Ameritrade (AMTD)	05/21/2008	17.68	13.12	4.45	(25.81)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	11.72	2.48	(72.17)	None
Costco (COST)	08/01/2008	62.28	53.90	4.57	(13.45)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	31.03	3.95	(16.01)	0.67
DryShips Incorporated (DRYS)	10/09/2008	19.30	17.84	4.54	(7.56)	0.11
Companhia Siderurgica Nacional (SID)	10/10/2008	11.47	11.64	2.96	1.46	0.07
Cash				(12.22)
Total Portfolio					(39.34)	3.24

• For SunTech Power (STP), we wrote covered calls for 2008 Dec 50 on 06/06/2008 at $5.20.
• For Taiwan Semi (TSM), we wrote covered calls for 2008 October 12.5 on 4/21/2008 at $0.45.
• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Plum Creek Timber (PCL), we wrote covered calls for 2008 November 50 on 06/03/2008 at $1.70.

Added DryShips Incorporated (DRYS)

During the market correction yesterday, we went about 5% more on margin to purchase shares of DryShips Incorporated (DRYS) at $19.30 per share. As one of the largest dry bulk carriers, DryShips owns a fleet of 54 dry bulk carriers. They also own 6 UDW drilling units through their subsidiary Primelead, which is expected to be spun-off within the next six months. The company took advantage of the spot market as the BDI increased between 2006 and 2008, but shifted to fixed rate contracts as the year progressed. At this point 61% of the vessels have an average remaining term of 5 years. The BDI index has plummeted but the fixed contracts should limit the decrease in cash flow. We wrote about our missed opportunity with DryShips in 2005 when the stock was hovering in the teens, but the market correction has essentially given us another opportunity.

Below is our updated portfolio:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of BOY Portfolio Value Plus Deposits
Altria (MO)	Various	16.69	17.38	4.46	4.16	0.13
Philip Morris International (PM)	1/4/2005	32.19	39	6.09	21.15	0.13
Kraft Foods (KFT)	Various	24.03	27.70	4.74	15.25	0.09
Plum Creek Timber (PCL)	5/12/2005	35.5	40.62	10.43	14.41	0.23
Pfizer (PFE)	Various	24.37	15.67	6.71	(35.69)	0.24
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	28.30	17.35	5.94	(38.70)	0.04
Taiwan Semi (TSM)	7/27/2006	8.71	7.61	6.51	(12.53)	0.12
Advantage Energy Fund (AAV)	11/2/2006	11.22	5.4	3	(51.89)	0.20
SunTech Power (STP)	3/14/2007	36.73	23.88	4	(36.34)	None
Central Europe & Russia Fund (CEE)	Various	51.03	22.02	4.71	(55.04)	0.55
Patni Computers (PTI)	8/10/2007	20.85	6.20	2.65	(70.29)	0.17
Itron Inc. (ITRI)	11/07/2007	85.01	71.13	6.09	(16.43)	None
Anthracite (AHR)	11/09/2007	7.97	2.35	2.01	(70.51)	0.17
ClickSoftware (CKSW)	11/09/2007	4.61	2.35	2.01	(49.02)	None
Harvest Energy (HTE)	11/28/2007	21.01	8.56	2.93	(59.27)	0.26
iRobot (IRBT)	12/18/2007	18.65	10.32	3.53	(44.19)	None
MCG Capital (MCGC)	Various	10.86	0.70	0.48	(93.56)	0.05
LDK Solar (LDK)	01/22/2008	30.49	20.53	5.27	(32.67)	None
Aegon N.V. (AEG)	04/28/2008	15.99	5.30	2.72	(66.85)	0.09
LM Ericsson (ERIC) (AEG)	05/05/2008	11.83	6.17	4.22	(47.83)	0.08
TD Ameritrade (AMTD)	05/21/2008	17.68	12.35	4.23	(30.17)	None
Trina Solar (TSL)	06/06/2008 and 07/31/2008	45.61	11.56	2.47	(72.55)	None
Costco (COST)	08/01/2008	62.28	54.40	4.66	(12.65)	0.03
Frontline Limited (FRO)	10/06/2008	36.95	32.78	4.21	(11.27)	0.71
DryShips Incorporated (DRYS)	10/09/2008	19.30	19.09	4.90	(1.10)	0.11
Cash				(9.57)
Total Portfolio					(39.83)	3.23

• For SunTech Power (STP), we wrote covered calls for 2008 Dec 50 on 06/06/2008 at $5.20.
• For Taiwan Semi (TSM), we wrote covered calls for 2008 October 12.5 on 4/21/2008 at $0.45.
• For Altria and Philip Morris International, assumed spin-off ratio of 30.83:69.17. Altria is yet to supply the cost-basis info
• For Plum Creek Timber (PCL), we wrote covered calls for 2008 November 50 on 06/03/2008 at $1.70.

Elementary Public School Textbooks - ISBN Numbers, Used And List Prices

In US public schools, it is NOT mandatory for students to purchase textbooks. However, there are situations, when investing in textbooks makes sense:

• Your children are enrolled in a highly competitive public school and your kid is not quite falling into the groove,
• You are homeschooling,
  
• One of more of your children are disadvantaged in some way where it is difficult for them to internalize the subject matter and/or communicate about that, and
• It is more efficient for you to prepare your offspring as opposed to enrolling them in private tuition through programs such as Kumon.

From experience we know the confusion involved in identifying the textbooks that are recommended by the school district for each specific grade. Public schools mandate you sign a Damage Liability Contract at the beginning of the school year for the textbooks allotted to the child used in the classroom and that is a good starting place. Unfortunately, the titles are pretty generic and ISBN numbers are rarely listed. This makes it really hard for parents to be able to find and purchase the textbooks.

The publishers used for textbooks vary widely between school districts. Below is a list of books and their ISBNs separated out by grade level recommended for our public school (Alameda Unified School District – AUSD, East Bay, CA). Also listed are alternative school textbooks that may be used by other school districts:

Kindergarten:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Harcourt Math	0153522216, 978-0153522215	$30.70	$20
Earlybird Kindergarten Mathematics Textbook A (Standards Edition) - Marshall Cavendish Education	978-0761470151	$35	$28

Kindergarten Alternatives:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Scott Foresman - Reading Street Grade K	B002KN15WW	$30	$12
McGraw Hill - Open Court Reading: Kindergarten Blackline Master Book	0075723131	$40	$25
Harcourt StoryTown – Read-Aloud Anthology	978-0153517822	$35.50	$25
Harcourt Language Pupil Edition (Consumable)	978-0153179983	$22.50	$15
Harcourt School Publishers (HSP) Math Student Edition	978-0153412585	$30.70	$20
Harcourt Math 2007 Grade K Unit Books (Consumable)	978-0153527111	$31.80	$20
Houghton Mifflin Science Study Guide Level K (Consumable)	978-0618688692	$15	$10.80
Scott Foresman: Social Studies - Here We Go - Grade K	978-0328019373	$10	$6.05
Zaner Bloser Handwriting Grade K	978-0736751421	$30	$21
Comprehensive Curriculum Of Basic Skills – Kindergarten	1561893676	$19.95	$12
Comprehensive Curriculum of Basic Skills – Prek-K***	1561893749, 978-1561893744	$19.95	$10
Harcourt - Trofeos Pre-K Stories And Activity Book***	978-0153492914	$9.20	$7

*** These are Pre-K books. If your Kindergartner finds it too tough to handle the Kindergarten ones, these are good options.

First Grade:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Harcourt Math Grade 1	0153522224, 978-0153522222	$44.75	$17.00
Houghton Mifflin Mathematics Level 2	978-0395462126	$44.72	$10.00
Reading: Houghton Mifflin – Here We Go	0618257772, 978-0618257775	$26.61	$7.00
Reading: Houghton Mifflin – Let’s Be Friends	0618257780, 978-0618257782	$26.61	$7.00
Reading: Houghton Mifflin - Surprises	0618012281, 978-0618012282	$28.78	$8.00
Reading: Houghton Mifflin - Treasures	978-0618012299	$28.78	$8.00
Reading: Houghton Mifflin - Wonders	0618-01230-3, 978-0618012305	$28.78	$5.00

First Grade Alternatives:

	ISBN-10, ISBN-13	List Price	Best Online Price**
McGraw Hill - Open Court Reading Grade 1, Book 1	0076026906, 978-0076026906	$33.24	$17
McGraw Hill - Open Court Reading Grade 1, Book 2	0076026914, 978-0076026913	$33.24	$18
McGraw Hill – Open Court Reading Level 1, Book 1	0075692422, 978-0075692423	$51.28	$10
McGraw Hill – Open Court Reading Level 1, Book 2	0075692430, 978-0075692430	$51.28	$10
Harcourt School Publishers (HSP) StoryTown Grade 1 Volume 1 through 5 (Five Books Each)	978-0153431685 to 978-0153431722	$33.70 to $36 per volume	$15 per volume
Harcourt Language Grade 1 Pupil Edition (Consumable)	978-0153178313	$30	$15
Harcourt School Publishers (HSP) Math Grade 1 Student Edition	978-0153412592	$42.10	$25
Harcourt Math Grade 1 Unit Books (Consumable)	978-0153527128	$43.80	$20
Harcourt Science Student Edition, National Version Grade 1	978-0153400605	$58.70	$15
Harcourt Health and Fitness Student Edition Grade 1	978-0153375248	$45.40	$30
Science: Previously Harcourt Science Grade 1	978-0153174964	$36.81	$5
Houghton Mifflin Harcourt (HMH) Science Grade Level 1 Pupil Edition	978-0618492237	$64.20	$30
Scott Foresman Social Studies - All Together - Grade 1	978-0328075683	$60	$32
Harcourt (HMH) - Your Health - Grade 1	978-0153101397	$40	$4
Zaner Bloser Handwriting - Grade 1	978-0736751438	$25	$18
Comprehensive Curriculum Of Basic Skills – Grade 1	1561893684, 978-1561893683	$19.95	$8

Second Grade:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Harcourt Math Grade 2	0153522232, 978-0153522239.	$44.75	$20.00
Reading: Houghton Mifflin - Adventures	0618012311, 978-0618012312	$42.64	$6
Reading: Houghton Mifflin - Delights	061801232X, 978-0618012329	$42.64	$6
Sadler - Progress in Mathematics Grade 2	978-0821526026	$30	$11

Second Grade Alternatives:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Premium Education Series – Language Arts Grade 2	1586108042, 978-1586108045	$7.95	$4
McGraw Hill – Open Court Reading Grade 2	0075695383, 978-0075695387	$33.24	$6
McGraw Hill – Open Court Reading Level 2	0075692449, 978-0075692447	$54.12	$15
Reading: Harcourt School Publishers (HSP) Grade 2 Volume 1 and Volume 2 Student Edition	9780153431739 and 9780153431746	$50.90 per volume.	$35 per volume.
Reading: Harcourt Language Grade 2 Pupil Edition	978-0153190940	$50.40	$30
Harcourt Language Arts: Out Of The Blue – Signatures	0153063998	$45.45	$5
Math: Harcourt School Publishers (HSP) Math Grade 2 Student Edition	978-0153412608	$42.10	$30
Harcourt Math Grade 2 Student Edition, National Version	978-0153522239	$42.10	$30
Harcourt Math Grade 2 Unit Books (consumable)	978-0153527135	$43.80	$25
Math: Scott Foresman, California Mathematics Grade 2	0328004669, 978-0328004669
Scott Foresman – Addison Wesley Grade 2 Math	020169012-8, 978-0201690125
Harcourt Math Grade 2 Practice Book	015320436-2, 978-0153204364
Harcourt Math Grade 2 Unit 1 through 6	015321841X, 978-0153218415	$40
Harcourt Science Grade 2	015317497-8, 978-0153174971.	$36.81	$5
Houghton Mifflin Science Grade 2 Pupil Edition	978-0618492244	$64.20	$42
Scott Foresman Social Studies Grade 2 - People and Places - Gold Edition	978-0328239726	$60	$40
Harcourt Science Grade 2 Student Edition, National Version	978-0153400612	$58.70
Harcourt Health and Fitness Grade 2 Student Edition	978-0153375255	$45.40
Harcourt - Your Health Activity Book - Grade 2	978-0153346729	$16	$14
Zaner Bloser Handwriting Grade 2 Workbook Edition	978-0736751445	$40	$30
Comprehensive Curriculum Of Basic Skills – Grade 2	1561893692, 978-1561893690	$19.95	$7
Scholastic Success with 2nd Grade Workbook	0439569702, 078-073569700,	$16.99	$5

Third Grade:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Harcourt Math California Edition Grade 3	0153155132, 978-0153155130	$59.70	$10.00
Reading: Houghton Mifflin - Rewards Grade 3	0618012338, 978-0618012336	$42.64	$6.00
Reading: Houghton Mifflin - Horizons Grade 3	0618012346, 978-0618012343	$42.64	$6.00
Science: Delta Education FOSS – Science Resource Book Foss Grade 3	1592429955, 978-1592429950	$26.40	$17
Sadler - Progress in Mathematics Grade 3	978-0821517031	$60	$16

Third Grade Alternatives:

	ISBN-10, ISBN-13	List Price	Best Online Price**
McGraw Hill – Open Court Reading Level 3	0075692465, 978-0075692461	$57.96	$15
Reading: Harcourt School Publishers (HSP) Grade 3, Volume 1 and Volume 2	9780153431753 and 9780153431760	$53.70 per volume
Harcourt Language Grade 3 Pupil Edition	9780153178337	$62.60
Harcourt Math Grade 3 National Edition	0153427175, 978-0153522246	$82.30	$32
Scott Foresman Math Grade 3	0201363852, 978-0201363852	$76.96	$6
Harcourt School Publishers (HSP) Math Grade 3 Student Edition	9780153412615	$77
Harcourt Science Grade 3 Student Edition, National Version	978-0153400629	$65.40
Harcourt Health and Fitness Grade 3 Student Edition	978-0153375262	$54.70
Harcourt Science California Edition Grade 3	0153176520, 978-0153176524	$75	$6
Houghton Mifflin Science – Grade 3	978-0618492251	$60	$42
Scott Foresman - Social Studies - Grade 3 - Communities	978-0328075706	$60	$24
Harcourt - Your Health - Grade 3	978-0153101410	$9	$4
Zaner Bloser Handwriting - Grade 3 - Opens the Door to Communication Workbook Edition	978-0736712132	$20	$12
Comprehensive Curriculum Of Basic Skills – Grade 3	1561893706, 978-1561893706	$19.95	$6
McGraw Hill - California Test Practice Grade 3	0769630332, 087-577904337	$15.95	$7
Houghton Mifflin English Level 3 (Houghton Mifflin Harcount - HMH)	978-0618030798	$79.99	$10
Houghton Mifflin Math Level 3 (Grade 3)	978-0618277209	$75.99	$16

Fourth Grade:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Harcourt Math California Edition Grade 4	0153155140, 978-0153155147	$59.70	$8
Reading: Houghton Mifflin - Grade 4 Traditions	0618157204, 978-0618157204	$74.67	$6
California Math, Student Edition (Grade Level 4)	978-0618827404	$60	$15
California Science: Grade 4 (Student Edition)	978-0022843786	$45	$45
California Studies: History-Social Science, Grade 4 [STUDENT EDITION]	978-0618423927	$69.25	$23
Traditions: Level 4, California Edition (Houghton Mifflin Reading Nations Choice)	978-0618157204	$74.67	$17
Science: Delta Education FOSS – Science Resource Book Foss	1592429963, 978-1592429967	26.40	$14
Sadler - Progress in Mathematics Grade 4	978-0821526149	$80	$49

Fourth Grade Alternatives:

	ISBN-10, ISBN-13	List Price	Best Online Price**
McGraw Hill – Open Court Reading Level 4	0075692481, 978-0075692485	$77.72	$19
Harcourt Grade 4 Student Edition, Winning Catch	9780153431777	$73.30
Harcourt Language Pupil Edition Grade 4	9780153178344	$62.60
Harcourt School Publishers (HSP) Math Student Edition Grade 4	9780153412622	$77
Harcourt Math Student Edition, National Version Grade 4	9780153522253	$77.30
Harcourt Math 4 - National Edition	0153522259, 978-0153522253	$82.30	$53
Harcourt Science Grade 4 Student Edition, National Version	978-0153400636	$65.60
Harcourt Health and Fitness Student Edition Grade 4	9780153375279	$57.80
Social Studies: Scott Foresman – History-Social Science for California		$16.20
Comprehensive Curriculum Of Basic Skills – Grade 4	1561893714, 978-1561893713	$19.95	$6
Houghton Mifflin Math Level 4 (Grade 4) - Houghton Mifflin Harcourt (HMH)	978-0618277216	$75.99	$16
Houghton Mifflin Spelling & Vocabulary Level 4 (Grade 4) - Houghton Mifflin Harcourt (HMH)	978-0395855317	$23.73	$11
Houghton Mifflin Science Grade 4 (HMH)	978-0618624614	$60	$45
Scott Foresman Social Studies Grade 4 - Regions	978-0328239740	$75	$68
Harcourt Your Health Grade 4 Assessment Guide	978-0153113468	$20	$14
Zaner Bloser Handwriting Grade 4 Workbook Edition	978-0736751476	$80	$40

Fifth Grade:

	ISBN-10, ISBN-13	List Price	Best Online Price**
Harcourt Math California Edition Grade 5	0153155175, 978-0153155178	$59.70	$10
Reading: Houghton Mifflin – Expeditions Grade 5	0618012362, 978-0618012367	$77.07	$6
Science: Delta Education FOSS – Science Resource Book Foss Grade 5	1592429971	$26.40	$16
Sadler - Progress in Mathematics Grade 5	978-0821582053	$100	$54

Fifth Grade Alternatives:

	ISBN-10, ISBN-13	List Price	Best Online Price**
McGraw Hill – Open Court Reading Level 4	0075692481, 978-0075692485	$77.72	$19
McGraw Hill – Open Court Reading Grade 5	0076026973, 978-0076026975	$50.34	$45
Harcourt StoryTown Grade 5 Student Edition, Ride the Edge	978-0153431784	$73.30
Harcourt Language Grade 5 Pupil Edition	978-0153178368	$68
Harcourt School Publishers Grade 5 (HSP) Math Student Edition	978-0153412639	$77
Harcourt Math Grade 5 National Edition	0153522275, 978-0153522277	$82.30	$53
Harcourt Science Student Edition Grade 5, National Version	978-0153400643	$72
Harcourt Health and Fitness Grade 5 Student Edition	978-0153375293	$59.10
Comprehensive Curriculum Of Basic Skills – Grade 5	1561893722, 978-1561893720	$19.95	$5
Houghton Mifflin Math – Grade 5	978-0618277223	$83.20	$11
Houghton Mifflin English Level 5 – Grade 5	978-0618310012	$72.07	$15
Houghton Mifflin Spelling & Vocabulary Level 5	978-0395855324	$27	$17
Scott Foresman - Building a Nation - Social Studies Grade 5	978-0328075737	$80	$60
Harcourt - Your Health - Grade 5 Activity Book	978-0153113413	$10	$4
Zane Bloser Handwriting Grade 5: A Way to Self Expression	978-0880851749	$40	$5

**For a used copy with no markings or tears and includes shipping.

When it comes time to actually purchasing these books, there are some basic options:

• Purchase it new from a bookstore or over the Internet,
• Purchase a used copy, and
• Acquire it on a temporary basis from resources such as the local library.

Considering the list price on most textbooks are upwards of $40 and that each one easily outweighs a pound, our recommendation would be for acquiring them on a temporary shared basis from resources such as the local library, should such an option be available. Don't borrow the funds for your textbook purchase if at all possible. Paying interest on payday loans or credit cards make any textbook purchase an unreasonable expense. Used textbooks are almost always available in significant quantities through online sources, so buying these textbooks used is a very good option as well. Needless to say, by choosing one of these options, you save some trees too!

We will continue to update this post as we dig up information on textbooks used in different public schools…


Frugal Tip: Previous versions of some textbooks are much more affordable compared to the latest version and in many cases, the content is not substantively different. To make an informed purchase decision, your best bet is to check with the instructor.


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Last Updated: 05/2013.