Stock Portfolio and Watch List Updates for December 2009 – No New Transactions

As the stock market continued to go up, we stayed in the sidelines. Our cash position is around 15%. The covered calls we wrote along with the Harvest Energy acquisition could result in the cash position going over 25% eventually. While we shoot to remain fully invested with assets in our stock portfolio, it is also important to show patience as the stock market has gone straight up since the March low.

Below is our updated portfolio – it is about 6% in the red:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	16.69	19.52	3.00	16.99	0.38
Philip Morris International (PM)	1/4/2005	32.19	48.48	5.79	50.59	0.45
Kraft Foods (KFT)	Various	24.03	26.79	2.75	11.47	0.23
Pfizer (PFE)	Various	24.37	18.30	4.69	(24.90)	0.30
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	36.63	9.39	44.92	0.30
Advantage Energy Fund (AAV)	11/2/2006	11.22	5.96	1.53	(46.90)	0.17
Central Europe & Russia Fund (CEE)	Various	39.23	32.50	5.83	(17.14)	0.03
Itron Inc. (ITRI)	11/07/2007	85.01	64.43	3.30	(24.30)	None
Anthracite (ACPI – formerly AHR)	11/09/2007	7.97	0.10	0.03	(98.75)	0.00
Harvest Energy (HTE)	11/28/2007	21.01	9.37	1.92	(55.41)	0.22
iRobot (IRBT)	12/18/2007	18.65	16.64	3.41	(10.01)	None
LDK Solar (LDK)	01/22/2008	30.49	8.56	1.32	(71.93)	None
Aegon N.V. (AEG)	04/28/2008	15.99	6.59	1.01	(58.78)	0.00
TD Ameritrade (AMTD) – Call Value	05/21/2008	17.68	17.50	3.59	(1.04)	None
Costco (COST) Call Value	08/01/2008	62.28	59.32	3.04	(4.75)	0.07
Frontline Limited (FRO)	10/06/2008	36.95	28.02	2.16	(24.14)	0.17
DryShips Incorporated (DRYS)	02/09/2009	6.96	6.09	2.19	(12.55)	0.00
Plum Creek Timber (PCL)	07/23/2009	30.50	36.53	7.49	19.77	0.46
CPFL Energia S.A. (CPL)	07/28/2009	50.45	65.57	6.73	29.97	0.55
BP plc (BP)	08/05/2009	51.49	56.45	5.79	9.63	0.45
AT&T (T)	08/27/2009	26.38	28.01	5.75	6.16	0.39
Sysco Corporation (SYY)	10/13/2009	25.23	29.33	6.02	16.23	0.39
Cash				14.08
Total Portfolio					(5.84)	3.81

• 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 Ameritrade (AMTD), we wrote Jan 10, 17.5 Covered Calls on them at $2.80 on 9/10/2009. Since the current price is above exercise price, exercise price is above.
• For Costco (COST), we wrote Jan 10, 60 Covered Calls on them at $2.90 on 9/21/2009
• For ICICI Bank (IBN), we wrote March 10, 40 Covered Calls on them at $5.90 on 10/06/2009 against 40% of our shares

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
DryShips (DRYS)	Various	11.66	01/29/2009	8.96	(23.29)	(1.39)
DryShips Feb 15 Calls (OOCBC)	01/29/2009	0.20	01/16/2009	2.50	922	0.58
Companhia Siderugica Nacional (SID)	Various	11.03	01/29/2009	16.01	44.86	1.73
Taiwan Semi Feb 7.5 Calls (TSMBU)	Expired	NA	01/09/2009	0.90	NA	0.77
Taiwan Semi (TSM)	7/27/2006	8.70	03/03/2009	7.76	NA	(0.78)
Direxion Financial Bull 3X Shares (FAS)	03/16/2009	5.09	03/19/2009	6.53	28.31	1.26
Direxion Financial Bull 3X Shares (FAS)	03/23/2009	5.94	03/23/2009	6.22	4.63	0.19
Direxion Financial Bull 3X Shares (FAS)	03/24/2009	6.45	03/24/2009	7.12	10.30	0.44
Direxion Financial Bear 3X Shares (FAZ)	03/26/2009	19.67	03/27/2009	19.91	1.22	0.05
Direxion Financial Bull 3X Shares (FAS)	03/30/2009	5.49	03/31/2009	5.20	(5.35)	(0.23)
Direxion Financial Bear 3X Shares (FAZ)	04/09/2009	10.47	04/13/2009	11.03	5.40	0.22
RQCDU – Ericsson April 7.5 Calls	1/21/2009	NA	04/18/2009	7.50	NA	0.65
Ericsson ADR (ERIC)	5/5/2008	11.83	04/18/2009	7.48	(36.80)	(3.04)
FASEB – May 10 calls on FAS	4/27/2009	0.58	04/22/2009	0.90	NA	0.14
FASEJ – May 8 calls on FAS	5/01/2009	0.93	04/30/2009	1.47	NA	0.14
Direxion Financial Bull 3X (FAS)	4/13/2009	9.86	06/18/2009	8.78	(10.95)	(0.47)
FASFI – June 9 calls on FAS	6/18/2009	0.28	05/18/2009	1.52	NA	0.54
Trina Solar (TSL)	Various	24.90	6/20/2009	22.50	(9.65)	(1.05)
TSLFX – June 22.5 calls on TSL	6/20/2009	0	05/27/2009	2.77	NA	1.21
CKSW	11/09/2007	4.61	07/01/2009	6.84	48.37	1.95
COP	7/29/2009	43.08	08/05/2009	44.44	3.16	0.24
PTI	8/10/2007	20.87	11/02/2009	19.24	(7.79)	(0.60)
Realized Gain/(Loss) YTD	-	-	-	-	-	2.41

• % 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.

One of the things that we do when trying to come up with investing ideas is to keep a running list of twenty companies we are interested in. We are currently focused on identifying investments with good dividends and dividend growth and so the list is geared towards such choices – Archer Daniels Midland (ADM), Automatic Data Processing (ADP), Boeing (BA), Becton Dickinson (BCK), BHP Billiton (BHP), Cardinal Health (CAH), Cresud (CRESY), Eaton (ETN), Emerson Electric (EMR), AgFeed (FEED), Glaxo (GSK), Home Depot (HD), Intel (INTC), Nokia (NOK), China Nepstar (NPD), Nutrisystem (NTRI), Nucor Steel (NUE), Qiagen (QGEN), UPS (UPS), and Waste Management (WM).