2009 Stock Portfolio Performance and 2010 Outlook

We started 2009 fully invested and as the stock market went straight up from the March lows, we exited some of our more aggressive positions while also writing covered calls on other positions. The portfolio was shifted to the defensive side by accumulating stocks with a history of paying out good dividends. With the addition of another defensive name in Exelon (EXC), our cash position has come down to around 8%. Our plan for 2010 is to continue building a defensive stock portfolio with a focus on stocks that pay good dividends and has historically grown dividends.

Our portfolio is about 3% in the red. Given that we started the year more than 35% down, the performance is reasonable as we out-performed most of the major indexes except for the technology laden Nasdaq. The total realized gain (loss) came in marginally positive at 0.66%. Dividends accounted for around 2.75% of the performance while small losses from our stock transactions and ESPP sales combined to dampen the total return. Dividends came in about 10% less than last year as many of the high-yielding companies in the portfolio reduced or completely stopped paying dividends this year. We had a small capital-loss carry forward and that along with the stock losses from this year should allow us to claim the $3000 capital loss allowed in the 2009 tax year. Below is our updated portfolio:
















































































StockBuy DateBuy PriceCurrent PriceCurrent % Of PortfolioUnrealized % ReturnYield as % of Portfolio Value
Altria (MO) Various16.6919.633.0017.650.38
Philip Morris International (PM)1/4/200532.1948.195.8549.690.45
Kraft Foods (KFT)Various24.0327.182.7713.090.23
Pfizer (PFE)Various24.3718.194.64(25.35)0.30
ICICI Bank (IBN)5/18/2006 and 08/01/200825.2837.719.6249.190.30
Advantage Energy Fund (AAV)11/2/200611.226.521.66(41.91)0.17
Central Europe & Russia Fund (CEE)Various39.2332.995.89(15.90)0.03
Itron Inc. (ITRI)11/07/200785.0167.573.45(20.61)None
Anthracite (ACPI – formerly AHR)11/09/20077.970.100.02(98.79)0.00
iRobot (IRBT)12/18/200718.6517.603.59(4.82)None
LDK Solar (LDK)01/22/200830.497.011.07(77.01)None
Aegon N.V. (AEG)04/28/200815.996.410.98(59.90)0.00
TD Ameritrade (AMTD) – Call Value05/21/200817.68 19.383.969.59None
Costco (COST) Call Value08/01/200862.28 59.173.02(4.99)0.07
Frontline Limited (FRO)10/06/200836.95 27.322.09(26.05)0.17
DryShips Incorporated (DRYS)02/09/20096.96 5.822.08(16.43)0.00
Plum Creek Timber (PCL)07/23/200930.50 37.767.7123.810.46
CPFL Energia S.A. (CPL)07/28/200950.45 61.786.3022.460.55
BP plc (BP)08/05/200951.49 57.975.9212.590.45
AT&T (T)08/27/200926.38 28.035.726.240.39
Sysco Corporation (SYY)10/13/200925.23 27.945.7010.720.39
Exelon (EXC)12/30/200949.38 48.878.89(1.04)0.45
Cash








8.39





Total Portfolio











(3.20)4.26



  • For Altria and Philip Morris International, cost basis is calculated using the spin-off ratio of 30.5:69.5.
  • 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:






















































































StockBuy DateBuy PriceSell DateSell Price% Gain (Loss)% Portfolio Return*
DryShips (DRYS) Various 11.66 01/29/2009 8.96 (23.29) (1.39)
DryShips Feb 15 Calls (OOCBC) 01/29/20090.20 01/16/2009 2.50 922 0.58
Companhia Siderugica Nacional (SID) Various11.03 01/29/2009 16.01 44.86 1.73
Taiwan Semi Feb 7.5 Calls (TSMBU) ExpiredNA 01/09/2009 0.90 NA 0.77
Taiwan Semi (TSM) 7/27/20068.70 03/03/2009 7.76 NA (0.78)
Direxion Financial Bull 3X Shares (FAS) 03/16/20095.09 03/19/2009 6.53 28.31 1.26
Direxion Financial Bull 3X Shares (FAS) 03/23/20095.94 03/23/2009 6.22 4.63 0.19
Direxion Financial Bull 3X Shares (FAS) 03/24/20096.45 03/24/2009 7.12 10.30 0.44
Direxion Financial Bear 3X Shares (FAZ) 03/26/200919.67 03/27/2009 19.91 1.22 0.05
Direxion Financial Bull 3X Shares (FAS) 03/30/20095.49 03/31/2009 5.20 (5.35) (0.23)
Direxion Financial Bear 3X Shares (FAZ) 04/09/200910.47 04/13/2009 11.03 5.40 0.22
RQCDU – Ericsson April 7.5 Calls 1/21/2009NA 04/18/2009 7.50 NA 0.65
Ericsson ADR (ERIC) 5/5/200811.83 04/18/2009 7.48 (36.80) (3.04)
FASEB – May 10 calls on FAS 4/27/20090.58 04/22/2009 0.90 NA0.14
FASEJ – May 8 calls on FAS 5/01/20090.93 04/30/2009 1.47 NA0.14
Direxion Financial Bull 3X (FAS) 4/13/20099.86 06/18/2009 8.78 (10.95)(0.47)
FASFI – June 9 calls on FAS 6/18/20090.28 05/18/2009 1.52 NA0.54
Trina Solar (TSL) Various24.90 6/20/2009 22.50 (9.65)(1.05)
TSLFX – June 22.5 calls on TSL 6/20/20090 05/27/2009 2.77 NA1.21
Click Software (CKSW) 11/09/20074.61 07/01/2009 6.84 48.371.95
Conoco-Phillips (COP) 7/29/200943.08 08/05/2009 44.44 3.160.24
Patni (PTI) 8/10/200720.87 11/02/2009 19.24 (7.79)(0.60)
Harvest Trust Energy (HTE) 11/28/200721.02 12/31/2009 9.48 (54.90)(3.43)
Company Stock VariousNA Various NA NA(1.06)
Dividends ---- -2.48
Net Realized 2009 Gain/(Loss)-----0.67



  • % 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.

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