Stock Portfolio and Watch List Updates for March 2011

Following are the activity from the previous month:

1. Closed our cash-covered put option on Itron (ITRI) May 2011 60 at $6.70 written on 10/7/2010 for small loss. Also closed our cash-covered put option on Noble Corp (NE) June 2011 33 at $0.38 that we wrote on 11/4/2010 at $2.60. The transactions netted a total gain of around 0.14% based on the overall portfolio value.
2. Wrote cash covered puts on the following: McDonalds (MCD) Sep 2011 75 at $3.50 on 3/7/2011 with 2% of portfolio, Cameco (CCJ) Jan 2012 22.5 at $1.60 on 3/16/2011 with <2% of portfolio, and Glaxo (GSK) Jan 2012 35 at $2.70 with <2% of portfolio. 
3. Wrote covered calls on all our Cardinal Health (CAH) shares (Sep 2011 43 at $2.55 on 3/8/2011). 
4. Bought Procter & Gamble (PG) at $61.80 on 3/7/2011 with <2% of portfolio. 

The cash coverage requirements on the puts account for about 51.4% of our cash position. The cash position in our portfolio is high at around 39%. We will continue to use cash-covered puts along with direct purchases spread-out over a period of time to build the portfolio. Below is our updated portfolio – the overall portfolio is up 6.3% compared to our cost basis:

Stock	Buy Date	Buy Price	Current Price	Current % Of Portfolio	Unrealized % Return	Yield as % of Portfolio Value
Altria (MO)	Various	19.19	25.82	1.93	34.54	0.16
Philip Morris International (PM)	1/4/2005	32.19	65.12	1.94	102.28	0.12
Kraft Foods (KFT)	Various	26.33	31.26	1.86	18.74	0.09
Pfizer (PFE)	Various	22.13	20.35	2.12	(8.04)	0.09
ICICI Bank (IBN)	5/18/2006 and 08/01/2008	25.28	47.74	2.14	100.87	0.11
Central Europe & Russia Fund (CEE)	Various	39.23	44.67	2.33	13.88	0.01
Itron Inc. (ITRI)	11/07/2007	85.01	53.02	0.79	(37.70)	None
iRobot (IRBT)	12/18/2007	18.65	30.99	1.85	67.59	None
LDK Solar (LDK)	01/22/2008	30.49	11.25	1.01	(44.73)	None
Aegon N.V. (AEG)	04/28/2008	15.99	7.44	0.89	(24.14)	0.00
Frontline Limited (FRO)	10/06/2008	36.95	24.79	1.11	(24.57)	0.08
DryShips Incorporated (DRYS)	02/09/2009	6.96	4.90	0.51	(29.64)	0.00
Plum Creek Timber (PCL)	07/23/2009	30.50	42.44	2.53	39.15	0.14
CPFL Energia S.A. (CPL)	07/28/2009	50.45	82.58	2.46	63.69	0.18
BP plc (BP)	08/05/2009	51.49	46.87	1.40	(8.97)	0.09
AT&T (T)	08/27/2009	26.38	28.85	1.72	9.35	0.12
Sysco Corporation (SYY)	Various	25.92	27.86	2.08	7.47	0.10
Exelon (EXC)	12/30/2009	49.38	40.59	1.82	(17.81)	0.16
Telefonica SA (TEF)	02/09/2010	22.93	25.10	2.25	9.46	0.24
Vonage Holdings (VG)	04/06/2010	1.51	4.14	1.23	173.38	0
Archer Daniels Midland (ADM)	04/23/2010	28.27	35.30	2.11	24.85	0.09
Intel Corporation (INTC)	Various	21.91	20.37	2.43	(7.03)	0.12
Google Inc. (GOOG)	05/03/2010	528.36	579.70	1.73	9.72	0
Cardinal Health (CAH)	05/06/2010	34.42	41.32	1.85	20.04	0.06
Pearson PLC (PSO)	05/06/2010	14.32	17.35	1.81	21.13	0.16
Nokia (NOK)	05/14/2010	10.35	8.35	1.25	(19.32)	0.16
Harris (HRS)	06/07/2010	45.65	48.06	2.15	8.26	0.08
Beckton Dickson (BDX)	06/23/2010	70.20	78.65	2.35	12.04	0.10
NYSE EuroNext (NYX)	10/22/2010	30.38	34.48	2.06	13.50	0.15
Owens & Minor Inc. (OMI)	10/22/2010	28.11	31.60	1.88	12.42	0.08
Encana (ECA)	11/8/2010	29.22	34.64	2.07	18.65	0.10
Nucor Steel (NUE)	1/21/2011	44.96	46.56	2.08	3.55	0.12
K12 Inc (LRN)	2/15/2011	32.21	33.26	1.49	3.25	0.00
Procter and Gamble (PG)	3/7/2011	61.80	60.88	1.82	(1.49)	0.09
Cash				38.98
Total Portfolio					6.32	2.71

Below is a summary of transactions during the year:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
GSK Jan 2011 35 Put	1/22/2011	NA	3/26/2010	NA	NA	0.14
NUE Jan 2011 40 Put	1/22/2011	NA	3/26/2010	NA	NA	0.17
ADP Jan 2011 40 Put	1/22/2011	NA	6/21/2010	NA	NA	0.10
COST Jan 2011 55 Put	1/22/2011	NA	8/16/2010	NA	NA	0.10
QSII June 2011 60 Put	2/15/2011	NA	10/29/2010	NA	NA	0.15
AMTD Feb 2011 15 Put	2/19/2011	NA	7/13/2010	NA	NA	0.15
ITRI May 2011 60 Put	3/8/2011	NA	10/7/2010	NA	NA	(0.00)
NE June 2011 33 Put	3/8/2011	NA	11/4/2010	NA	NA	0.14
Realized Gain/(Loss) YTD	-	-	-	-	-	0.93

• % 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.

We have covered calls written against one-third of our ICICI Bank (IBN) shares (Jan 2012 55) and all of our Cardinal Health (CAH) shares (Sep 2011 43 at $2.55). We also have cash covered puts on Cisco (CSCO) shares (Jan 2012 20 at $2.64), Berkshire Hataway (BRK.B) shares (Jan 2012 75 at $7.15), Abbott Labs (ABT) shares (Jan 2012 45 at $4.40), Johnson & Johnson (JNJ) shares (July 2011 60 at $2.47), H&R Block (HRB) shares (Jan 2012 10 at $1.60 and 12.5 at $2.30), Alcoa (AA) shares (Jan 2012 15 at $1.70), Nutrisystem (NTRI) shares (June 2011 17 at $1.30), Gol Linhas (July 2011 12.5 at $0.85), McDonalds (MCD) shares (Sep 2011 75 at $3.50), Cameco (CCJ) shares (Jan 2012 22.5 at $1.60), and Glaxo (GSK) shares (Jan 2012 35 at $2.70) with a cash coverage requirement of about 51.4% of our cash position.

We added Ameron International Corporation (AMN), Coca Cola (KO), and Diebold (DBD) to our watch list. Also, Goldman Sachs (GS) was replaced with American Express (AXP). Our updated watch list follow – Almost Family (AFAM), Applied Materials (AMAT), Ameron International Corporation (AMN), Air Products & Chemicals (APD), American Express (AXP), Brown-Foreman (BF-B), Canon (CAJ), Diebold (DBD), Disney (DIS), Darden’s Restaurants (DRI), Home Depot (HD), Coca Cola (KO), 3M Company (MMM), China Nepstar (NPD), Pitney Bowes (PBI), Rovi Corporation (ROVI), UPS Corporation (UPS), VF Corporation (VFC), Waste Management (WM), Walmart (WMT).