Tuesday, December 07, 2010

RSY XXII: Sabrient's Ratings Review

The RSY portfolio selection and re-balancing is based on Sabrient's ratings of stocks. We also use qualitative factors to help pick which stocks and when to make trades. Thus we need to keep a watchful eye on the change in ratings for the stocks that are in the portfolio especially if Sabrient downgrades a stock to Hold and then more importantly to Sell or StrongSell. Bellow is a summary output of the RSY portfolio using the Stock Ratings Reports product from Sabrient.

This does not include GAIN or NGPC as this was dropped from Sabrient's ratings. GAIN has gone up since we took some partial gains and continues to provide dividends on a monthly basis. NGPC has dropped some, since then, but still represents a substantial gain over the entry price. It also should be providing a dividend by months end. At that time RSY may wish to exit the position if the stock charts still look negative.

FL, LZ and MRH are rated as StrongBuys and thus will maintain their recommended positions in the portfolio. If EGAS drops to a hold then RSY may consider reducing the size of holdings, but until then it will maintain its current recommendations. IVR is another that should be providing a substantial dividend by end of the month. RSY recommended a trade that netted $386 on the 200 shares sold, and is sitting on nearly 600 in gains currently. Thus, until the next ex-dividend date comes, RSY recommends a hold of the remaining shares.

Sabrient is screaming to sell the TSH position, but with a declared ex-dividend date of December 15th, RSY also recommends a hold at least until the 16th. Even given that RSY provided no recommended sells yet, an individual investor must weigh all the facts to determine his/her own investment decisions.

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