Sunday, October 24, 2010

Trade: Bought MedcoHealth Solutions

On Thursday, purchases MedcoHealth Solutions (MHS) for the Net Payout Yield Portfolio. As mentioned back on Aug 23rd [MedcoHealth Solutions: Ultimate Net Payout Yield], MHS was on the radar for addition to this portfolio. It almost ran away from us after hitting bottom just one week after writing that post, but this recent pullback touch the 50ema and gave us an entry point.

MHS is on a massive stock buyback spree signaling not only a financially strong company, but also a cheap stock. Just bought a half position at this point as typical for this portfolio size.

Note: This portfolio will be available soon at Covestor.com under Mark Holder. It will be the 2nd model I offer after the successful Opportunistic model that currently has 16 subscribers. This portfolio has consistently beat the SP500 by 6% since being tracked first by hand since the start of 2007 and then the last 27 months at Marketocracy.com. The important key to this portfolio is that it has a Beta of 1 and involves minimal trading. Otherwise, it has the same risk characteristics of the SP500, but much higher gains.


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