(Month 4) – Up 19.63% – Deep Value Stock Portfolio

Johnny HopkinsTAM Deep Value Stock PortfolioLeave a Comment

Today is the end of month four of The Acquirer’s Multiple $45,000 – Deep Value Stock Portfolio – Real Money Game, and the portfolio is up 19.63% since inception.

The Deep Value Stock Portfolio – Real Money Game means I’m investing my entire superannuation valued at $45,000 into a real life Acquirer’s Multiple Portfolio and documenting it here.

The plan is to build my portfolio over the next twelve months and ongoing. After twelve months I’ll have thirty stocks equally weighted in the portfolio, then I’ll re-balance each position after one year and one day to minimize tax.

Month Four

As you can see from the chart below the portfolio is tracking nicely this month, currently up 19.63% since inception.

Company TICKER BUY $ Date Qty SV CP CV % Diff $ Diff
BRIDGEPOINT ED BPI 6.7 9/30/2016 225 1507.50 11.49 2585.25 71.49% 1077.75
PENDRELL CORP PCO 6.9 9/30/2016 222 1531.80 6.43 1427.46 -6.81% -104.34
AMERICAN PUB ED APEI 19.5 11/3/2016 78 1521.00 24.45 1907.1 25.38% 386.10
APOLLO ED GROUP APOL 8.75 11/3/2016 173 1513.75 9.99 1728.27 14.17% 214.52
FREIGHTCAR AMER RAIL 11.02 11/3/2016 136 1498.72 14.73 2003.28 33.67% 504.56
NET 1 UEPS TECH UEPS 11.69 11/29/2016 128 1496.32 11.6 1484.8 -0.77% -11.52
FIAT CHRYSLER FCAU 7.67 11/29/2016 197 1510.99 10.01 1971.97 30.51% 460.98
OVERSEAS SHIP GROUP OSG 3.95 12/27/2016 384 1516.80 5.45 2092.8 37.97% 576.00
APPLIED GENETIC TECH AGTC 10 12/27/2016 151 1510.00 8.5 1283.5 -15.00% -226.50
AVID TECH INC AVID 4.6 12/27/2016 325 1495.00 4.86 1579.5 5.65% 84.50
RMR GROUP RMR 42.8 12/27/2016 36 1540.80 42.8 1540.8 0.00% 0.00
EASTMAN KODAK KODK 14.8 12/27/2016 101 1494.80 14.8 1494.8 0.00% 0.00
Portfolio Performance 19.63% 2962.05

January’s picks include the next two cheapest stocks in the All Investable – Deep Value Stock Screen, here at The Acquirer’s Multiple. They are:

  • Eastman Kodak Company Common New (NYSE:KODK)
  • RMR Group Inc (NASDAQ:RMR)

Best performers in the portfolio to date include:

  • Bridgepoint Education Inc (NYSE:BPI) up 71%
  • Overseas Shipholding Group, Inc. Class A (NYSE:OSG) up 38%
  • FreightCar America, Inc. (NASDAQ:RAIL) up 34%
  • Fiat Chrysler Automobiles NV (NYSE:FCAU) up 31%
  • American Public Education, Inc. (NASDAQ:APEI) up 25%
  • Apollo Education Group Inc (NASDAQ:APOL) up 14%
  • Avid Technology, Inc. (NASDAQ:AVID) up 6%

Worst performers in the portfolio to date include:

  • Applied Genetic Technologies Corp (NASDAQ:AGTC) down 15%
  • Pendrell Corp (NASDAQ:PCO) down 7%

Neutral performers include:

  • Net 1 UEPS Technologies Inc (NASDAQ:UEPS) down 1%

Here’s what the headings mean:

Company: Company name

Ticker: Stock symbol

BUY$: Starting price for each position

Date: Date purchased

Qty: Number of shares purchased

SV: Starting Value. The total amount paid for each position

CP: Current price for each position

CV: Current total value for each position

% Diff: The difference between the starting price and the current price by percentage

$ Diff: The difference between the starting price and the current price in dollars

Investor’s Thoughts

After four months the portfolio is tracking nicely around 20%. Starting to see some real diversification now. In terms of picking stocks, sometimes you just have to hold your nose and buy, most are under-performing for a good reason and it can be unpalatable but, that’s what you have to do when you’re following an evidence based basket style strategy like the one here at The Acquirer’s Multiple. One mistake that investors make is trying to pick the best (in their opinion) stocks out of the screen instead of simply picking the cheapest on an Acquirer’s Multiple basis.

While we rely solely on fundamentals when selecting stocks for our deep value stock screens I do take an interest in the trend of the stocks I’m picking.

With regards the two new picks and their current trend, I don’t expect to see much improvement for KODK over the short-term with its trend being neutral. In the case of RMR, as you can see from the chart below the 50 Day SMA has broken through its 200 Day SMA in a bullish manner around January 17, 2017, so I expect we’ll see a positive move in RMR this month.

(Source: CBA)

View The TAM Portfolio Live

If you want to see what’s happening with my TAM Deep Value Portfolio live at any time without waiting for monthly updates. Take a look in the right side-bar on the Blog page where you’ll see the following image under the heading TAM Live Portfolio:

If you click on that image it will take you straight to my live portfolio anytime. Prices are updated automatically from Google Finance, although there may be a short delay.

Previous Months

If you want to have a look at the portfolio’s performance over previous months you can find updates here:

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