Last night I went to my second block party since moving and met a guy that manages a hedge fund. He used to work for Business week and Investools (that ironically was owned for a short period by this portfolio.) We probably talked for about two hours about investing; I talked about why I lean a lot towards fundamental analysis, Google being a great company, but overvalued, K-Swiss, Value Investing. He was really impressed that I've e-mailed with Matt Richey and Whitney Tilson. He talked about options a lot, about how the main thing his household does use covered calls to reduce the cost basis, he talked about how he went to a dinner, or something, that Bill Mann was at, and how he had a "violent reaction" to covered calls and naked puts.I'm not really sure what a naked put is...Well, I finally found my "Stocks 2005" book so here goes my shortened explanations...BWLDI've never actually been to the restaurant, but have eaten the wings at school - they were good. From what I've read on the BWLD, HG Board they are busy a lot, I've yet to find one here in Utah. Right now TomG seems to love it, but Bill Mann is not as enthusiastic; comparing it to KKD. I once had a 40% gain, but that has evaporated pretty fast.I'm considering selling some of it to add to the cash, so I can find a new position to start.BWLD 14 $449.40 -3.05%_______________________________________________________________________FAROAnother HG pick has great competitive advantages -- see earslookin posts -- I bought on the drop, and think it should be a good long term pick. They make 3-D measurement systems.FARO 25 $581.5 -2.31%________________________________________________________________________IJSI wanted to diversify with an index, The S&P small cap, value, 600 looked like the best choice. At one point I thought I was down 40%, the I saw there were twice as many share :-)IJS 8 $512.24 6.72%________________________________________________________________________LEIX & PRXNow we have two disappointers, both were picked from "Stocks 2005." Lowrance makes GPS products, in "Stocks 2005" TomG put together 11 different things for his thesis and two catalysts: Rapid growth in GPS industry and the investor discovering that. LEIX is a micro cap with a market cap of 108.5 million, it said in stocks 2005 there was no share dilution, but it fell over 30% while the market cap rose, so I'll re-evaluate the investment thesis for next month and I may sell the shares I have at a loss.Par is a pharmaceutical that I weight way to much in the initial buy, then I averaged down making Par become too much of my portfolio. Par was picked by KitKat and Admiral, as an undervalued cyclical. It's transitioning from a generic -- drug dealer :-) -- to specialty pharmaceuticals has been worse than anticipated <<http://boards.fool.com/Message.asp?mid=22813823&sort=whole#22814075>>KitKat is still holding her shares, Admiral -- who says he will post on the board soon -- says his wife is still holding her shares, so I'll keep mine where they are but this thing is really killing the portfolio with a $325 loss, it wasn't supposed to move -- up, at least -- until late this year early next year so I'll wait until then to see what will happen. I'm looking forward to the Admiral's post.LEIX 20 $422.6 -30.95% PRX 18 $431.46 -42.95%________________________________________________________________________MDC I got MDC from David Einhorn's interview with Value Investor Insight. Einhorn says that if his estimates of strong earnings are right then even a 2/3 of the current EPS $72 per share is way undervalued. Currently it's at $79 and has been a good stock for me.MDC 7 $554.68 11.31% ________________________________________________________________________NOKI picked this when I saw it was about 50% of the BMWM portfolio, then did my own DD and saw it was also undervalued by traditional means. Nokia was doing well for a while but has floated back down to near my purchase price. I would recommend the post that's in hot topics right now on its industry.NOK 26 $414.44 -.3%__________________________________________________________________________STLYAt the time I thought Stanley was the most undervalued of all the HG picks, so far it looks like I'm right. Stanley has become the largest position, just from going up. While I was in Wisconsin with my Grandma it went up 15% one day, I told her and she looked surprised and said they bought the kitchen table in Wisconsin from Stanley thirty years ago :-)STLY 25 $701 39.85% ________________________________________________________________________That sums up the current Stock positions, I still have ~$275 in cash, and by next month may have sold LEIX and/or some of BWLD so there may be a new position from….The Watch listThe Watch list is just a bunch of companies that I haven't looked into yet or are undervalued.I'll just write the company names.GoogleJohn DeereHome DepotLongview FibreKinder Morgan Energy Partners LPKinder Morgan IncAtlas Pipeline Partners, L.P.EBayAmazon.comYahoo!Pier 1There's a lot more but that's what I can remember, if anyone has ideas I'd love to hear them.-Mike
BWLD 14 $449.40 -3.05%
FARO 25 $581.5 -2.31%
IJS 8 $512.24 6.72%
LEIX 20 $422.6 -30.95% PRX 18 $431.46 -42.95%
MDC 7 $554.68 11.31%
NOK 26 $414.44 -.3%
STLY 25 $701 39.85%
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