(07-16-2014, 02:17 PM)ChadR Wrote: Looks like a really good list of companies. I own of few that you own, but not all of them. Need to do more research on some of them, but at first glance it looks good.
One thing that would worry me is that since you can't have more than 10% in any one stock, having only 11 stocks is scary. By this I mean that one good day for one stock can raise it to over 10% of your portfolio value. Or is it measured once a year and not daily? If it is daily, you might want to get $2,000 into it today and buy 2 more stocks real quick. Once you hit about 15 stocks or so this won't matter any more for you.
First I would like to thank you and EricL for replying.
The 10% limitation is monitored daily but it gives me 45 days to respond to it.
If I won't take action in 45 days than the broker is supposed to lock my account with the exception of actions that can fix the issue.
As for adding money, I'm afraid it is out of my hands.
My employer deposit funds in the middle of every month on my behalf (25% from my salary, 75% as a benefit by my employer - a total of ~$500 per month).
I am supposed to get the deposit for June in a week or so so that will give me another $500 to work with.
I intend to wait for middle August (when my July deposit kicks in) and then purchase another company (netting me 12 companies).
I'm hoping that the companies won't get out of sync too much to warrant drastic measures like selling part of my holdings.
I tried to balance the commission fees per trade and the small capital amount in my IRA so I figured $1,000 per trade should be good enough for commissions and still get me more than 10 companies total.
I would like your opinion on my picks in the "tie" part of the portfolio:
Health Care: OMI , SPAN <== tie
I chose SPAN over OMI while they both scored the same in my ranking system.
Do you think SPAN is better than OMI?
Do you have any suggestions on how to modify the filtering criterion's and ranking system I employed?
**edit**
I just noticed the addition part of EricL comment when he addressed those questions exactly
Thanks EricL.
I was anxious to get started so I rushed it, I'll definitely do more background work before my next purchase!
Good point about the small capital and the "no analysts are covering it".
I'll make sure my future purchases are covered by analysts and has bigger capital as well.
I didn't noticed ARLP is an MLP at all, I'll keep an eye out of those (I have no idea what the tax implications will be though).
Thanks for the very constructive and helpful criticism.
This is exactly why I wanted to post this thread