Portfolio Checkpoint - 2006 Q3

The stock market rebounded in the third quarter this year. Most investors should be cheering right now, except for those who were seriously overweight in oil stocks or those stocks counting on high commodity prices. Anyway, here's the latest long-term portfolio allocation for the end of this quarter. You can see the previous checkpoint by clicking on this link.

The following represents the allocation of the long-term portfolio as of the end of Q3, 2006.

Company	Ticker	Q3	Q2	Change
Altria Group	MO	17.0%	18.2%	-1.2%
Harrah's Entertainment	HET	7.9%	9.6%	-1.7%
Student Loan Corp.	STU	7.7%	7.5%	0.2%
General Electric	GE	6.0%	6.2%	-0.2%
Constellation Brands	STZ	5.7%	5.6%	0.1%
First Marblehead Corp.	FMD	5.5%	5.1%	0.4%
International Gaming Technology	IGT	5.1%	5.2%	-0.1%
Eastman Kodak	EK	4.8%	4.4%	0.4%
Fortune Brands	FO	4.5%	4.8%	-0.3%
American Eagle Outfitters	AEOS	4.4%	6.1%	-1.7%
Form Factor	FORM	3.4%	4.0%	-0.6%
Apple Computer	AAPL	3.1%	* * *	* * *
Capital One Financial	COF	2.9%	3.6%	-0.7%
Home Depot	HD	2.9%	* * *	* * *
North Fork Bancorp.	NFB	2.9%	3.4%	-0.5%
Amgen	AMGN	2.8%	2.9%	-0.1%
Abercrombie and Fitch	ANF	2.8%	* * *	* * *
Chevron	CVX	2.6%	2.8%	-0.2%
Linear Technology	LLTC	2.5%	3.0%	-0.5%
Equity Office Properties	EOP	1.8%	1.9%	-0.1%
Sun Bancorp.	SNBC	1.6%	1.5%	0.1%
Deb Shops	DEBS	1.5%	1.6%	-0.1%
Kongzhong	KONG	0.6%	0.8%	-0.2%
Dow Chemical	DOW	0.0%	1.8%	-1.8%

Notes:

Percentages do not account for any cash held in the portfolio.

Dow Chemical (DOW) was sold off in August in order to purchase more Home Depot (HD). About 40% of American Eagle Outfitters (AEOS) was sold in order to initiate a position in Abercrombie and Fitch (ANF).

New positions initiated this quarter are: Abercrombie and Fitch (ANF) and Home Depot (HD).

Apple Computer (AAPL) was transferred from my trading portfolio into the long-term portfolio.

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There were a few notable stocks this quarter that moved more than 15%.

American Eagle Outfitters (AEOS) moved up nicely this quarter, finishing at $43.83, up 29%.

First Marblehead (FMD) also continued on its way up, finishing the quarter at $69.26, up 21.6% for the quarter. And, up a huge 147% from our initial purchase last September at $28 a share.

Constellation Brands (STZ) closed at $28.78 on Friday, up 15.1% from its $25 price tag at the end of last quarter.

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Current Trading Portfolio Holdings: eBay (EBAY), Multi-Fineline Electronix (MFLX), and Jan 2007 EBAY $32.50 Calls

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Still on the watch list:

Bare Escentuals (BARE)
Lifetime Brands (LCUT)
Nuance Communications (NUAN)
Shinhan Financial (SHG)
Universal Corp. (UVV)