Thursday, September 21, 2006

Portfolio and Market Update

The market is taking a beating today. Scanning the headlines, it looks like one of the reasons has to do with a negative reading on manufacturing activity coming from the Philadelphia Federal Reserve. Additionally, the Leading Economic Indicators number fell 0.2%. The increased worries about potential economic slowdown is putting the hurt on us today.

Only a few bright spots in the portfolio today: Amgen (AMGN), Chevron (CVX), Harrah's (HET), and Student Loan (STU). The rest of the portfolio got shelled pretty good.

FormFactor (FORM) dropped a whopping $5 a share. The semiconductor sector is down over 2%. So, this also affected Linear Technology (LLTC) in the portfolio.

The teen retailers in the portfolio are also getting hit hard today. American Eagle Outfitters (AEOS) is off roughly 2.5%, Abercrombie and Fitch is down over 3%, and Deb Shops is trading lower by two thirds of a percent.

However, I'm a glutton for punishment. I used today's drop to add to my Eastman Kodak (EK) position. I increased the position by 30% at 21.59. I know I've been long on EK for a while now, and at the moment I have serious egg on my face. But, I am still a believer, that when this stalwart turns itself around the payoff will be large. The cost basis on this position now sits at $25.92.

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