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Sunday, November 29, 2015

System Update. 11-2015


.this update covers activity from 11/30/15 to 1/29/2016.
  ...System12 original rule-set is basically discontinued. I continue to use it exclusively as high quality stock selection tool and timing entry/exit using weekly CSI (Composite Score Indicator)...


BOT: T on 1/13; CHL on 1/27; BUD and GOOGL on 1/28
DIVI received: PFE, WFC

This is MD:


MD Control: PTR and NVS out; AMZN and JPM in
Disqualified: AAPL, BRK, CHL
Earnings: all done

Four stocks in MegaDozen (MD) don't pay any dividends, the rest are barely 3% on average (+/-).
Three have asinine valuations. Four stocks have slightly below average P/E.
Overall its one of strangest and fundamentally weakest mix of index components I have ever seen.

This is SD:
BAC out; KO in (KO was 'coming up' on last update in August)
Some of stocks coming up: C and HSBC; PEP; GILD and MRK; ORCL and INTC (not ibm)
also HD almost at SD, after sitting at #34 in last update (I have HD in System9)
Oilers RDS and CVX hanging out; BABA at #21.


 I have a problem. Its this Utility mutual fund FSUTX, specifically its manager - one Mr. Simmons, Harvard MBA no less.
Now, I've been a long term investor in utilities for a long time and it served me well. The main reason for going mutual fund route vs. ETF is a dividend re-investment, which is free and automatic at Fidelity.
I monitor daily activity via XLU, knowing that mut fund is somewhere close, so noticeable underperformance of FSUTX caught me by surprise. He's got 70% of the the fund in same 10 utilities as everybody else, with all he has to do is re-balance, re-invest divi and sit tight. I pay this guy 0.8% to do this for me, not to have a turnover rate of 63% (as of 8/31/2015, even higher before that). What the hell is he trading out there?- I wonder. Upon further inspection I was shocked to find out that there is gambling going on in here, including some wild bets on renewable energy, speculation on oil and gas and some strong opinions based on vague assumptions. The most egregious transgression is completely out-of-index trades in Time Warner Cable, because he "consider cable & satellite companies modern-life utilities"...
Say, what? WHAT? Do I have to do everything myself? Really..?

System 9 activities.
BOT: TXN on 1/28
SLD: HD on 12/9; HRL on 12/23
DIVI received: HD