On May 25, we started the $33,000 American Portfolio saying:
We'll start our portfolio with $33,000 in honor of the average American and give our portfolio the following purpose: The purpose of the $33,000 American Portfolio is to be a learning tool for seeking home-run potential with acceptable risk.
Let's have a look at where we stand.
The $33,000 American Portfolio
JG Boswell (PINK: OTCPK:BWEL)
The Boz does not exactly trade with Europe and has drifted a little higher.
6 shares BWEL @ 717.00 = $4,302 (13.04% of the portfolio)
Last close $730, $4,380 total, +$78
Waterfurnace Renewable (PINK: OTC:WFIFF)
The little furnace that could got out to a big start but bad economic data has weighed on housing plays.
200 shares WFIFF @ 15.28 = $3,056 (9.26% of the portfolio)
Last close $15.45, $3,090 total, +$34
Alliance Grain Traders (PINK: OTCPK:AGXXF)
The Alliance has been a dancer for us.
150 shares AGXXF @ 10.78 = $1,617 (4.90% of the portfolio)
Last close $12.40, $1,860 total, +$243
If Alliance has been a dancer, then Solazyme has been John Travolta (in a he's a really great dancer kind of way). The Soul has run well above the strike price of $12.50 where we sold our put and we intend to hold through expiration unless conditions on the ground change.
Kudos to Mr Kevin Quon for his great coverage of Solazyme. For those that are looking for another interesting name in the space, Kevin noted in the linked article that Gevo (NASDAQ:GEVO) has a deal with Coca-Cola. It's a very interesting company, years away from being a mature money-maker, but its prospects are worth noting. In addition, Gevo announced a secondary today and shares are down a whopping 22%.
11 contracts SZYM Sept 22 $12.50 Put @ $3.20 = $3,520 (10.67% equivalent of portfolio)
Cost to close puts: $1,595 Difference: +$1925
Arch Coal (ACI)
Arch has been throttled, but we think the future is bright, as it is a domestic energy play and natural gas prices appear to be drifting higher.
13 contracts ACI July 21 $8.00 Put @ $1.27 = $1,651 (5.00% equivalent of portfolio)
Cost to close puts: $2,626 Difference: -$975
8 contracts ACI Jan 2014 $8.00 Call @ $2.13 = $1,704 (5.16% of the portfolio)
Last Trade: $1.37, $1,096 total, -$608
We've got 18 months to wait on Amazon.
1 contract AMZN Jan 2014 $150.00 Put @ $16.90 = $1,690 (5.12% of the portfolio)
Last Trade: $13.75, $1,375 total, -$315
We've got 18 months to wait on Salesforce.
1 contract CRM Jan 2014 $100.00 Put @ $14.90 = $1,490 (4.52% of the portfolio)
Last Trade: $14.50, $1,450 total, -$40
The EU summit starting on Thursday looms large. In the previous post for the $33,000 American Portfolio, we said that it was looking like time to get an oil stock, and we said we liked Suncor (NYSE:SU). After a little consideration, we do indeed like Suncor and may take a position in the future. However, we do not think that anything will be solved in Europe, even if it might appear otherwise for a while, and we think oil has further to fall this year.
In other articles we will be speculating on the global situation and suggesting possible trades. We think the American 33 Portfolio is positioned just fine for this market. Boswell, being an American farm, does not trade with European banks. Likewise with Canadian plays Waterfurnace and Alliance.
Arch is almost exclusive domestic energy and we like that very much. Silicon Valley play Solazyme is not a mature stock and does not have to worry about missing earnings or the like and should not be especially sensitive to European volatility. Our other two plays are short plays and we like them.
For now the break down is as follows:
- Stocks and Options: $13,251
- Cost to close puts: ($4,221)
- Cash: $24,312
- Total: $33,342
Disclosure: I am long ACI.