Moon Kil Woong's  Instablog

I was thinking to put together a list of 20 stocks to track from my followers and 1 from me (although if you read my posts you can see my actions). To keep it simple, a person may make a trade from the stock no more than once per month and any announce the buy before the market closes. The trade takes effect at the begining of the next day (please post the price and I'll verify it). It wil be $1,000 value for each stock picked for a $21,000 portfolio and must be traded on a US tradable exchange (no pink sheets or overseas exchanges since thinly traded stocks are too affected by pump jobs and overseas trades are sometimes difficult for readers to buy). Any company under $10 million in market cap will be excluded from the selection.

I'll start disclosing people's selections and start once I get a full selection. I plan to post the performance the end of every month after the picks are in. This is a intermediate trading selection, not a day trader forum since you can only trade max once a month and can't pick your price mid-day so you don't get to really pick your entry and exit point precisely. If you choose to sell you do not have to immediately select another. You can let it ride as cash with no interest. You may also short. Someone who stays in cash for over 3 months will automatically be replaced.

I and others may be curious about the stock long term. For me I'll add SKM to the board 2/26/2011 at $17.52 even though it shows it traded lower after hours. I disclosed my buy into it last week as my most recent reccomend on SA as well as my exit from my 1 week NFLX short and sales of GLW. As people's reccomendations get posted I'll announce them and the price they entered at. Please send your reccomendations to my mail here. I'll post results ending March and announce picks and changes as we go along. If the post gets too long please watch for new posts and happy picking.

In the future, if there are way more than 20 pickers I will cycle in and out of people based on performance and or compelling story. As the base gets bigger those that stay on will account for a bigger percent of the weighting and new entrants will start at the $1,000 mark. Hopefully, the total value of the fund will not need more additions from the $22,000 base. $1,000 of the tracking will be considered cash and is used to make up for the the loss of people leaving who have a net loss. Hopefully, we will not have to add any more. I will also accure a $15 cost to every trade and list it seperately so you can see how fees would accrue from trading since people always argue that trading cost is not taken into account. The issue of people saying you would manipulate the market with a buy is satisfied by the low value and the fact that trades are made at the openting where you are least likely to affect the price by a trade. Anyway, people are sticklers when it comes to stock tracking.   

When issuing your stock picks please give an explaination.

I'm bullish on SKT for a few reasons. It is aiming to dominate the higjh end of the mobile market in Korea. It trades at a very low PE. It has exclusive agreements to sell Galaxy in Korea and just got approved to sell iPhone next month in Korea even though the first award was given to its rival. Although this stock has languished as a dog for years, I believe it is waking up. I'm also not a bull on the US $ and think Korea will likely raise rates and bolster the Won's value to the US $ sooner than Bernanke, although that is not saying much. Bernanke's monetary policy is worse than just about anyone's. Korea's stock market has been rising as well. I expect the stock can appreciate a good 20% with very little risk. As you know, I take safety and risk into account and is one of the reason's my picks on SA don't lose $. For me the first lesson in the market is a good trade is a profitable one. Making large massive gains comes second to safety.

I reserve full rights to add, remove, post or not post people's selections, etc. I also request people send me some info about themselves for vetting. My purpose here it to avoid day traders, stock promoters, etc. and provide decent selections to my followers. Furthermore, mty aim is to allow people I belive will provide positive results and prevent completely lopesided weighting, like all picks being gold moners for instance.

Happy posting, reading, and picking.    

Portfolio: $22,000


SKM: 57.077 shares / $1,000
Trading cost: 15
Cash $20,985 

I am not a lover of buying stocks that have had 20-30-50-or 100% runs up on. Especially in a market like this. Because of this I can't really add to my CAT or XIDE holding.

Recently I bought two very decent stocks that have yet to run up significantly. DHR and AMGN. DHR is a conglomerate with decent management and an aquisition strategy which hasn't participated in the run-up but has not melted down either. I suppose stability doesn't pay as much as blind reckless business models in this run-up. AMGN is a laggard in the pharma area due to lack of recent wonder drugs. It's osteoperosis drug should get approval soon which will help out but the main issue is that it's revenues are acceptable as well as it's gross margins. It is not a sexy stock, but that's why it's still a good value.

So why haven't I added to SYT which has only moved up marginally. Actually Cramer is absolutely wrong in saying farmers will not pay for good seeds before paying for other things. Good seeds add to grop yield and often add to the price they can sell their crops for. Although I'd like to buy more just to spite him, I prefer diversity when I see multiple good values.

Which leaves my laggard, IXYS. Although I was recently dissapointed in their drop in sales, I still like exposure in this field and will look to buy at a lower price once management becomes confident that sales will accelerate again provided the price does not rise accordingly. All thinks in life are not certain and even i am fallible (although I still feel that I will do ok holding this position in the long run). 

I appreciate people who are interested in my positions and welcome any rational feedback or opinions on them. If you wish to buy any of these I suggest you check up on them thoroughly. I completely hold to the view not to take other people's word for the responsibilities in investment I should do myself and advise others to hold those views as well.

All other holdings of mine predate disclosure on Seeking Alpha, thus I will only feel the need to disclose them if I should decide to comment on them in the future.