State of the Stock – February

This February we got quite a bit of money from our tax return. As discussed, I took that return and invested quite a bit of it. The idea was to minimize the commission fees, by investing hundreds at a time using the 3 Months to Profit formula. So I did. Granted, it’s a bit of a misnomer calling it that, because it doesn’t guarantee anything. As you can see here, stock prices fluctuated, and profits are all negatives.

Another reason why you’ll notice a change between INTC and INTC from January, is because I realized in doing my math that I was figuring the profit incorrectly. I had been “re-adding” the commission to the value of the profit field, but I re-added about 200% more commission than I needed to, thus initially creating a false profit. This is why I don’t pretend to be an expert, or that anything you see in my portfolio is solid gold advice.

That said, I also let it be known when I make a mistake, and when it’s fixed. So here are the updated numbers as of this morning. End of day values may change, but as of 11am these were accurate within a few pennies.

TEU 126.4225 65.0221 (-$5.98)
BAB 13.682 4.0772 (-$26.11)
INTC 3.0778 3.0778 (-$9.94)
O 11.6080 1.5408 (-$8.27)
PGH 40.7213 0 (-$10.95)

State of the Stock – January

So I decided to do a run down of my current situation with my stock portfolio, where I have decided to change how I buy my stocks. Since I made that decision, I have purchased no new stocks outside of the automatic dividend reinvestment. I can already see growth, and potential with this method of investing, in a short period of time.

Some of you may wonder how I get my figures, and I have explained this in the past. In short, I do not consider dividends to have a dollar value, simply because they are free to me, and cost no commission to reinvest, thus they are a zero dollar amount stock share. For this reason, the value of the Average Price Per Share can, and will, creep closer to $0. This allows me to build up a portfolio of solid dividend shares, sell off all of the shares that I have purchased to that point, a piece at a time, and eventually leave myself with a dividend of $0 share stocks.

This is akin to a gambler walking into a casino with a $100 bill, winning at roulette for $500, and then depositing that $100 into his account and playing with the $500. Is it really losing money if you lose it all? Of course, it is. But it hurts much less, because you’re not actually at the negatives, you’re at the break even point.

TEU 65.0221 65.0221 $6.84
BAB 4.0772 4.0772 (-$17.40)
INTC 3.0778 3.0778 $13.24
O 4.9486 1.5408 (-$40.69)

The Capitalist Cares Stock Portfolio

So I decided that, since I talk about it so often, I might as well show you my portfolio. The link I’ll post below is a direct link to the Google Doc that I use for my own stocks. I buy / sell through ShareBuilder, but I found that they don’t figure in sale commission into their own profit calculations, and once you sell it removes the stock from all equations entirely. I didn’t like that. So I started putting together my own system. This system keeps track of all profit / loss, portfolio-wide, and as long as you never delete a sheet, you can track the total profit / loss forever, and use one investment to cover the losses of another, and get an idea of total portfolio value.

Currently you’ll see that my value is in the negatives. This may appear bad for someone who’s sitting here with the hubris to talk about finances, but it’s actually just plain math. I spent money to purchase stock, and in those instances you are starting in the negatives, not at 0. The first step to profit is finding your break even point, the next step is finding the point where you can cash out with shares left over. From there, you can get your risk out, and let the rest build up as much as you want.


One major thing you’ll notice is that I’m heavily invested in only a single stock. That goes against all the advice on diversification, and I’m well aware of that. I have faith in the stock, though. It has a proven track record. I also have a back up plan, which includes BAB and INTC, which you’ll also see in my portfolio. Will I be revisiting TEU? I haven’t decided yet. It’s a very volatile stock, which has quite a bit of risk associated with it, but I can fit it into a 6 months to profit formula fairly cheaply, so I might consider it again.