More Buys

Dear Diary,

I bought some Southeby's (BID) yesterday at $10.19 a share, based on projected earnings per share of $2.82 for 2009 and a widening Net Profit Margin. Because of Long term Debt, this is not a Holy Gail but is trading just above Working Capital of $9.88 a share, according to my most recent "Value Line" presentation.

I also picked up shares of Stryker (SYK), a pure Holy Grail, but it is trading at $33.22 at purchase, just above 10 times projected earning per share for 2009 of $3.15. The widening Net Profit Margin tells us that an upward pressure is on the stock price when the price is at 10 times earnings or below.

I sold the Decker's (DECK) at $56.89 yesterday, a 19% approximate gain over the 10 day holding period.

Gene

Decker's Outdoor CFO Resigns

Dear Diary,

I just read that the Chief Financial Officer of Decker's Outdoor (DECK) "abruptly resigned" on March 23, 2009. This can't be good news, so I've put in a sell order for the entire position.

These Holy Grail situations can turn on a dime, but a competent investor can still profit, as it appears my sell price will be about $10 a share above what I paid a short time ago.

Gene

Deckers Outdoor Purchase

Dear Diary,

I bought a substantial position in Deckers Outdoor (DECK), today, for $47.92 a share, based on projected earning above $8 a share for 2009 and on the Holy Gail criteria. This is a pure Holy Grail: no debt, double digit Net Profit Margin, widening Net Profit Margin, upward trend in earnings, double digit Share Holder Equity and Return on Total Assets. Everything looks perfect, but it can change in a moment. Such is the nature of the Holy Grail approach.

General Electric (GE) is my big Buffett-Graham Net Quick Asset Deal, and it's up a couple of bucks from my original purchase price.

Gene

More GE

Dear Diary,

I bought more General Electric (GE) on 3-4-09 at $6.63 a share, bringing my average purchase price down from $18.79 a share to $7.18 a share.

The DOW is trading at around 6500.

Gene

GE to Cut Dividend

Dear Diary,

General Electric (GE) announced today that it will cut its dividend from $0.31 a share to $0.10 a share later this year. I like the move, as this will help the balance sheet in time.

Jones Soda (JSDA) is up 167% from last month's low of about $0.30 a share to $0.80 a share today on news of a new tea to be distributed. Net Quick Assets is listed at $0.60 a share, lending credibility to the Buffett-Graham Net Quick Asset Deal. My average buy price is $0.81 a share.

Gene

Time For An Update

Dear Diary,

I've been busy the past month, so I'm taking time to play catchup.

First, I bought more Medtronic (MDT) on 1-28-09, bringing my average purchase price down from $49.85 a share to $36.86.

Second, I bought more Heely's (HLYS) at $1.99 a share, bringing the average purchase price down to $2.16 a share from $3.28.

Lastly, I saw the ALO Cash on Sale Arbitrage finally pay me on 1-30-09 for a profit. I find that this Arbitrage approach has significant downside and little upside potential, so I'll probably not do too many of these in the future, unless I see significant upside on a deal.

I continue to have faith in my Buffett-Graham Net Quick Asset Deals, and Holy Grail remains outstanding.

Gene

Market at Lowest Point in Dozen Years

Dear Diary,

The talking heads are saying that "the Market is at its lowest point in a dozen years." I'm trying to get more cash into General Electric (GE) at $8 a share, a serious discount to Net Quick Assets of $22.00 and change, according to "Value Line." If this isn't Armageddon, I'll be a rich man on the other side of this crash.

Gene