m@rketocracy


Sold out of BIOF. With the ethanol fuel subsidy ended, the premise for holding this stock evaporated. Took a 19% loss.

Replaced it with uranium URA an ETF. Gain a bit of diversification, plus some exposure to energy, in, currently, a hated and despised industry. Energy will, and already is, a massive issue.

There are currently 62 modern and efficient power plants being built all over the world including 27 in China, 5 in India, 11 in Russia, and even 2 in Japan. In fact, uranium is fast approaching a supply-demand deficit and a possible shortage in uranium ore.

There are 443 operating reactors, not including new plants coming online, which need over 180 million pounds of uranium annually. The world produces only 130 million pounds per year. Already there is a shortfall of 50 million pounds which is being filled until 2013 by the Russian Highly Enriched Uranium Agreement. The Russians have made it clear that they will not renew this agreement after 2013, as they will need the fuel for their own needs.

Meanwhile, the Nuclear Regulatory Commission which oversees nuclear power in the US has been conducting special investigations into nuclear reactors. The Chairman of the NRC has expressed confidence in the safety of the American Nuclear Reactors and US utilities are purchasing all available supplies of ore.

Additionally the French Prime Minister recently said, “We think nuclear energy is the solution for the future.”

This is a possible opportunity.

TOP HOLDINGS
Company name % Net assets
Cameco Corp 20.24%
Uranium One, Inc. 13.73%
Paladin Energy Ltd. 8.99%
Extract Resources Ltd. 6.33%
USEC 5.37%
Kalahari Minerals PLC 4.68%
Uranium Resources, Inc. 4.68%
Denison Mines Corporation 4.34%
Mantra Resources Limited 4.12%
Energy Resources of Australia Limited 3.77%

I think tomorrow I might switch out of TAP, which is a bit staid for this ETF.

LMLP is up about 15% today. I would like to see it back to it’s recent highs around the $6 mark.

Have simply swapped on a dollar for dollar basis JACK for ARRS

I didn’t actually copy the non-compliant notes. However, after my purchase of BIL, I am now compliant across all categories. This is important in that if you want to crack the m100 or m10 you will have to be compliant to receive a ranking.

your current compliance report card right curve

Rule: Period: Today

* You cannot purchase stock such that it will increase a position more than 25% of your portfolio.

Always Pass

* No one stock can exceed 25% of your portfolio assets.

Majority of Quarter Pass

* You must be at least 65% invested.

Majority of Quarter Pass

* Half your portfolio must be made up of stocks of 10% (or less) of your portfolio assets.

Majority of Quarter Pass

* Excessive margin.

7 days/Quarter Pass

CASH COMPLIANCE
Your Portfolio Value ………………….$1,021,847.76
Your Current Cash Value …………………$350,082.04
Your Cash Percentage ………………………34%

M@rketocracy maintains a number of rules to maintain compliance, and hence gain a ranking:

There are a few simple rules to remaining compliant:

1. You cannot purchase a stock so that it will increase your position to over 25% of your portfolio‘s value. If you violate this rule, your fund’s effective inception date will be reset to the date that you bring the find back into compliance with all compliance rules, not just the 25% rule

2. If a sub-25% position rises in value above the 25% threshold (without additional purchases), your fund will be out of compliance until you sell of enough to bring it below the threshold. (However, your inception date will not be reset.)

3. You may only hold up to 35% if your portfolio‘s value in cash. The other 65% (or more) must be invested in stocks. Real fund managers are paid to invest, not hold cash, and so the SEC requires that they meet this cash rule — hence we also require you to follow this rule a majority (51% or more) of the time.

4. Half of your long portfolio may be in positions that may not exceed 25% of the value your total portfolio value. That means that you can have two 25% positions taking up that entire half of the portfolio, or, you can have five 10% positions (since none exceed 25%).

5. The other half of your long portfolio may be in positions that may not exceed 10% of the value your total portfolio value. At the least, this means that you would need to hold 5 long positions worth 10% each. However, you can (and likely will) hold a few more positions to make sure you have some breathing room below the 10% threshold.

6. Negative cash balances may not exceed 5% of total portfolio value. If this happens for more than 7 days per quarter, you are out of compliance. That means that you may not spend more cash than you have to buy stock — or in other words, you may not use margin.

I have highlighted my problem. Currently I am holding 40% in cash. This is largely due to the time I started the Fund in April, which was pretty much the top of the market, hence I really didn’t want too high an exposure to a potentially falling market, which has indeed been the case.

Therefore I need to find some vehicle that I can hold about $60K in that has as low a volatility as possible, reasonable liquidity and won’t go bust. This will take me below the compliance rule. Any ideas, just leave in the comments section. I looked at IRX which is the 13 week Treasury Bill ETF – zero volume, and crazy volatility!

Update

Problem solved [at least for the moment]

Want to break into the Top 10? Entries start at 22% compounded over 5yrs. This chap is #1 although he’s going into meltdown mode currently.

Most likely due to his exposure to Chinese burritos

Symbol Name Price Shares Value % Fund
XIN Xinyuan Real Estate Limited Sponsored American Deposit Receipt
JKS JinkoSolar Holding Co Ltd
GY GENCORP
JGBO Jiangbo Pharmaceuticals Inc
CNIT China Information Technology I

Looking at his returns, a huge chunk came after 2008. His fund just exploded in this period. Although saying that, all the funds pretty much show lumpy returns, I have yet to see Madoff types of equity curves.

Enjoying this one. Sold some down today.

Very early days, but, still showing a profit. I would expect to go into drawdown at some point soon as the market is looking pretty close to a collapse. This is the latest update.

SVU is without a doubt, the biggest drag on the portfolio. I also think it has great potential. I remember shopping at Lucky’s back in the early 1970’s with my mum. There you have it, emotional attachment.

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