Bookkeeping: Morning Purchases

As mentioned earlier today, I cut back my 'insurance' versus my long exposure - the Ultrashorts by about 15-20% each - locking in some very nice profits over the last week, and expecting perhaps a potential positive reaction to King George when he speaks this afternoon after meeting with the invisible hand.

Of course the market can continue to tank but we have tons of support at S&P 1400-1405 and I don't expect that to break without a bounce first (as I type we are at S&P 1422), so we have somewhat limited downside (for now)

I am making some purchases this morning - below is the list and why

1. Research in Motion (RIMM) - series of buys between $109s and $106s. This company is already done with earnings, we have seen it and don't have any earnings risk going forward. After beating estimates a few weeks ago [Research in Motion - Nice Results] the stock gapped up from low $100s to low $120s, where I dumped some shares. I am now buying those back plus more. Along with Apple (AAPL) this is going to be one of the few secure areas of growth, and again RIMM has yet to begin its assault on emerging and foreign markets. The stock did break its 50 day moving average, around $108, but I am confidant enough in the business to ignore that at this time. Downside should be to $100 where I will add more. I took this up to a 2.6% position (from 1.0%)
2. I added some Apple (AAPL) in the $189s - it was sitting at $200 a few days ago, and I am hoping for a pullback to $184 (50 day moving average) to add more ahead of what I think will be a monster quarter (earnings).
3. I started a new position in Brazilian oil giant Petrobras (PBR). I have been chasing this stock for weeks on end, and it just continues to go up. After peaking near $119 yesterday I started my position in the $109s. I am hoping for a further pullback to $102 where I will add more - this is just a small starter position of 80 shares or 0.7%, and I also own it through my smaller stake in iShares Brazil (EWZ) in which it is a huge component. With the recent discoveries, this is one of the few companies that will be able to increase production in a world of continued energy shortages. Earlier posts on Petrobras here.
4. Coal stock Consol Energy (CNX) - I've been waiting for some pullback in this name after cutting the name down (locking in profits), so I am beginning rebuilding here as the stock fell to its 20 day moving average. I added here in the $65s and hope to see a pullback to the $62 area which is near its 50 day moving average, where I will add in larger scale.
5. New Oriential Education (EDU) - I added in the low $81s. Strange move today, up in a bad market. With earnings coming on the 15th of January this might be signaling to us to expect some good things. Either way I don't have enough exposure to the name (I was down to 1.2% of the fund) so I added more today - this is one of my favorite Chinese stocks but gosh darn expensive.
6. Infrastructure stock McDermott (MDR) - this was once my largest holding (way back in the day - August). After an earnings report which people found issue with, the stock tanked and I have been slowly building up this position - it performed very well yesterday as the infrastructure stocks ramped and with todays nearly 7% decline I decided to add more to this already sizeable position ($58s). The stock is still above its 50 day moving average ($57) - if the market continues to tank I don't expect that level to hold, but it's been acting quite healthy and this is one of my favorite groups.
7. Crocs (CROX) is acting like it's going out of business. In fact all retail stocks are. I have been hesitant to add much more but with the stock now approaching 07 lows post earnings implosion (mid $30s), you'd expect some support. I am adding in 2 layers here in the $34s with expectation to sell these lots in the upper $30s. I still really like the story here, and I think people are missing the international expansion opportunities but you have to respec the price action which has been miserable of late. Again, this is not the type of chart I usually buy because stocks below their moving averages can stink for months/quarters on end, but valuation is downright cheap and if I can flip out part of this position near $40 that would be a nice 10%+ gain.
8. Continuing to build up the Illumina (ILMN) position discussed yesterday - now we are at the 50 day moving average ($57), as I wrote yesterday - and this is the type of set up in a chart I like. A growth story, pulling back to key support. The risk is the stock breaks through this support level, but that is part and parcel with a strategy of buying stocks pulling back to key support levels - which is different from today's in vogue style of buying stocks at 52 week highs. Added in the $57s.

On my wish list?

1. Fertilizer - hasn't pulled back enough, but might never do so with Mosaic (MOS) set to report next week
2. Solar - not even close to a pullback
   
3. Oil service names I outlined earlier this week - both Cameron International (CAM) and Smith International (SII) are close to areas I'd start new positions. I am monitoring these two closely as they pull back ... I'd like to see some more weakness though.

Whew... this is the most buying I've done in a while...

Long all names above in fund except Cameron International and Smith International; long Research in Motion and Illumina in personal account