It has been almost three months since my last post. Since my last update, the S&P500 has been somewhat volatile. On June 12, it closed at 946.21, up almost 10% since my last update. However, since then it has been slowly coming down and right now it is up only 1% since April 16th.

We made some changes on our holding while the market was up. We closed our position in AKS and X since they were up significantly. AKS in particular was up between 56-65% for us. We wanted to build some cash for other buying opportunities.

Lately, we have been on the lookout for good small-cap companies. They tend to be more volatile, but when the economy starts to recover, they usually tend to go higher. We do not know when the economy and the stock market will recover, but at these prices we hope that there is not much downside risk. Therefore, we started our position on small-caps with the following companies:

  • OME – Omega Protein Corporation
  • KND – Kindred Healthcare, Inc.
  • AMN – Ameron International Corporation
  • AIR – AAR Corp.

We also wanted to be more exposed in the pharmaceutical industry (since that’s my background). So we bought a biotech company called OSI pharmaceutical (OSIP), a more traditional pharma comapy FRX and a stable JNJ.

Now that the second quarter earning reports have started to come out, we suspect the market will be quite volatile. Therefore, we are looking for good buying opportunities with whatever cash we have left.

Here is the list of current holdings with average price paid as of July 10th, 2009.

picture-2