My first reaction after looking at ...

My first reaction after looking at your club's portfolio is that you really have brace portfolios. The first can be described as a rather conventional, fairly azure chip equity portfolio with a leash of mutual funds thrown in. I assume your objective with these stocks is a superior answer from growth in the equity market. In that case, these holdings are, for the in the greatest degree part, adequately diversified and account for about two-thirds of your assets.

About one-third, however, consists of more [i]or[/i] less lesser-known juniors primarily high-tech companies or the resource sector. Speculative might best describe this portion of your assets.

About 32% of your portfolio is invested in foreign securities. Half of that is in a single stock, Wal Mart.

RECENT RESULTS

Your issues have been impressive. You have been contributing $525 a month for about five years for total contributions of $27225 (Since not many of your positions are more than single in kind year old and the costliness base of your current portfolio is nearly $55000 I would assume that your sodality trades actively.) Your market value late in March, 1995 was $66265 Many professionals would repine at this return.

It would appear however, that your month to month responds are very volatile. Indeed, les than a year ago it appears that the market value of your portfolio was in exces of $80000

You note that the members of your coterie have expertise in a number of industries including technology and manufacturing. This may explain your overall succes In the inefficient stock markets, typical of technology stocks, the investors who first discover undervalued companies generally do highly well.

ANALYSIS

I assume that you will continue to invest a major portion of your assets in the more speculative last of the market. If that is the case, I insinuate that you set a more evenhanded policy regarding diversification. Cases in point are your holdings of Pinetree Capital and Park Meditech. Pinetree was your largest single purchase, just through $10,000, while your Park Meditech holdings preciousness only $250.

I assume that when you bought Pinetree you thinking it was a "sure thing" while you idea Park Meditech was a bit of a lengthy shot. Well, the long missile paid 12 to one and your holdings now have a market value of more than $3000 Your Pinetree, however, has declined by means of 75%. The moral of this story: if something is worth buying, purchase enough for it to be worthwhile--without over-extending yourself upon a single investment.

This also applies to the senior portion of your portfolio. Your Wal Mart holding is simply too big a piece of the pie. I hint you consider selling part and re-deploying the cash elsewhere.

You gripe [i]or[/i] grip two mutual funds, Royal Trust Asian vegetation and Royal Trust Energy permanent fund The Asian growth fund is a dutiful choice for exposure in the volatile Far East markets. I assume you have chosen the spirit fund as a means of getting diversification. That's a bit surprising given your aggressive phase in the rest of the portfolio. Are you holding the supply to gain expertise by following the permanent fund manager's activities? Do you plan to invest coin directly in this sector of the market! Alternatively, is this a trading position in succession the oil market using a no-load mutual permanent fund to avoid commissions on trades?

SET an TARGETS

In your letter, you indicate that you have fix target prices for three of your holdings. Targets based forward future earnings and price earnings (P/E) multiples make a hap of sense and act to discipline your portfolio decisions. The skill is in setting realistic targets. A $60 target for a $6 stock is typically not realistic.

You might consider setting targets for all your holdings and monitoring them constantly. For example, you must have had a target in mind when you bought the Pinetree holding. As the price declined from from one side of to the other $2 to $0.50 a share, I assume you re-analyzed the situation. Did you change your target? Or did you decide that the stock was equal a better value at 050?

STOCKS TO STUDY

Juniors

The criteria for succes in the more speculative cessation of the investment spectrum are in many cases the same as in with a long face chips. Your portfolio should be diversified, and your reasons for buying, holding, and selling should be based forward thorough analysis.

There is no shortage of junior companies in Canada. And the fact that the major brokerage houses do not, as a government follow the juniors is an advantage for the individual investor who can benefit from market inefficiencies. Sorting by the agency of the maze can be time-consuming. However, there is undivided short cut.

Successful mutual foundation portfolio listing often can be an first-rate source of investment ideas. There are brace Canadian mutual funds, Multiple Opportunities capital and Special Opportunities Fund (both based in British Columbia) that have had one high returns over the years on investing in higher risk securities. However, hold fast in mind, these funds are without a doubt the most numerous volatile in Canada.

A junior high tech stock to await at might be Legacy, which trades forward the Alberta exchange and is involved in data storage technology.