Floyd's Shifty Fifty Portfolio-An Introduction

Floyd’s “Shifty 50” Stock Portfolio

It’s a simple theory. My Dad, as a student and later the only licensee of Richard D Wyckoff, famed trader of the 1920’s, instructed me on the 50 positions he studied and taught, and I began hand charting point and figure charts when I was 10 years old. My Dad was trained in “manage little perfectly” and taught me to be a student of the “specialty” not the “all”.

http://en.wikipedia.org/wiki/Richard_D._Wyckoff

Much like those using Dow theory I work to project the Dow over the short term, and watch sectors for being overbought/oversold.

I believe it is easier to be EXCELLENT at a few things, than “kind of good” at some things.

I do not over read the news or subscribe to financial newsletters that recommend stocks, deciding instead to focus on up to 50 investments, investing in no more than 10 positions at any one time.

Blue Chip portfolios are online, showing the three core categories in which I invest. We are trading together.

Core: These are longer term IRA, SEP, retirement or “buy and hold” investments. Most pay dividends. Only a few are “funds”, as most mutual funds underperform the market.

Speculative: Typically here BCO will short or take long, or buy options; on specific stocks we see as of extreme value (underpriced) OR headed to breakout.

Real $: Gold, silver, platinum, and U.S. Treasury Bills we consider cash. It is often up to 50% or more of our portfolios.

Oil/Energy

Chevron Symbol: CVX

http://en.wikipedia.org/wiki/Chevron_Corporation

Rationale: Chevron has reserves, and a long-term business plan that can environmentally support change, and still profit.

Exxon Mobil Symbol: XOM

http://en.wikipedia.org/wiki/ExxonMobil

Rationale: Exxon is the big ugly. It mirrors the oil distribution/refinery market well

DXO-Crude Oil 2X Bull Fund Symbol: DXO

http://www.powersharesetns.com/portal/site/etns/crudeoil

Rationale: This is a 2 X Bull fund on crude oil. We play this as stock, as it’s quite low priced, and very volatile.

United States Oil Fund Symbol: USO

http://www.reuters.com/finance/stocks/overview?rpc=66&symbol=USO

Rationale: This ETF holds a variety of oil and oil transport issues, and we often trade as a put or call.

ITC Holdings, Inc Symbol: ITC

http://www.itctransco.com/

Rationale: Really study the website sand learn the transmission service this company leads. We think they are the future, and we are trading for the long term.

Oneok Partners LP Symbol: OKS

http://www.oneok.com/partner_default.jsp

Rationale: ONEOK Partners, L.P. is one of the largest publicly traded limited partnerships, and is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of the nation's premier natural gas liquids (NGL) systems, connecting much of the natural gas and NGL supply in the Mid-Continent with key market centers.

Sold this position 7/31 for up to $5.00 per share profit. Sector not growing.

Will reenter

Van Eck Market Vestors Coal ETF Symbol: KOL

http://www.vaneck.com/index.cfm?cat=3192&tkr=KOL

Rationale: This ETF invests in over 50% of the largest coal producers across the world, and has a low expense ratio. It’s the perfect way to “play” Coal”.

Healthcare

Shares Dow Jones U.S. Healthcare Sector Index Fund Symbol: IYH

http://www.reuters.com/finance/stocks/overview?symbol=IYH.W&rpc=66

Rationale: Healthcare is “it”. We follow this sector for long term holds, and for puts and calls.

United Healthcare Symbol: UNH

http://www.unitedhealthgroup.com/main/default.aspx

Rationale: United is a terrible company that I hate immeasurably. They’ve destroyed healthcare, and are one of the largest Medical Criminal Corporations out there.

We follow them as a stock, and puts and calls.

Health Management Systems Symbol: HMSY

Rationale: This company provides cost management services for government sponsored health programs. 80% of its revenue comes from Medicaid. It’s involved in 37 state Medicaid clients, and 100 Medicaid managed care plans. With our current health insurance situations it’s a money machine.

http://www.hms.com/

Entertainment

McDonalds Symbol: MCD

http://www.aboutmcdonalds.com/mcd

Rationale: McDonalds builds ugly buildings worldwide, advertises “FAT food” to kids, and serves a terrible product.

Everything about their model of “food crime” is perfect, and we are a long-term holder of both stock, and call.

Their foray into “designer coffee” concerns us, and is the only negative on the stock. Buy grease and little toys.

Disney Symbol: DIS

http://corporate.disney.go.com/careers/who.html

Rationale: Disney is entertainment. They do it right. As America comes from recession entertainment will prosper, and Disney is the perfect “American Dream” company. A very conservative investment long term.

Smith and Wesson Symbol: SWHC

http://www.smith-wesson.com

Rationale: America believes in guns. It’s like entertainment to me, as we must protect ourselves, while we grow fatter. This is my sin stock. Sales and earnings are bound to go up as America arms itself by the TV.

YUM Brands Symbol: YUM

http://www.yum.com/

Rationale: Pizza Hut, Taco Bell, and KFC-it’s simple. Terrible products, horrible for you, and loved worldwide. We’re impressed with their international expansion. They control costs well. We play this as a long-term stock, and put and call.

YUM is often replaced in our portfolio for extraordinary gambling, video, or other entertainment companies.

Important Note: We are NOT sharing a complete portfolio, but showing you the model of our portfolio. Blue Chip Options may or may not have a current holding or position. These are simply stocks we follow.

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