THE WIRED INVESTMENT PORTFOLIO
You can always count on October to be exciting, and last year's didn't disappoint. Persistent investors were rewarded by double-digit returns on all major indices. Our portfolio took off, gaining 13.83 percent, despite having 15 percent of the value tucked away in cash.
Institutions appear to be done with their tax-loss selling, and the hunt is on for companies that have been unfairly bludgeoned. I'm joining the party with Ciena. The optical-networking outfit is on fire, roaring back from a low of 8 1/8 to close at 21 13/16. And the high volume in this stock indicates that big – and possibly smart – money is paying attention to the company.
Parametric Technology, a maker of 3-D modeling software, also appears to be coming back. The former institutional darling announced Windows software to complement its existing Java-based Windchill product. So, I'm adding 7,500 shares to the portfolio.
Last, I'm buying an additional 7,500 shares of MMC Networks. Despite recent anxiety over projected near-term earnings, the company's numerous design contracts should prove it worthy of our commitment.
I'm selling BioChem Pharma to pay for the new positions, but don't worry – nothing's wrong. The FDA recommended approval for BioChem's hepatitis B drug. Despite the great news, the market for this stock is yawning, and I'm going where the momentum is.
– Jeffery Wardell (jwardell@hamquist.com)
| Company| Primary Business| Symbol| Shares| Last Trade 11/2| Current Value| Since Purchase
HOLDING
| Advanced Fibre | Telecom eqpt | AFCI | 15,000 | 11 7/8 | $ 178,125 | + 98%
| America Online | Online services | AOL | 3,000 | 134 7/8 | 404,625 | + 32%
| Cisco Systems | Network hw/sw | CSCO | 4,500 | 64 11/16 | 291,094 | + 61%
| Lucent Technologies | Telecom eqpt | LU | 2,000 | 83 1/4 | 166,500 | + 26%
| Microsoft | Software | MSFT | 2,000 | 105 13/16 | 211,625 | + 26%
| MMC Networks | Microchips | MMCN | 7,500 | 11 5/8 | 87,188 | – 52%
| PeopleSoft | Enterprise sw | PSFT | 4,000 | 23 1/4 | 93,000 | – 28%
| Pfizer | Pharmaceuticals | PFE | 1,500 | 108 1/2 | 162,750 | + 10%
| Qwest | Telecom service | QWST | 3,000 | 40 1/16 | 120,188 | + 3%
| SAP | Enterprise sw | SAP | 2,500 | 43 7/16 | 108,594 | – 28%
SELLING
| BioChem Pharma | Pharmaceuticals | BCHE | 8,000 | 21 15/16 | 175,500 | + 3%
BUYING
| Ciena | Optical networking | CIEN | 5,000 | 21 13/16 | 109,063
| Parametric Technology | Design sw | PMTC | 7,500 | 16 9/16 | 124,219
| MMC Networks | Microchips | MMCN | 7,500 | 11 5/8 | 87,188
Cash| $| 186,280
Portfolio Value 10/1| $| 2,047,252
One-Month Portfolio Performance+13.83%Russell 2000 Index| +10.51%
Legend: This fund started with $1 million on December 1, 1994. Profits and losses are reflected monthly, with profits reinvested in the fund or in new stocks.
The Wired Investment Portfolio (formerly TWIT$) is a model established by Wired, not an officially traded portfolio. Jeffery Wardell is a senior vice president executive financial services representative for Hambrecht & Quist LLC and may have a personal interest in stocks listed in the WIP. The opinions expressed herein are those of the author and not necessarily those of H&Q's research department. H&Q has not verified the information contained in this article and does not make any representations to its accuracy and completeness. Wired readers who use this information for investment decisions do so at their own risk.
| NEW MONEY
| Quote
| Halloween Excitement
