IRA Investing: Too Much Complacency

Until these indicators actually turn bearish, I am maintaining my basically neutral market posture, and I continue to look for new ideas to present themselves. My cash position is governed by my ability to find new individual stocks to buy and is currently at the level of 32.8%.

Market leadership remains a problem, and this lack of leadership goes along with a neutral posture. It seems to me that we are in a transition where the old leaders like commodities are being replaced by some other as yet unidentified group. It is hard to forecast what the new leadership will be, but, almost certainly, it will not be financials. Technology is a possibility, but it is really too early to tell.

Sales and Purchases

I had no transactions in my IRA last week. In spite of my rather high cash position, I had a good performance week with stocks like Altra Holdings (AIMC - commentary - Cramer's Take) and Open Text (OTEX - commentary - Cramer's Take) up by more than 10%. I still consider the former stock a buy while the latter is a strong hold.

U.S. Physical Therapy (USPH - commentary - Cramer's Take) had a good week and was up almost 10%. I will be selling that stock this week because I have held it for seven months, and it no longer appears on my screening system as a buy.

Integral Systems (ISYS - commentary - Cramer's Take) was up 6.2% last week after the company declared a two-for-one stock split. I have now doubled my money in this holding, and it seems a bit ahead of itself at current levels.

The Portfolio

The table that follows shows all of the current holdings in my IRA as of the end of last week:

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Altra Holdings, Integral Systems, Life Sciences Research, LS Starrett and U.S. Physical Therapy to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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At the time of publication, Moore was long Altra Holdings, Conmed, Complete Production Services, Emcor Group, CGI Group, Integral Systems, Layne Christensen, Life Sciences Research, Open Text, Stepan, LS Starrett, Stone Energy, Sauer-Danfoss, Synnex, SPDR Trust, Sybase and U.S. Physical Therapy, although positions may change at any time.

Richard Moore, CFA, has 40 years of experience in various facets of the investment business. He has been employed by banks, mutual funds and investment advisory organizations during his career and has also owned retail and service businesses. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Moore appreciates your feedback; click here to send him an email.