IRA Investing: A Scan of Current Holdings

In this second installment detailing my approach to managing my IRA portfolio, I'll list my current holdings, discuss my recent winners and losers, review the account's past performance and indicate which actions I might take. Please remember that this should not be considered a recommendation to buy or sell any security mentioned here.

When I look for portfolio candidates, I begin by screening stocks based on valuation, as measured by the price-to-sales ratio, and momentum, as measured by relative strength. After researching these ideas, I make decisions about what to add to the portfolio. Here are the stocks now in my IRA:

My big winner has been Hansen Natural (HANS - commentary - Cramer's Take), a California soft drink and juice company that I've written about in a previous RealMoney column. Its recent quarterly results were very impressive, with revenue up almost 50% and earnings per share tripling. The company's strong showing in the energy-drink market should continue for at least the balance of the year. This stock alone has contributed significantly to my portfolio's overall results this year.

My problem stocks, which have been hurt pretty severely in this latest correction, are Benchmark Electronics (BHE - commentary - Cramer's Take), Metal Management (MTLM - commentary - Cramer's Take) and John B. Sanfilippo & Son (JBSS - commentary - Cramer's Take). The first two companies reported results that have met or exceeded expectations, but because of market factors -- including weakness in technology stocks and fear of a slowdown in China -- their stocks have been punished. I'm planning to hold them because their problems are not company-specific.

In the case of Sanfilippo, good quarterly revenue results were reported, but earnings were down because, as the company explained, costs increased and gross margins declined. This indicates a lack of pricing flexibility on the company's part, which is problematic, but Sanfilippo has indicated that it will be raising prices. I've decided to hold the stock and hope for a margin stabilization.

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At time of publication, Moore was long Atlantis, AMX, Benchmark, FPIC, Hansen Natural, Sanfilippo, Nordstrom, Labor Ready, Metal Management, ePlus, Res-Care, China Petroleum, TBC, United Auto Group and Wesco, although positions may change at any time.

Richard Moore, CFA, is the owner of QB Accounting Service in Angel Fire, New Mexico. Prior to that, Moore was manager of Taos Financial Strategies, working with a varied client list doing investment management, accounting, financial planning and taxes. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. While Moore cannot provide investment advice or recommendations, he welcomes your feedback and invites you to send your comments to [e-mail].