Don't Throw Caution to the Wind With Your IRA

Currently, WEL sells at an enterprise value/EBITDA ratio of 4.9 times. This is about one half of the ratio for the median company in the oil services business. Therefore, I have decided to hold the stock until second-quarter earnings are released and then re-evaluate the situation. The real lesson to be learned here is to avoid $2.00 stocks with funny names.

Stock Movement

While last week was basically flat in terms of the major averages, I had several nice moves in my holdings. Amerisafe (AMSF Quote) was up 6.9% as it recovered back to near previous highs. This company sells at 10.6 times this year's earnings, while the median company in the accident and health insurance industry sells at 13.1 times. I view this stock as a buy.

Cal-Maine Foods (CALM Quote) was up 6.6%. I currently view this stock as a strong hold.

Parexel International (PRXL Quote) was up 7.3% and still seems modestly attractive at an enterprise value/EBITDA ratio of 12.8. Comparable companies are valued at around 15 times.

TBS International (TBSI Quote) continued its run and was up 10.3%. I view this stock as now close to fair value, and I will reduce my position this week.

Warnaco Group (WRNC Quote) was up 6.9% and was one of my best performers during the second quarter. I currently view this stock as a hold.

The Portfolio

The second quarter turned out to be a very good one for my IRA. It was up 11.2% compared with the S&P 500, which was up 5.8% (not including income). The complete list of my current IRA holdings is as follows:

Symbol	Name	Purchase Date	Cost	Price	Gain
Regular Holdings
ADPI	American Dental Partners	1/30/2007	$20.75	$25.97	25.16%
AHG	Apria Healthcare	11/16/2006	$24.42	$28.77	17.81%
AMP	Ameriprise Financial	12/18/2006	$55.09	$63.57	15.39%
AMSF	Amerisafe	12/18/2006	$14.18	$19.63	38.43%
CALM	Cal-Maine Foods	4/16/2007	$13.30	$16.38	23.16%
CF	CF Industries	5/3/2007	$40.57	$59.89	47.62%
CGX	Consolidated Graphics	5/1/2007	$76.88	$69.28	-9.89%
CHUX	O'Charleys	2/1/2007	$21.55	$20.16	-6.45%
GIB	CGI Group	3/9/2007	$8.52	$11.22	31.69%
INMD	Integramed America	2/6/2007	$11.47	$11.20	-2.35%
JDAS	JDA Software	6/8/2007	$19.04	$19.63	3.10%
KCI	Kinetic Concepts	2/6/2007	$49.75	$51.97	4.46%
LAYN	Layne Christensen	5/22/2007	$41.26	$40.95	-0.75%
METH	Methode Electronics	3/8/2007	$12.93	$15.65	21.04%
PRXL	PAREXEL Int'l	6/12/2007	$39.80	$42.06	5.68%
QD	Quadramed	3/19/2007	$3.06	$3.05	-0.33%
SCHL	Scholastic	1/3/2007	$36.23	$35.94	-0.80%
TBSI	TBS International	5/15/2007	$18.48	$28.40	53.68%
WEL	Boots & Coots	3/22/2007	$2.25	$1.73	-23.11%
WHQ	W-H Energy Services	5/17/2007	$60.96	$61.91	1.56%
WRNC	Warnaco Group	3/14/2007	$26.99	$39.34	45.76%
One Month Screen
CENX	Century Aluminum	6/15/2007	$54.40	$54.63	0.42%
DRS	DRS Technologies	6/15/2007	$54.20	$57.27	5.66%
KEYS	Keystone Automotive	6/15/2007	$41.80	$41.37	-1.03%
LGF	Lions Gate Entertainment	6/15/2007	$11.40	$11.03	-3.25%
URS	URS Corp.	6/15/2007	$50.24	$48.55	-3.36%
Performance Results As Of 6/30/2007				IRA	S&P 500
	Second Quarter			11.2%	5.8%
	Year To Date			20.8%	6.5%
	S&P 500 does not include income for latest quarter

Please note that due to factors including low market capitalization and/or insufficient public float, we consider American Dental Partners, Amerisafe, Cal-Maine Foods, O'Charley's, Integramed America, Quadramed, TBS International and Boots & Coots 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.