NEW YORK ( TheStreet) -- I'm making changes to the so-called S&P 500-Slayer Portfolio, which has easily beaten the benchmark U.S. index since I started it Feb. 10. The portfolio has risen 45%, compared with 28% for the S&P 500.
I recommended in my April 16 article to take "stock" of your equities on a continuous basis and forget the old-fashioned "buy and hold" strategy. So, in August, I advised investors to sell half of the positions and hold the rest. Now it's time to make some further recalibrations. For the remaining six stocks in my portfolio, here's what I would do: Pulte Homes ( PHM): Although it's one of the weakest in my portfolio, I still like it and, with housing stabilizing, I see a move higher. Set sell limit at $13. BRE Properties ( BRE): Pigs get fat and hogs get slaughtered. Sell at $31.85 and high-five your account statement. General Electric ( GE): I recommended it at $11.62 in February, recommended a hold at $13.75, and it's around $16.80 now. Even though it's up big and the temptation is there for profit-taking, this one still has more left, and I would put a sell limit at $19.50. Huaneng Power ( HNP): One of only two dogs in my portfolio, which tempts me to drop back and punt. But I love China energy stocks and, for now, I say grin and bear it. China Integrated Energy ( CBEH): I own it, I love it, and they just brought in a China heavyweight in Oppenheimer to complete a public secondary offering. I said if you could buy it under $7, do it. It's traded as high as $7.97, and volume is picking up nicely. If this stock isn't double digits by year-end, I will be shocked. ( Disclosure: I own this stock.)
Verizon ( VZ): OK, I give up. Sell at $30.30. I would add the following two stocks: Bank of America ( BAC): This is the first financial stock I have picked, and I may regret it. But looking at this company, I don't see how it can't succeed with a recovering economy. They are leaders in almost every market they serve. Patience will be key with this stock, and I would put in a limit buy at $16.50. QKL Stores ( QKLS): A cross between Wal-Mart ( WMT) and Kroger ( KR), QKL is one of the largest and fastest-growing chains of supermarket/department stores in Northeast China. And with a population almost equal to the entire U.S., revenue growth of over 100% a year, a net income margin of 9% (unheard of in the supermarket business), and plans for further expansion, this is one China stock that is worth owning. The downside is that it is thinly traded, although the company has filed to complete a public secondary offering, which, if successful, should have a dramatic effect on liquidity. Buy at $6.75. ( Disclosure: I own this stock.)