inMessment Game – Third Quarter Results 2011

The third quarter of 2011 has ended. Time to review my inMessment Game results and see how I have done. To see earlier results, click the following links:

First Quarter Results 2011
Second Quarter Results 2011

I started the inMessment Game on Investopedia in December of 2010. The game now has a grand total of 9 players including me. Now is a great time to join the game!

Here is what you will see in this post:


inMessment Numbers as of September 30, 2011

The third quarter was horrible quarter for the market as a whole. It was bad for me as well. I lost more than $4,300 from Q2.

  • Q3 Starting Account Value: $26,802.89
  • Q3 Ending Account Value: $22,482.94 (Down $4,319.95 (-16.12%) from Q2 2011)
  • Annual Return: -12.23% (APY)
  • Number of Securities In Portfolio: 13
  • Trades this Quarter: 2
  • Available Cash: $657.52


Comparison to Benchmark – The S&P 500 Index

The benchmark I have chosen to compare my results to is the S&P 500 Index. This is a broad index of 500 of the top US companies. Many investors and firms use this index as a general benchmark.

To make my comparison easier I have maintained my inMessment Game portfolio in a Google Finance portfolio as well. This is a little extra effort but I can get the chart shown below from Google and simply check a check box to compare it to the S&P 500 Index.

The Blue line is my inMessment Game portfolio. The Red line is the S&P 500 Index.

Here is the Year-To-Date chart. YTD, the S&P and my inMessment Game portfolio are down near 10%. From time to time the inMessment Game portfolio is doing slightly better than the S&P Index. At the end of the third quarter there are just about even.

The Good

In the third quarter there was not much good. But three holdings are notable.

Range Resources Corp. (RRC) has had a great year. It even hit a new 52-week high in Q3. I added RRC to my portfolio back in January for $44.70. I sold RRC in Q3 on September 21 for $69.00. More than a 50% return.

Nike (NKE) was my best performer in in Q2 after being in my Ugly list in Q1. At the end of Q3 Nike is down but still holding positive by 5.49% in my portfolio.

iShares Silver Trust ETF (SLV) has had a great run this year but got slammed in late September. I added SLV in Q1 at a low of $27.74. After selling RRC in September, I bought more of SLV at a price of $29.20 on September 26. At the end of Q3, SLV was holding onto a positive gain of 1.44% in my portfolio.

It is a sad quarter when 1.44% is in the Good list.

Name Symbol Last price Shares Mkt value Gain %
Range Resources Corp. RRC $69.00* 25* $1,725.00 52.99%
NIKE, Inc. NKE $85.51 25 $2,137.75 5.49%
iShares Silver Trust (ETF) SLV $28.91 75 $2,168.25 1.44%

*25 shares of RRC sold on September at $69.00



The Bad

For my bad list this quarter I am listing those that are down less than 10%. Unfortunately, this is only three holdings. This means the rest of my holdings are down in the Ugly section.

Name Symbol Last price Shares Mkt value Gain %
VMware, Inc. VMW $80.38 22 $1,768.36 -3.71%
Medtronic, Inc. MDT $33.24 30 $997.20 -8.85%
SPDR S&P 500 ETF SPY $113.15 20 $2,263.00 -9.52%



The Ugly

Market Vectors-Coal ETF (KOL) is once again my worst holding for Q3. It was here in Q2 as well. This is where the Buy-And-Hold strategy really hurts! KOL is down nearly 40%. I will stick with my strategy and see what I can learn.

ProLogis (PLD) is very volatile as a REIT. I am not surprised it is one of the lowest at this point.

BlackRock, Inc. (BLK) is a bit of a disappointment for me. I was hoping for a little better holding but I will do the holding myself for now.

The thing that really hurts is four of my “core investments” have also been slammed hard. This shows that my portfolio is very volatile. Some call it aggressive.

Name Symbol Last price Shares Mkt value Gain %
iShares Russell Midcap Index Fund (ETF) IWR $88.25 25 $2,206.25 -12.69%
iShares S&P SmallCap 600 Index (ETF) IJR $58.54 37 $2,165.98 -14.38%
iShares MSCI EAFE Small Cap Index Fund SCZ $34.94 25 $873.50 -15.79%
Rydex S&P MidCap 400 Pure Growth ETF RFG $73.19 30 $2,195.70 -16.44%
BlackRock, Inc. BLK $148.01 10 $1,480.10 -17.27%
iShares MSCI Emerging Markets Indx (ETF) EEM $35.10 54 $1,895.40 -25.12%
ProLogis PLD $24.25 44 $1,067.00 -23.87%
Market Vectors-Coal ETF KOL $30.36 20 $607.20 -39.89%



Major Market Events

The big event for the third quarter of 2011 seem to be the European debt crisis. This continues to weigh heavily on the world markets.

Along with the European troubles the US has troubles of its own. Debt is out of control and the job market is stagnating. It is about one year from then next presidential election so the political parties are fighting for positions rather than fixing issues.

At this point I am hoping for a better fourth quarter!!



Full inMessment Game Portfolio

Here is the full portfolio as of September 30, 2011. I have categorized the investments in the following way:
Core: Long-term stable investments that will not change often.
Sub-Core: Still long-term but may trade more often.
Opportunity: Long or short-term trading opportunities.

inMessment Game Portfolio As of September 30, 2011

Name Symbol Last price Shares Mkt value Gain % Purpose
SPDR S&P 500 ETF SPY $113.15 20 $2,263.00 -9.52% Core
iShares Russell Midcap Index Fund (ETF) IWR $88.25 25 $2,206.25 -12.69% Core
iShares S&P SmallCap 600 Index (ETF) IJR $58.54 37 $2,165.98 -14.38% Core
iShares MSCI Emerging Markets Indx (ETF) EEM $35.10 54 $1,895.40 -25.12% Sub-Core
iShares MSCI EAFE Small Cap Index Fund SCZ $34.94 25 $873.50 -15.79% Sub-Core
BlackRock, Inc. BLK $148.01 10 $1,480.10 -17.27% Opportunity
ProLogis PLD $24.25 44 $1,067.00 -23.87% Sub-Core
NIKE, Inc. NKE $85.51 25 $2,137.75 5.49% Opportunity
Medtronic, Inc. MDT $33.24 30 $997.20 -8.85% Opportunity
iShares Silver Trust (ETF) SLV $28.91 75 $2,168.25 1.44% Sub-Core
Market Vectors-Coal ETF KOL $30.36 20 $607.20 -38.89% Sub-Core
Rydex S&P MidCap 400 Pure Growth ETF RFG $73.19 30 $2,195.70 -16.44% Core
VMware, Inc. VMW $80.38 22 $1,768.36 -3.71% Opportunity


inMessment Game Trade History for Q3 2011

Below is the trade history for my inMessment Game in Q3.

Date Type Symbol Quantity Price Total Value
9/26/2011 Buy SLV 39 $29.20 $1,148.79
9/21/2011 Sell RRC 25 $69.00 $1,715.01


Join the inMessment Game

Now that you have read through my results why don’t you join the game yourself? It is completly free and the best way I have found to learn about investing.
Click Here to Join the inMessment Game!


DISCLAIMER
This and other articles on this blog are for entertainment purposes. I am doing the best I can but I am still very much in a learning process. These posts are an effort to share this learning process only and should not be considered financial advice.


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