The addition of this month's stock marks the first month in which a pick will also be liquidated according to the sell criteria. Which stock is getting the ax? Of our eight original picks in October 2008, seven are still trading with a PEG ratio below 1.00. The eighth, El Dorado Gold (EGO) is sporting a PEG of 3.77. So effective at Monday morning's opening price, EGO will be liquidated. The funds from that sale will be poured into our new pick McDermott International (MDR). MDR is a worldwide engineering and construction company. Here are the numbers:
Market Cap: 2.275B
PEG Ratio: 0.28
Est Qtrly Sales Growth: 33.7%
ROE: 51.9%
ROA: 9.8%
Insiders Own: <1%
Total Debt/Equity: 0.9%
After these trades close, I'll have an updated performance report for this portfolio.
