Peter’s Stock Picks

As a school project, I had the pleasure of buying some stocks, using the universally accepted Luzi-Dollar. Dr. Luzi was kind enough to lend me 100,000 Luzi-Bucks, to invest in three stocks of my own choosing, provided that the stocks were picked from companies in different industries, and that at least 100 Luzi’s were spent on each company. Therefore, I choose to buy stocks in the following three companies:

· Micro Therapeutics, a medical device company which manufactures and sells its own brand of micro catheters, guide-wires and its proprietary Onyx Liquid Embolic material, which are used in the minimally invasive brain radio therapies. Micro Therapeutics is currently in clinical trials in the US, and after US FDA approval, this company will see some solid gains. Therefore, I bought 25,000 Luzis worth of MTI, to a total of 6097.56 shares, at $4.10 a share on June 7, 2002.

· Home Depot, Americas largest home improvement retailer, which sells materials, tools and equipment for the “do-it-yourself” home improvement market. Using 50,000 Luzis, I bought 1287.66 shares, at $38.83 per share on June 7, 2002. Since Home Depot is in the summer season, when sales are traditionally very strong, this stock will more than likely go up to about $45.00, which has been its overall price for quite some time.

· Newport Corporation, an Orange County manufacturer of capital equipment, aimed at the fiber optics, semi-conductor and research markets. Newport Corp. has gone through some rough times, and one of the most spectacular stock roller-coaster rides in a very short time. Therefore, at $16.97 a share, NEWP is a bargain, and sure to see some solid gains. So, again using 25,000 Luzis, I bought 1473.19 shares, again on June 7, 2002.

Epilogue:

None of my stock picks has made me rich so far, however my losses have not been catastrophic. The following is a break-down of the stock values on July 5, 2002, and a comparison of values on June 7, 2002:

Micro Therapeutics:

Bought 6097.56 shares on June 7, 2002 for $4.10 a share for a total of $25,000.00

Holding 6097.56 shares on July 5, 2002 for $4.00 a share for a total of $24,390.00

Total paper loss, 2.5% or $610.00

Using Dr. Luzi’s 8% rule, I will continue to hold this stock.

Home Depot:

Bought 1287.66 shares on June 7, 2002 for $38.83 a share for a total of $50,000.00

Holding 1287.66 shares on July 5, 2002 for $37.99 a share for a total of $48,918.20

Total paper loss, 2.21% or $1,081.80

Using Dr. Luzi’s 8% rule, I will continue to hold this stock.

Newport Corp:

Bought 1473.19 shares on June 7, 2002 for $16.97 a share for a total of $25,000.00

Holding 1473.19 shares on July 5, 2002 for $16.55 a share for a total of $24,381.29

Total paper loss, 2.54% or $618.71

Using Dr. Luzi’s 8% rule, I will continue to hold this stock.

Total losses, all three stocks: $2,310.51

Percent loss: 2.37

Portfolio evaluation: Hold