Autumn Cleaning

I recently took the opportunity to lock in some capital losses for a few underperforming (lousy) stocks. Gone are Tidewater (TDW), PDL BioPharma (PDLI), and Jackson Hewitt (JTX). The proceeds were split between two stocks I already own, that I felt deserved larger slices of my portfolio: Apache (APA) is in the Gulf oil & gas sector like Tidewater, but is far superior in its management and execution; and Cherokee (CHKE) is a high-yielding licensor of intellectual property like PDL, but with a more stable cash flow. As for Jackson Hewitt...I have no peer stock currently, and won't seek one in the future.

Stock Of The Month: INTC

This month's stock is one of the most undervalued I've seen in quite a while...some would say it's cheap for a reason.

Intel (INTC)

Positives:

Massive positive free cash flows ($8.6B per year).

$18B cash, just $2B debt.

P/E of just 11, and an outstanding PEG (forecast) of 0.74.

Healthy 3.5% dividend yield.

Negatives:

Lots of recent acquisitions to integrate (Texas Instruments' cable modem business, Infineon's wireless chip segment, and most controversially, the entirety of McAfee and their security software(!)).

"Slowing" of PC sales.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 11.52%

Southern Copper (SCCO) 9.66%

Dominion Resources Black Warrior Trust (DOM) 6.77%

Google (GOOG) 6.74%

Ace Limited (ACE) 4.91%

Annaly Capital Management (NLY) 4.63%

The Distressed (AIG, BGP, C, CRIC, ENER, ETFC, F, GIGM, JSDA, JTX, MOT, PCS, WFC, YRCW) 4.41%

BP Prudhoe Bay Royalty Trust (BPT) 4.15%

Hugoton Royalty Trust (HGT) 4.09%

Frontline (FRO) 4.02%

Prospect Capital (PSEC) 3.15%

American Software (AMSWA) 3.11%

Vodafone (VOD) 3.00%

McDonald's (MCD) 2.96%

Great Northern Iron (GNI) 2.92%

Intel (INTC) 2.73%

DuPont (DD) 2.72%

Blackstone (BX) 2.51%

Tidewater (TDW) 2.41%

Apache (APA) 2.32%

F5 Networks (FFIV) 2.28%

Cherokee (CHKE) 2.04%

Baidu (BIDU) 1.88%

Intuitive Surgical (ISRG) 1.72%

PDL BioPharma (PDLI) 1.71%

Cree (CREE) 1.50%