A Transparent Speculator

It was decided to section off a part of the fund to create a speculative portfolio. The portfolio aims to focus on a diverse set of speculative stocks to maximize gains. It is important to note the speculative portfolio does not represent the standard investment strategies of Batty Investments, and is likely to be looked back upon as a self-indulgent act of waste and exercise in abject futility.

Without further ado, below is the current portfolio:


A couple of points to make:

EMC - My belief in EMC has been discussed here and here, and the opportunity to pick it up at $15 in afterhours following VMWare's disappointing earnings was too good to pass up.

FMCN - Focus Media is my Chinese stock for the run into the Olympics. I believe their market leading position in out of home display advertising will continue to grow rapidly as industry and tourism expands.

SOMX - They don't get much more speculative than SOMX as it really is a one trick pony (insomnia) in an already somewhat crowded space (Ambien, Lunesta, etc). They also don't get much cheaper than Somaxon as they have seen their shares battered over FDA stubborness, a lack of a commercial partner, and the sudden departure of their CEO. Despite all of these negative events, it's difficult to pass on the fact that their drug really works and provides another option to a very fickle patient population with insomnia. I believe that SOMX will be a strong performer in 2008, with 100%+ gain potential upon either an FDA approval, partnership, or buyout.

CEGE - I've written about my interest in CEGE here, but this is a position that will likely be added to over time. I bought the April $2.50's with the hope of an impressive showing at ASCO , but it will most likely expire a loser.

I will try to keep this updated weekly to reflect changes in the portfolio.