MyDollar 5-stock Tech Invest: Week6
After 3 successive weeks of decline in our 5-stock technology portfolio, this week the trend is broken. As our regular readers know, on Friday, May 19th, we purchased 5 technology stocks (read details) at the closing price of that week. We started with $10000 (about $2000 for each stock).
After 6 weeks, at the close of trading today we stand at $9710, down by 2.89% in 6 weeks but a hike of 2.76% from last week.
This week brought two important news for two of our stocks. The first is about Yahoo. With Google Inc. taking a dominant lead in the Internet search market, it looks increasingly likely that Microsoft Corp. could make a large acquisition, such as of Yahoo Inc., Merrill Lynch said last Friday (report by Merrill Lynch analyst Justin Post). This is an interesting development and if such an acquisition happens, Yahoo stock would certainly move up at the cost of Google.
The second news came today. EMC Corporation the leader in information management and storage, and RSA Security Inc. (RSAS), the leader in protecting and managing identities and digital assets, today announced a definitive agreement for EMC to acquire RSA. Under the terms of the agreement, EMC will pay $28.00 per share (Friday's closing price $27.10 which increased by $4.22 or 18.4% today) in cash in exchange for each share of RSA and the assumption of outstanding options, for an aggregate purchase price of slightly less than $2.1 billion, net of RSA's existing cash balance. Some shareholders probably thought it as 'too pricey' a deal for EMC whose stock declined by 2.5% today. We still believe EMC has very good fundamentals and is shaping itself up in a good way for the future. It's very good stock for a long term play.
Current Value of portfolio:
EMC Corporation (EMC) : 157 at $10.97 (was $12.73 on May 19)
Nasdaq-100 Trust (QQQQ): 51 at $38.77 (was $39.35 on May 19)
Seagate Technology (STX) : 80 at $22.64 (was $24.95 on May 19)
Veeco Instruments (VECO): 82 at $23.84 (was $24.26 on May 19)
Yahoo (YHOO) : 68 at $33.00 (was $29.53 on May 19)
Disclaimer: We own all these stocks in our personal portfolio. Please do not make your investment decision based on this selection. Please do your own homework and/or take expert advice before investing in these stocks.