Novice Investing

Date: Sunday 20th 2008f July 2008 12:39:32 PM

Merck is marked for sale - 08/07/2005

By: Novice Investing Staff

On Thursday Aug 4th 2005, we decide to add MRK to our portfolio. It has been hovering a few cents above our $ 30.31 buying point and we thought, hey, getting a 49.9% potential return is OK too. It turned out we bought the stock at $ 30.40. Close enough. In the short term, MRK might as well fall to $ 20.00. That is too bad. Volatility is the nature of the stock market. We have other tools to protect our loss with options but we won't get into that here. We are pretty confident that in several years, MRK will trade higher once the Vioxx litigation clears up. We leave it to the professional to figure out the lowest absolute price MRK can fall.

In the meantime, MRK is giving us annual dividend of $ 1.52/share. That is nearly 5 % dividend yield. We can get 5% interest while waiting for this Vioxx saga to end.

To summarize, as of right now, we have 4 holdings in our portfolio. It includes, Merck, Fresh Delmonte Produce, Leap Frog Enterprises and Magna International.

END

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