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November 30, 2008

McMillan Portfolio
by Mark McMillan

11/30/2008 4:11:00 PM

The McMillan Portfolio
We were able to enter a new position in the past week. The position was a short position on 100 shares of the Lehman 20-year bond at $105.00. The shares closed the week above this price at $105.72. This is a long term position based on our opinion that the flight to fixed income investments is now overbought and that, over time, the price will come down as credit markets normalize. We intend to add to this position opportunistically in the future, depending on movements in the market. This position is likely to be held for a year or more and the cash yielded by it will help finance other investments we will want to make over time.

Our current portfolio is reflected below:

Long Term Portfolio
Inception Date 10/24/2008

Current Positions:

Date	Trade	Symbol	Qty	Price Paid	Cur Value	$ G/L	% G/L
10/27/08	Long	PBR	100	$2,000	$2,094	$94	4.7%
10/27/08	S-PUT	SFLQB	10	($2,250)	($2,000)	$250	11.1%
10/28/08	Long	SFL	500	$5,500	$5,945	$445	8.1%
10/28/08	S-PUT	YMOMB	4	($3,400)	($4,250)	($850)	-25.0%
11/10/08	Long	BAC	500	$10,000	$8,125	($1,875)	-18.8%
11/10/08	Long	BNI	100	$8,200	$7,661	($539)	-6.6%
11/11/08	Long	RIO	800	$10,000	$9,552	($448)	-4.5%
11/13/08	Long	LNDC	1000	$7,250	$6,940	($310)	-4.3%
11/19/08	S-PUT	WBAMC	10	($5,400)	($4,600)	$800	14.8%
11/26/08	Short	TLT	100	($10,500)	($10,572)	($72)	-0.7%
Total G/L				$21,400	$18,895	($2,505)	-11.7%

Commissions Paid: $70.00

As of November 28, 2008

Cash Position	Reserved Cash:	Free Cash:
$178,663.92	$49,000.00	$129,663.92

Interest Earned on Cash Balance last month:	$105.92
Total Portfolio Value:	$197,558.92
Performance YTD:	-1.22%

There are no fixed stops to this portfolio, but we will actively monitor and manage positions. Cash balances will earn modest interest rates, depending on average daily balance in money market accounts. All transactions are assumed to cost $7 per trade. Each broker charges different amounts per trade, depending on trade frequency, size of the trade, trade type, etc. Check with your broker to determine your actual costs.

We hope you have enjoyed this edition of the McMillan portfolio. You may send comments to mark@stockbarometer.com.

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Mark McMillan
The McMillan Letter

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