The following is an excerpt from the Stocks Under $10 Weekly Roundup originally sent to Stocks Under $10 subscribers on Mar. 17. Click here to learn more about this dynamic portfolio managed by David Peltier.
U.S. stocks rebounded fractionally this week, as we experienced the type of trading volatility that would be expected around a FOMC interest rate hike and "triple-witching" options expiration. In the model portfolio, we bought 400 shares of Abraxas Petroleum (AXAS) on Wednesday, at a level that was 10% lower than where the stock closed on Friday.
Abraxas officially closed out earnings season in the model portfolio, which serves as our quarterly scorecard for the portfolio. On that front, we're largely pleased with the results, as the portfolio is up about 6% year-to-date and running a full 350 basis points ahead of the benchmark Russell 2000.
We've managed these gains while maintaining an above-average 41% cash position in the model portfolio. We continue to scour the universe of low-dollar stocks for areas to put these funds to work. In addition to our Bullpen names, social networking play, MeetMe (MEET) is a stock that crossed our radar screen this week -- and we plan to do more research on it in the coming weeks.