As my free stock trading days come to a close, it is time for me to clean out my closet. And get rid of some of my tiny holdings that Freetrade made it easy to buy.

The problem I am finding is that I have many investment ideas, but just not enough money to attain a substantial position in each. While some may offer the chance for a respectable return, I want more than that. So I am leaning my picks more towards a Peter Lynch style small-cap agressive growth portfolio.

And at the end of the day, I want the best place to park my money. If I put it somewhere, and I figure out I am wrong, I will move it somewhere else. The whole goal is to make my money work for me, not the other way around.

What’s in:

1. Panera Bread (PNRA). A fast growing chain of 700+ bakery cafes. My best performer so far this year.
2. COSI (COSI). A chain of sandwich shops in the midst of a turnaround. I think they have huge long-term growth potential. Soon, there might be one in every Macy’s store. (Based on their conference call, I expect they will announce the future of their Macy’s partnership in the next few weeks.)
3. Electric City (ELC). An electrical equipment manufacturer whose products help its customers save electricity. I absolutely love this company. Basically, this “box” that they sell (called the “Energy Saver”) connects to lighting panels and allows building managers to reduce their lighting system’s energy consumption without causing any noticeable effect on lighting. This is not just a “pipe dream” in development; they have satisfied customers saving more than 20% off of their electric bills, including the State of Illinois, Rayovac Corporation, California State Universities, Gillette Corp., Toyota Motors, and many more. This is a tiny company (under 50 employees), and probably my most speculative holding. But I love their concept, they have a plan for growth, and I think it has great potential in the long term. And at $1 per share, it does not cost much to get a piece of the action. (More on this one soon.)
4. Jones Soda (JSDA). A soda and premium beverage company that is experiencing record growth.

I also own small positions that I may increase:

• Martha Stewart Omnimedia (MSO). A bet on this company is a bet on Martha. I did not bid it up to $38 per share, but I started buying when it dropped back to $21. I am keeping my eye on this one, and as the shares drop, I hope to accumulate shares. I am in no hurry, though, as the company is losing money for now. I think that will change.
• Eastman Kodak (EK). As a native of Rochester, New York, I have seen the results of their cost cutting. They have some great products. And I think they are turning around.
• American Ecology (ECOL). This company is in an ugly business (disposal of radioactive waste), but it is a business that is growing. This company is a major player. (More on this one soon.)

What’s out:

1. Berkshire Hathaway (BRK.B). This has nothing to do with the current General Re investigations. I actually sold my one share a few weeks ago, when I decided not to go to the annual shareholders meeting. Don’t get me wrong– I think Berkshire is a great investment. I think every shareholder should feel confident in Warren Buffett (and most of them are). But, for me, $3000 is a lot to tie up in an investment that, according to Buffett, is only striving to match the market and not really outperform it. I feel like my money could be put to better use in a smaller growth company.
2. Capital Crossing Bank (CAPX). I originally bought this based on John Dorfman’s “Bunny” screen, and it has gone up a bit. But with rising interest rates, I think it is a good idea to shy away from the Financial Services sector. (My favorite financial columnist, James Stewart, talks about this here.) I am also a bit annoyed that they spent over $300,000 last year on the founders’ (who are the Co-CEOs) personal use of their corporate jet, even though they each earned nearly $3 million in salary and bonuses. And that does not even count the $16.5 million they each hold in exercisable stock options. This is not a big company; the market cap is only about $200 million. So to see that the two founders, combined, have options worth more than 10% of the company’s market value makes me think they are taking advantage of shareholders.
3. J. Alexanders (JAX). I actually sold off my other shares a while back, but inadvertently sold half of my position but not all. Although this chain of restaurants could have huge potential, at this point I do not think management is doing a good job. They do not seem to have a good handle on cutting unnecessary costs, and their plans for growth are abysmal. I am not even sure why they went public; I think they should have just found a private investor. I am looking for companies that grow, not ones that sit still.
4. Buffalo Wild Wings (BWLD). I have held a small portion of these shares, after trimming from a larger position a few months ago. The Motley Fool says it is a good business that is showing indications of growth (it was on their “Hidden Gems” list at some point, although I am not sure if that is still true). But, for some reason, my gut is telling me to stay away from this one. After all, how many times per week can someone go out for beer and wings? Such an excursion, for many, might be a once or twice weekly thing–maybe. I just don’t think it has the growth potential of my other holdings. I might be wrong, but I am just not confident. I mean, I would not go there more than once in a great while. So how can I assume that lots of other consumers will?

As an amateur investor, I’m not sure if I am making the right choices. But, at this point, I believe my keepers will do better than the ones I’m dropping.

There are a few more stocks I hold in small quantities that I am evaluating. I will probably sell off a few other positions in the next two weeks. I will keep you posted.

Popularity: 4% [?]