Editor’s note: As of 9/20/11 Lucas Krupinski no longer manages a Covestor model
In his Small Cap Fundamentals model Lucas Krupinski takes a fundamental approach to choosing small cap positions. He also considers whether or not a potential security will generate an income before deciding to buy. Although it doesn’t happen often, Krupinski occasionally shorts and buys speculative securities.
This week Krupinski added several positions to his portfolio including Vodafone Group Plc (NASDAQ: VOD). VOD provides communication services for businesses and families and is India’s largest mobile phone operations company. Their 2010 net revenues exceeded the prior year’s and their net income in 2010 more than doubled that of 2009. The company has a 7.28% dividend yield (as of end of day 8/12/10). The recent avoidance of a ban on Blackberry use in India due to the lack of a proxy server to monitor customer emails means that VOD can continue servicing customers and collecting revenue.
Another position purchased by Krupinski this week was Fly Leasing Ltd (NYSE: FLY). FLY buys and leases aircraft worldwide. The company has consistently increased their revenues and net income since their inception in 2007. Their stockholder equity dipped in 2008, but increased in 2009. During the second quarter of 2010, FLY repurchased 1.4 million shares of stock and their net income was slightly reduced from the same quarter of the previous year.
Greenlight Capital Re Ltd (NASDAQ: GLRE) was also added to the portfolio this week. GLRE is a property and casualty reinsurer. In 2009 their premiums earned jumping to $229.7 million which was an impressive increase from $96.6 million the prior year. During the second quarter of 2010 the company has had significantly lower revenues than they had in 2009 though their premium numbers have increased. The company’s CEO recently stated that FLY is looking for the right places to grow their book of business and the right places to discontinue their underwriting efforts.
