Covestor model managers Epic Advisors added a couple of new positions to their Bottom Up Analysis Agg model this week. In this model, Epic Advisors uses fundamental analysis and market timing when determining which positions to add. The model is aggressive and mixes core, long-term hold purchases with day trading positions.
One of the positions they added this week was SanDisk Corp (NASDAQ: SNDK), a company that—according to their website—is a global leader in flash memory cards. In these days of MP3 players, digital cameras and multi-tasking phones, flash cards are a popular item. As proof of this, take a look at SNDK’s net revenues which grew from $3.4 billion in 2008 to $3.6 billion in 2009. This led to an earnings per share that increased from -$9.13 in 2008 to $1.79 in 2009. Their total liabilities fell from $2.7 billion in 2008 to $2.1 billion in 2009 and their price to earnings ratio is quite low compared to their peers.
The second position Epic Advisors added to the Bottom Up Analysis Agg model was Crocs Inc (NASDAQ: CROX). CROX specializes in footwear styles that are both durable and comfortable. Their shoes originated as gardening-wear but quickly became an everyday choice for gardeners and non-gardeners alike. As a result of this popularity, the company has expanded their line of shoes to include designs that are more suited to daily wear. The company’s net revenues dropped in 2009, falling to $645.8 million from $721.6 million the year before but their total liabilities fell as well. In 2008 their total liabilities had been $147.6 million and in 2009 they reported total liabilities of $103.6 million. Their price to earnings ratio is much higher than their peers and competitors, indicating that they might be overbought.
