Author: Raymond Stoudt
Disclaimer: Raymond Stoudt owns CY, EMC, CSCO and SCHW in his Covestor Innovative Companies model.
October 4, 2010: “The “Innovative Companies” Model had a positive performance greater than the benchmark for the quarter ending September 2010 (13.33% versus 10.72% for the S&P 500), however, I am a little disappointed; I was too conservative in my stock selections. Looking out the next two quarters there are a number of tech stocks I would like to have in the model, however, I am not a stock chaser; I will be patient and wait for a better entry point. The model has cash to buy positions and October may provide an opportunity to buy the stocks I want to have for the next one to two quarters.
In most cases, my opinion of the economy or fundamental factors has no basis in my selection of stocks to buy or sell, as I am a technical analysis person by nature. I continue to focus on companies with a strong market position in their business segment. The current model positions in Cypress Semi (CY), EMC, Cisco (CSCO) and Charles Schwab (SCHW) are stocks I have traded for years and I’m confident in the management.
My objective for October/November is to deploy the remaining cash while taking advantage of any short-term price objectives with the current positions. The strong September performance, while an aberration, might have been the “kick-start” for a strong three to six month market move.”
