Ronald Guerrini attempts to outperform the S&P 500 and Nasdaq 100 while picking positions that will have less volatility and shallower drawdowns in his Breakouts and Reversals model. The model has a multi-day holding approach that focuses on breakouts and reversals. This month, he added power and automation company Abb Ltd (NYSE: ABB) to the model. ABB’s stock price began to decline in October. It had a closing price of $22.69 on October 21st and has since fallen to $19.36 (the closing price on November 30th). ABB’s net revenues fell from $34.9 billion in 2008 to $31.8 billion in 2009. During the first three quarters of 2010 they have reported a total of $22.4 billion in net revenues. Unlike net revenues, shareholder equity has been increasing—rising from $11.2 billion in 2008 to $13.8 billion in 2009.
Another position added to the model was energy delivery company Pepco Holdings Inc (NYSE: POM). Like ABB, POM saw a decline in stock price begin in October. On October 18th, POM had a closing price of $19.67. By November 30th, that price had fallen to $18.35. POM’s sales fell from $10.7 billion in 2008 to $9.3 billion in 2009, and during the first three quarters of 2010 they have reported a total of $6.1 billion in sales. While sales might be falling, shareholder equity has grown from $4 billion in 2007 to $4.2 billion in 2008, and to $4.3 billion in 2009.
IntercontinentalExchange Inc (NYSE: ICE), a financial company, was also added to the model. Recently, ICE has seen some increases in its stock price. ICE had a closing price of $94.42 on August 30th. The stock price rose to a closing price of $117.44 on November 5th but has since fallen—closing at $112.70 on November 30th. Company sales have been increasing since 2007 when they reached $574.3 million. They grew to $813.1 million in 2008 and to $994.8 million in 2009. Shareholder equity has also been improving, rising from $2 billion in 2008 to $2.4 billion in 2009.
*All prices used in this post obtained from Yahoo! Finance.
