In her International Yield model, manager Vivian Lewis uses closed-end funds, stocks and preferred shares from countries outside the United States in order to create a portfolio with a target yield of 5 percent. Last week, she added offshore deepwater drilling company SeaDrill Ltd (NYSE: SDRL) to the model. After the company released their 2010 quarter three financial results on November 30th, their stock price climbed. The stock, which had a closing price of $31.09 on November 30th, rose to a closing price of $32.74 by December 1st and $34.47 by December 8th (all prices from Yahoo! Finance). According to Money.CNN.com, SDRL had a 7.1 percent dividend yield as of December 9th.
The Speedboat model managed by GEARS is based on the fundamentals and financial statements of the companies that the manager considers adding to the model. The goal of the model is to select rapidly accelerating companies that are expected to produce high returns. Last week, GEARS added shares of Key Tronic Corp (NASDAQ: KTCC) to the model. KTCC’s net revenues decreased from $204.1 million in 2008 to $184.9 million in 2009, but rose to $199.6 million during their 2010 fiscal year. On October 26th the company released its 2011 quarter two guidance and stated that they expected their reported revenue to be between $61 million to $64 million—which is consistent with the past few quarters and exceeds the results from the same quarter of the prior year.
