For his Speedboat portfolio, Covestor model manager Global Equity Analytics and Research Services LLC (GEARS) takes a fundamentals based approach that is “financial statement analysis-driven.” This portfolio averages about 7 trades per month and has 33 holdings as of end of day 3/4/11. This portfolio’s current top holdings as of 3/4 include TIBCO Software Inc (TIBX), Amphenol Corp (APH), Cyberonics Inc (CYBX) and Integra LifeSciences Holdings Corp (IART).
On February 17, GEARS added LSI Industries Inc (LYTS) to the model. LYTS provides corporate visual image solutions. In late January, LYTS issued its Q2 fiscal 2011 results, showing an 71% jump in EPS over the same period last year. The company also announced upbeat sales growth forecasts for the remainder of the year. Robert J. Ready, CEO of LYTS stated the following in the earnings press release:
Operating results for the second quarter and first half of fiscal 2011 were somewhat above our internal budget and benefited from generally improving market conditions. The many actions we have taken to improve efficiencies and ‘right size’ the business over the last two to three years are now resulting in favorable operating leverage and benefiting earnings.
Steven Bulwa gives his case for LYTS being high potential with limited downside, at Seeking Alpha:
Should this scenario unfold as I outline, the shares of both Daktronics and LSI Industries could easily double or triple. LYTS also offers investors a nice dividend at current prices of 2.5%. If not, multiples are already low and downside is limited.
Sources:
“LSI Q2 profit jumps, upbeat on revenue outlook” Reuters, 1/27/2011. https://www.reuters.com/article/lsi/update-1-lsi-q2-profit-jumps-upbeat-on-revenue-outlook-idUSSGE70O06J20110127
“LSI Industries Inc. Reports Operating Results for the Second Quarter and First Half ended December 31, 2010, and Declares Regular Quarterly Cash Dividend” LSI Industries Inc., 1/27/2011. https://www.sec.gov/Archives/edgar/data/763532/000089225111000010/ex99012711.htm
“Why Do Investors Continue to Overpay for Popular Stocks” Steven Bulwa. SeekingAlpha, 3/2/2011. https://seekingalpha.com/article/255916-why-do-investors-continue-to-overpay-for-popular-stocks
