Author: Leif Eriksen
Covestor model: Performance with Protection and Global Growth Brands
Disclosures: Long TEVA
May was a quiet month for me. In my Performance with Protection portfolio, I bought Teva Pharmaceutical Industries Ltd (ADR) (NASDAQ: TEVA) and sold NxStage Medical, Inc. (NASDAQ: NXTM).
I had a very good run with NXTM and I believe, for the moment, the negatives outweigh the positives for the stock.
The TEVA acquisition reflects its relative value and growth prospects. Generic drugs will continue to do well in the face of rising health care costs and the shifting of buying decisions to consumers. I will continue to tweak this portfolio over the summer, but don’t expect any big changes. The portfolio as it stands today reflects a good balance between value and growth, all within the context of my overall macroeconomic themes (see previous reports).
In my Global Growth Brands portfolio, I sold Plains Exploration & Production Company (NYSE: PXP). I’m hanging tight with a large cash position in this newer account until the market shows some signs of emerging from its ongoing correction. I’m perfectly happy to keep it that way as long as necessary and until I find some compelling values in the market. In general, given the recent economic news and seasonal factors, I expect the market will remain soft through the summer.
As always, I will keep you apprised of my thoughts. Until next month, many happy returns.
