Author: Bob Freedland
Covestor model: Buy and Hold
Disclosures: Long COST, HIBB, SHS, WM
I want to discuss briefly some new holdings that I added to this model over the past two months.
A few positions were added to this model during the past two months that didn’t work out and were therefore sold for a loss: Apple (NASDAQ: AAPL), Google (NASDAQ : GOOG) and Green Mountain Coffee Roasters (NASDAQ: GMCR).
The following new holdings, however, look to have strong potential. My strategy continues to be to identify companies that show good price momentum and have reasonable valuation along with the potential to continue to grow the company into the future.
Costco (NASDAQ: COST) was added to the model when the company demonstrated strong technicals and a same-store sales growth of approximately 7% in May. With the economy showing some softness, I chose to add this position of the very successful warehouse-discounter.
Hibbett Sports (NASDAQ: HIBB), the sporting goods retailer, was added to the model after the stock price moved higher on an outstanding earnings report.
Similarly, Sauer-Danfoss (NYSE: SHS) the manufacturing firm was added to my Buy and Hold model after the stock moved higher on the heels of a strong earnings report accompanied by strong company guidance.
Finally Waste Management (NYSE: WM) was added to the portfolio due to its strong technical chart and my belief that as the economy recovers, garbage and waste generation should also rebound, providing greater business opportunities for WM.
I continue to work the portfolio, aiming to keep volatility and thus risk as low as possible, while keeping funds invested in companies that could show significant price appreciation as the year develops.
Sources:
Costco press release, 6/2/11 https://finance.yahoo.com/news/Costco-Wholesale-Corporation-iw-2543326514.html?x=0&.v=1
“Hibbett Sports 1Q earnings increase 23 percent” 5/20/11 Associated Press
Sauer-Danfoss press release, 5/4/11
Waste Management chart from StockCharts.com, 7/14.
