Stock Selections for Fall 2020

 It is time to make selections for Fall 2020.

For our 2020 stock picks, we will provide a variety of options:

  • There were a number of companies that went public recently.  We will offer some choices in this area
  • We want to have some options for non-US companies, usually via ADR’s (which allow you to buy on US exchanges, in US dollars)
  • We also have a number of “out of favor” companies that might be worth considering
  • We have a number of stock choices of well performing US and foreign companies

With the return on cash being almost zero, we may want to consider using the BND (Vanguard bond ETF) which has some low amount of risk but has a return over 2% instead of cash for money that does not want to be in the market.

Recent IPO’s

  1. Rocket Companies (RKT) is an online mortgage provider that has grown to be the largest mortgage originator in the USA with a digital platform.  It’s market cap is $45B and I don’t believe that they will pay a dividend.
  2. Sumo Logic (SUMO) is a data and analytics company with strong growth.  The CEO has had positive history with other companies.  SUMO market cap is $2B with no dividend.

Non-US Companies

  1. Roche Holding AG (RHHBY) is a Swiss healthcare and pharmaceutical company and is the world’s largest biotech company.  Roche market cap is $300B and they have a 2.5% dividend.
  2. Spark New Zealand (SPKKY) is a New Zealand wireless company that is well run and poised to benefit with continued digital transformation.  Spark’s market cap is $5B and they have a 5-6% dividend.

Out of Favor Companies

  1. Kraft Heinz (KHC) is a world-wide food and beverage company made up of acquisitions that had some difficulties and write-offs.  They have a good looking turn around plan and have promised many improvements.  Kraft Heinz’s market cap is $38B and they have a 5% dividend
  2. Chevron (CVX) is a large oil company that is well run and has taken the mantle of leading US oil company from Exxon-Mobil.  While oil now remains at the low price of $40 / barrel and may remain there for many years, the world still is powered by oil and will be for several decades to come and this can be an opportunity to buy shares at a low price.  The market cap is $135B and the dividend is around 7%.

Core Holding Candidates

The stocks that have driven the most value in the portfolio that are not bought across all the portfolio (because every beneficiary selects individually) are:

  1. Electronic Arts (EA) – videogames
  2. Mastercard (MA) – electronic payments and credit cards
  3. CME Group (CME) – financial services
  4. Alibaba (BABA) – Chinese e-commerce giant
  5. Nvidia (NVDA) – semiconductors
  6. OKTA (OTKA) – SAAS provider of security services
  7. Paypal (PYPL) – electronic payments
  8. Procter & Gamble (PG) – iconic brand company
  9. Taiwan Semi-Conductor (TSM) – Asian chip giant
  10. Union Pacific (UNP) – railways
  11. Facebook (FB) – social media platforms
  12. TESLA (TSLA) – electric cars
  13. Wal-Mart (WMT) – massive retailer
  14. Cloudflare (NET) – new cloud stock with potential
  15. Gold ETF (IAU) – tracks price of gold

Stock Picks By Portfolio:

  • Portfolio One – DONE
  • Portfolio Two – DONE
  • Portfolio Three – DONE
  • Portfolio Four – pick one
  • Portfolio Five – pick one
  • Portfolio Six – pick one
  • Portfolio Seven – pick two
  • Portfolio Eight – pick two

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