Stocks To Purchase By Account

Based on the situation in each account and the amount of cash available after contributions and sales each account has a number of different purchases to make:

Portfolio 1 – no purchases

Portfolio 2 – can invest $2500 in ETF’s (one of the current 4 in use) or the Gold ETF added.  Or leave it in cash

Portfolio 3 – 2 purchases

Portfolio 4M – 3 purchases

Portfolio 5D – 3 purchases

Portfolio 6 – 3 purchases

Portfolio 7G – 2 purchases

Portfolio 8K – 2 purchases

Advertisements

Stock Selections for 2017

Below are our stock selections for 2017:

US Stocks

  1. Appian (APPN) – $24, 52 week range $17-$27, $1B market cap, no dividend, almost no debt.  Appian is an internet software company that provides automation software for corporate customers.  Well run and growing fast, went public recently and has done well since the IPO

2. Nvidia Corporation (NVDA) – $179, 52 week range $63-$191, $107B market cap, almost no dividend, $4B debt.  Nvidia makes chips for games and graphics cards and these chips are also being used for AI and machine learning use cases.

3. General Motors (GM) – $42, 52 week range $30-$42, $61B market cap, 3.8% yield, $55B debt.  GM is an iconic, global auto manufacturer with strong worldwide presence including China and has invested heavily in electric car technology.  Non US sales total 58% of volume (but a smaller percentage of profits).

4. Snapchat (SNAP) – $15, 52 week range $11-$29, $18B market cap, no dividend, no debt.  Snapchat went public and recently has lost almost half its value.  The company has over $2B in cash but is running a large loss due to operational expenses and acquisitions.  However, it is still strong in market and mind share and could also be an acquisition candidate for the right price

International Stocks

5. Baozun (BZUN) – $36, 52 week range $11-$41, $2B market cap, no dividend, little debt.  Baozun is a Chinese e-commerce provider for many major companies.

6. ABB (ABB) – $25, 52 week range $20-$25, $54B market cap, 3% yield, $7B debt.  ABB is a Swiss company and European conglomerate with strong interests in power and electricity generation.

Other

7. Gold ETF (IAU) – $12, 52 week range $11-$13, no dividend.  This ETF tracks the price of gold.  In case of a market correction (prices go down), gold often holds its value on a comparative basis.  On the other hand, gold pays no dividends and does not generate profits

We looked at bitcoin but there currently isn’t a direct bitcoin ETF and if someone wanted to trade bitcoin or ether they would be better off trading it directly.  These sorts of crypto currencies can cause taxation and other related issues and are too complex for this portfolio at the current time.

Overall Possible Sales for August, 2017

We are looking at the portfolios prior to the summer 2017 stock investing.  We are mainly evaluating stocks that have fallen relative to their 2017 52 week high prices.  We are also considering some whose narrative have changed (usually the same stocks).  This is easier now that I have a central consolidated view of stocks and some standard analytics through Google Sheets that use automatic formatting as well.

Portfolio One:

  • We did some recent selling here so we are OK

Portfolio Two:

  • We moved this portfolio to ETF’s.  The Biotech ETF (IBB) is doing OK now

Portfolio Three:

  • ConocoPhillips (COP) – integrated oil and gas producer hit by commodity prices.  Possible sale
  • ExxonMobil (XOM) – well run massive integrated oil and gas major also hit by commodity prices and political items.  Less likely sale

Portfolio Four (M):

  • Devon Energy (DVN) – smaller oil and gas company hit hard by commodity prices.  Likely sale
  • Spirit Airlines (SAVE) – discount airlines facing more competition.  Possible sale
  • Nucor (NUE) – US metals producer facing heavy competition from China.  Possible sale

Portfolio Five (D):

  • Tata Motors (TTM) – Indian truck maker that owns Jaguar / Land Rover.  Down significantly.  Likely sale
  • Spirit Airlines (SAVE) – discount airlines facing more competition.  Possible sale
  • ConocoPhillips (COP) – integrated oil and gas producer hit by commodity prices.  Possible sale

Portfolio Six

  • Tata Motors (TTM) – Indian truck maker that owns Jaguar / Land Rover.  Down significantly.  Likely sale
  •  ConocoPhillips (COP) – integrated oil and gas producer hit by commodity prices.  Possible sale
  • ExxonMobil (XOM) – well run massive integrated oil and gas major also hit by commodity prices and political items.  Less likely sale

 Portfolio Seven G:

  • Spirit Airlines (SAVE) – discount airlines facing more competition.  Possible sale

Portfolio Eight K:

  • Tata Motors (TTM) – Indian truck maker that owns Jaguar / Land Rover.  Down significantly.  Likely sale

Portfolio Five Updated August 2017

Portfolio five is 8 years old.  The trustee contributed $8000 and the beneficiary $4000 for a total of $12,000.  The current value is $14,184 for a gain of $2,184 or 18%, which works out to 4% / year.  See detail here or go to a link on the right.

We are evaluating stocks to sell prior to our summer purchases.

  • Tata (TTM) – Indian automaker who is down significantly.  Likely sell
  • Spirit Airlines (SAVE) – US discount airlines that is facing more competition and headwinds.  Possible sell
  • ConocoPhillips (COP) – integrated oil and gas company hit by falling commodity prices.  Possible sell

Portfolio 4 Updated August 2017

Portfolio 4 is 8 years old.  The trustee contributed $8000 and the beneficiary $4000 for a total of $12,000.  The current value is $14,957 for a gain of $2,957 or 25% which is about 5% / year adjusted for the timing of cash flows.  Go here or to the link on the right for more details.

We need to make some decisions on stocks prior to investing:

  • Devon (DVN) – energy company hit hard by the decline in oil and gas prices.  Likely sell
  • Spirit Airlines (SAVE) – discount airlines down recently due to increased competition from major airlines.  May sell
  • Nucor (NUE) – metals company under continuous pressure from cheaper overseas imports.  May sell

Portfolio Eight Updated August 2017

Portfolio Eight is 2 years old.  The trustee contributed $2000 and the beneficiary $1000 for a total of $3000.  The current value is $3411 for a gain of $411 or 13%, which is 8% / year.  See the details here or use the link on the right.

Tata Motors (TTM), the Indian truck maker who also owns Jaguar / Land Rover, is on watch.  We are considering selling this stock which has fallen over the last year.

Portfolio Seven Updated August 2017

Portfolio Seven is 2 years old.  The trustee invested $2000 and the beneficiary $1000 for a total of $3000.  The current value is $4209 for a gain of $1209 or 40%, which is 24% / year adjusted for the timing of cash flows.  You can see the detail here or in the link to the right.

When you have a portfolio with only 4 stocks like this one, an increase in a single stock can impact your performance (positively or negatively).  In this case Alibaba (BABA) the Chinese e-commerce giant has done very well which has accounted for 2/3 of the total growth in portfolio value.

We have one stock “on watch” which is Spirit Airlines (SAVE).  The stock is down about 40% from its high price.  We are considering selling this or holding on as it competes with other airlines.