We have some outstanding investments to consider for 2021.
Portfolio Five
There are stocks in this portfolio to strongly consider selling.
- SUMO – while the SAAS / analytics sector has seen strong performance, SUMO has performed poorly. This is a stock to strongly consider selling
- Baozun (BZUN) – Baozun is a Chinese e-commerce enablement company. Whether due to China market / regulatory challenges or company growth, it is time to sell this stock
- Alibaba (BABA) – Alibaba has gone down significantly. Unlike the other stocks on this sell list, I think Alibaba has a very large and important business for the long term, as a leading cloud platform / e-commerce platform. They also own a valuable financial business. Can keep or sell
There will be up to $10k – $11k to invest depending on the sales up above (there was $9k in the cash account due to our selling of Appian (APPN) earlier this year when it hit a brief peak). This could be 5 or 6 stocks depending on the size, or a stock with a double purchase.
- Tesla (TSLA) and / or Toyota (TM) – the best run / most profitable companies in the space are Tesla on the electric car space and Toyota on the gas / electric combination play. While almost all other car makers in the world are betting almost solely on electric cars with the next generation moves, Toyota continues to believe in a future for gas powered vehicles which makes sense because it will be decades or longer before a reliable electric infrastructure girds the globe (think Africa / Asia, for instance)
- Pinduoduo (PDD) – the Chinese stock market has been pummeled with regulatory changes and cold-war rhetoric. This may also be an opportunity to buy a valuable and innovative e-commerce company at a discount
- Rocket Mortgage (RKT) – Rocket was briefly a target of a meme-stock rally and then fell but this obscures that this is a “real” company with a 7% dividend and a solid position in the US mortgage market. This may be a long term stock to buy at a decent down price
- Kraft-Heinz (KHC) – Kraft-Heinz fell and had a significant write off. The company is well run and has a new plan and solid dividend. They provide essential food staples around the world
- Taiwan Semiconductor Manufacturing (TSM) – this stock is an essential company in the middle of a global chip shortage but also tied to bellicose behavior from China. May be an opportunity to purchase it at a discount
- Nike (NKE) – the global footwear leader just released earnings and said that the global supply chain difficulties would hit revenues temporarily. Seems like an opportunity to buy a solid company at a discount
- Uber (UBER) – the ride sharing company had missteps in the past but has changed management and is well positioned to go on a big run of earnings as the economy opens up
- Square (SQ) – a well run and very interesting company in the financial space that is also moving into deferred payments (essentially loans) and bitcoin
Portfolio Seven:
There are stocks in this portfolio to strongly consider selling.
- SUMO – while the SAAS / analytics sector has seen strong performance, SUMO has performed poorly. This is a stock to strongly consider selling
- Baozun (BZUN) – Baozun is a Chinese e-commerce enablement company. Whether due to China market / regulatory challenges or company growth, it is time to sell this stock
- Alibaba (BABA) – Alibaba has gone down significantly. Unlike the other stocks on this sell list, I think Alibaba has a very large and important business for the long term, as a leading cloud platform / e-commerce platform. They also own a valuable financial business. Can keep or sell
If these stocks were sold there would be funds available for 3 purchases. Here are some ideas:
- Nike (NKE) – the global footwear leader just released earnings and said that the global supply chain difficulties would hit revenues temporarily. Seems like an opportunity to buy a solid company at a discount
- Tesla (TSLA) and / or Toyota (TM) – the best run / most profitable companies in the space are Tesla on the electric car space and Toyota on the gas / electric combination play. While almost all other car makers in the world are betting almost solely on electric cars with the next generation moves, Toyota continues to believe in a future for gas powered vehicles which makes sense because it will be decades or longer before a reliable electric infrastructure girds the globe (think Africa / Asia, for instance)
- Uber (UBER) – the ride sharing company had missteps in the past but has changed management and is well positioned to go on a big run of earnings as the economy opens up
- Square (SQ) – a well run and very interesting company in the financial space that is also moving into deferred payments (essentially loans) and bitcoin
- Chevron (CX) – a fuels company that is well run and has taken over the lead company in this space from Exxon Mobil (XOM)
- L’Oreal (LRLCY) – the French cosmetics firm has a global footprint and has really embraced digital and modern methods during the pandemic
Portfolio Eight:
There are stocks in this portfolio to strongly consider selling.
- SUMO – while the SAAS / analytics sector has seen strong performance, SUMO has performed poorly. This is a stock to strongly consider selling
- Baozun (BZUN) – Baozun is a Chinese e-commerce enablement company. Whether due to China market / regulatory challenges or company growth, it is time to sell this stock
If these stocks were sold there would be funds available for 2 purchases. Here are some ideas:
- Nike (NKE) – the global footwear leader just released earnings and said that the global supply chain difficulties would hit revenues temporarily. Seems like an opportunity to buy a solid company at a discount
- Square (SQ) – a well run and very interesting company in the financial space that is also moving into deferred payments (essentially loans) and bitcoin
- Chevron (CX) – a fuels company that is well run and has taken over the lead company in this space from Exxon Mobil (XOM)
- Pinduoduo (PDD) – the Chinese stock market has been pummeled with regulatory changes and cold-war rhetoric. This may also be an opportunity to buy a valuable and innovative e-commerce company at a discount
- L’Oreal (LRLCY) – the French cosmetics firm has a global footprint and has really embraced digital and modern methods during the pandemic
- Uber (UBER) – the ride sharing company had missteps in the past but has changed management and is well positioned to go on a big run of earnings as the economy opens up