Thursday, October 3, 2013

"What's" On Our Shopping List For "When" the Time is Right?

The "what" always seems easier to answer than the "when".   As I've indicated in many recent missives, I've been very defensive with the portfolios, holding historically high levels of cash, looking to put that cash to work in quality names when/if the market loses ground in the face of many of the economic and geopolitical headwinds that have been cited here frequently.  With the US Government is perma-hold mode, or at least appearing so, the market has been pulling back, and while the degree of the damage will likely be correlated to events in Washington, it's certainly a good time to review what stocks and ETFs might be candidates for adding to the portfolios when the "when" seems right.

The note below was sent to investors yesterday as an update on various assets that I'm considering, at appropriate valuation levels, each in line with the various thematic value opportunities that make up our global investment strategies.

Your feedback, thoughts or questions about any of the names can be communicated to us through the "Live Chat" or "Contact Form" features on the right hand side of this page.  We look forward to hearing from you!

Fyi….In addition to my publically available articles  and blogs, I’m sending the following update to investors as an fyi as to what I’m watching closely as possible adds to the CORE and IRA strategies and some separately managed portfolios.  While I’m still quite defensive overall, there are some names that are getting close to compelling valuations.  Please let me know if you have any questions or thoughts on any of the names/themes mentioned.  Thanks:

Ø  Himax Technologies (HIMX): semiconductor stock.  Looks like a good fit around some of the other tech names in the strategies.  Makes integrated circuits used in all kinds of things like flat screen tv’s, computer/pad/phone screens, and special technology for what I think will be the next fad: wearables.

Ø  Accenture (ACN):  similar to IBM in that they’re in the computer services and advisory business.  Some of these ‘top 50 tech trends’ charts highlight why this ought to be in favor over time.

Ø  Unilever (UN):  They got hammered on their lowered guidance, citing the emerging market fx situation as doing damage to their business in those countries.  But overall, quality country, industry leader, and I think that ultimately the EM presence will be a net positive as the middle-classes emerge!

Ø  In names that we already own or that have been on the shopping list for a while:

o   Norfolk Southern (NSC)..on improving rail shipments of goods, especially coal, as world economies improve slightly.

o   Davita Healthcare (DVA) and Fresenius (FMS)….both on the ‘obesi-fication’ theme.

o   Waste Management (WM)..on the waste collection, removal and conversion to energy theme.

o   Consumer discretionary names on the expanding middle class in Emerging Markets theme:  Nike (NKE), McDonalds (MCD)

o   Paychex (PAYX):  on expanding employment and payroll/human resource services.

o   Kayne Anderson (KYN) on the US energy infrastructure buildout theme.

o   Citigroup (C): on the new management turnaround theme!

o   Bond substitutes:  XLU (Utility ETF), Senior Housing (SNH) and Omega Healthcare (OHI)

Will keep you posted.

Please continue to visit Soos Global Market Musings for updates.
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(Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
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Additional Disclaimer: currently long many stocks/ETFs including but not limited to XLU, SNH, OHI, C, KYN, PAYX, NKE, MCD, WM, DVA, NSC, ACN, UN.  Positions may change at any time without notice.

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