Monday, June 22, 2015

Late Spring Cleaning: Bought AAPL, ANET, BX, DATA, FEYE

Having lamented owning some low growth, poor balance sheet, underperforming stocks, I looked for some opposites...

Revenue Growth
Cash
Debt
Dividend Yield
Apple (AAPL)
27%
$33.4B
$43.9B
1.6%
Arista Networks (ANET)
53%
$0.5B
$0.04B
n/a
Blackstone (BX)
64%
$1.2B
$9.2B
8.4%
Tableau Software (DATA)
75%
$0.7B
$0.0B
n/a
FireEye (FEYE)
70%
$0.4B
$0.0B
n/a

Revenue growth is my focal point going forward.  Dividends, margins/returns, earnings, cash, etc. are all nice, but revenue growth is the best indicator of a healthy company.


Here's my current portfolio (growth, dividend, and speculative (hey, there is no speculative!)). As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 14.76%
Tesla Motors (TSLA) 11.72%
Baidu (BIDU) 6.06%
Google (GOOG/GOOGL) 5.72%
Blackstone (BX) 3.95%
Under Armour (UA) 3.93%
Amazon (AMZN) 3.79%
3D Systems (DDD) 3.28%
Ace Limited (ACE) 2.64%
Southern Copper (SCCO) 2.55%
Qihoo 360 (QIHU) 2.51%
Twitter (TWTR) 2.36%
Intuitive Surgical (ISRG) 2.31%
Stratasys (SSYS) 2.20%
Nike (NKE) 2.16%
Wells Fargo (WFC) 1.78%
BlackRock (BLK) 1.66%
American Software (AMSWA) 1.64%
Microsoft (MSFT) 1.55%
Cisco (CSCO) 1.54%
China Mobile (CHL) 1.44%
Boeing (BA) 1.43%
ConocoPhillips (COP) 1.38%
Intel (INTC) 1.34%
DuPont (DD) 1.25%
Starbucks (SBUX) 1.18%
Alibaba (BABA) 1.09%
McDonald's (MCD) 1.06%
Arista Networks (ANET) 0.96%
Tableau Software (DATA) 0.91%
FireEye (FEYE) 0.91%
Ansys (ANSS) 0.90%
F5 Networks (FFIV) 0.89%
Salesforce.com (CRM) 0.87%
American Express (AXP) 0.85%
Lululemon Athletica (LULU) 0.84%
Canadian National Railway (CNI) 0.78%
Aqua America (WTR) 0.76%
American Water Works (AWK) 0.76%
Costco Wholesale (COST) 0.73%
Coca-Cola (KO) 0.70%
Computer Programs and Systems (CPSI) 0.70%

Tuesday, June 16, 2015

Late Spring Cleaning: Sold EMC, GRPN, HSY, IBM, IRBT, LVS, SCTY, WYNN

For whatever reason yesterday, I took a closer look at several of my portfolio stocks' key statistics. (Perhaps this should not be a random activity.)  The following group emerged as having several discouraging characteristics:
  • Enemic revenue growth,
  • insufficient cash vs. debt,
  • negative returns, and
  • minor representation within my portfolio.

Revenue Growth
Cash
Debt
Dividend Yield
Returns
Annualized Returns
Portfolio Holdings (as of 5/8/15)
EMC (EMC)
2%
$6.4B
$5.5B
1.7%
-4%
-3%
1.13%
Groupon (GRPN)
3%
$1.0B
$0.03B
n/a 
-14%
-14%
0.57%
Hershey (HSY)
4%
$0.4B
$2.5B
2.4%
-6%
-3%
0.75%
International Business Machines (IBM)
-12%
$8.8B
$38.8B
3.1%
-13%
-5%
0.58%
iRobot (IRBT)
3%
$0.2B
$0.0B
n/a 
-21%
-17%
0.51%
Las Vegas Sands (LVS)
-25%
$2.4B
$9.2B
5.0%
-9%
-5%
0.74%
SolarCity (SCTY)
6%
$0.6B
$1.8B
n/a 
-25%
-26%
0.50%
Wynn Resorts (WYNN)
-28%
$1.8B
$8.0B
1.9%
-26%
-15%
0.60%
There are some decent dividend yields within the group, but overall I decided that I should put my money to better use elsewhere...and lock in those capital losses.

The 5 high revenue growth, healthy balance sheet, (hopefully continuing!) positive return stocks to take the place of the above will be described in my next post.

Monday, June 8, 2015

Stocks Of The Month: AWK, WTR

Water is the new oil.

It could be scarce, it could be abundant; it could be a commodity, it could be a fundamental right; it could be the next bubble, it could be dead money.
Who knows? That's why we buy, hold, and see what happens.


American Water Works (AWK)

Positives:
2.6% dividend yield.
Solid profit (14%) and operating (33%) margins.
18% earnings growth.

Negatives:
$-0.02B cash vs. $6.05B debt.
Modest 3% revenue growth.
Free cash flow negative (-$89M).

Aqua America (WTR)

Positives:
2.5% dividend yield.
Excellent profit (30%) and operating (40%) margins.
13% earnings growth.

Negatives:
$-0.01B cash vs. $1.68B debt.
Modest 4% revenue growth.
Free cash flow negative (-$14M).


Here's my current portfolio (growth, dividend, and speculative (hey, there is no speculative!)). As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 13.68%
Tesla Motors (TSLA) 11.76%
Baidu (BIDU) 5.98%
Google (GOOG/GOOGL) 5.67%
Under Armour (UA) 3.81%
Amazon (AMZN) 3.74%
3D Systems (DDD) 3.50%
Blackstone (BX) 2.83%
Southern Copper (SCCO) 2.62%
Ace Limited (ACE) 2.61%
Twitter (TWTR) 2.47%
Intuitive Surgical (ISRG) 2.31%
Qihoo 360 (QIHU) 2.23%
Stratasys (SSYS) 2.18%
Nike (NKE) 2.09%
Wells Fargo (WFC) 1.75%
BlackRock (BLK) 1.66%
Microsoft (MSFT) 1.56%
Cisco (CSCO) 1.53%
American Software (AMSWA) 1.53%
China Mobile (CHL) 1.47%
ConocoPhillips (COP) 1.42%
Boeing (BA) 1.41%
Intel (INTC) 1.33%
DuPont (DD) 1.27%
Starbucks (SBUX) 1.15%
Alibaba (BABA) 1.14%
EMC (EMC) 1.13%
McDonald's (MCD) 1.07%
Ansys (ANSS) 0.89%
F5 Networks (FFIV) 0.88%
Salesforce.com (CRM) 0.85%
American Express (AXP) 0.83%
Lululemon Athletica (LULU) 0.80%
Aqua America (WTR) 0.78%
American Water Works (AWK) 0.78%
Hershey (HSY) 0.75%
Canadian National Railway (CNI) 0.75%
Las Vegas Sands (LVS) 0.74%
Costco Wholesale (COST) 0.73%
Coca-Cola (KO) 0.71%
Computer Programs and Systems (CPSI) 0.69%
Wynn Resorts (WYNN) 0.60%
International Business Machines (IBM) 0.58%
Groupon (GRPN) 0.57%
iRobot (IRBT) 0.51%
SolarCity (SCTY) 0.50%