This month's choices continue the recent trend of growth stocks. I've had my eye on both of these stocks for a while...one of them waited around for me, and I'm a little late on the other...
Groupon (GRPN)
Positives:
Decent revenue growth (26%).
Reasonable forward P/E of 26.
$1B cash, zero debt.
Positive cash flows ($189M operating, $249M free).
Negatives:
Bad margins (-5% profit, 1% operating), ROA (1%), ROE (-15%).
Negative earnings (-0.19 EPS).
Significantly shorted (12%).
SolarCity (SCTY)
Positives:
Excellent revenue growth (112%!).
Very low 5-year PEG ratio of 0.58 (if you believe in that sort of future-telling).
Positive operating cash flow ($150M).
Negatives:
Terrible margins (-20% profit, -95% operating), ROA (-5%), ROE (-32%).
$516M cash vs. $710M debt.
Negative free cash flow (-$785M).
Heavily shorted (29%).
Here's my current portfolio (growth, dividend, and speculative). As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 11.27%
Tesla Motors (TSLA) 9.96%
Google (GOOG/GOOGL) 6.98%
Baidu (BIDU) 6.29%
3D Systems (DDD) 4.87%
Amazon (AMZN) 3.33%
Under Armour (UA) 3.17%
Southern Copper (SCCO) 3.17%
Ace Limited (ACE) 2.98%
Qihoo 360 (QIHU) 2.78%
Stratasys (SSYS) 2.68%
Blackstone (BX) 2.56%
Twitter (TWTR) 2.39%
Intuitive Surgical (ISRG) 2.13%
American Software (AMSWA) 1.93%
Nike (NKE) 1.81%
Intel (INTC) 1.48%
Apache (APA) 1.45%
ExOne (XONE) 1.40%
Wynn Resorts (WYNN) 1.40%
DuPont (DD) 1.34%
Kinder Morgan Energy Partners (KMP) 1.30%
EMC (EMC) 1.28%
McDonald's (MCD) 1.26%
Las Vegas Sands (LVS) 1.23%
Prospect Capital (PSEC) 1.14%
ConocoPhillips (COP) 1.14%
American Express (AXP) 1.14%
Wells Fargo (WFC) 1.01%
Starbucks (SBUX) 0.99%
Computer Programs and Systems (CPSI) 0.96%
Canadian National Railway (CNI) 0.95%
Microsoft (MSFT) 0.91%
Cisco (CSCO) 0.90%
Hershey (HSY) 0.89%
F5 Networks (FFIV) 0.89%
Ansys (ANSS) 0.87%
BlackRock (BLK) 0.85%
Coca-Cola (KO) 0.83%
Salesforce.com (CRM) 0.77%
International Business Machines (IBM) 0.74%
iRobot (IRBT) 0.74%
Groupon (GRPN) 0.72%
SolarCity (SCTY) 0.70%
China Mobile (CHL) 0.68%
The Distressed (BEBE, GSOL, LZB, MSI, TMUS) 0.64%
Lululemon Athletica (LULU) 0.62%
Whole Foods Market (WFM) 0.46%
