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%

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.

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%