Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Help me design a growthy port please.
#11
I know you don't particularly like the sector, and growth is hard to see these days, but how about airlines? 5 years sounds like a pretty good timeline for things to return to normal, and as you are well aware the stocks are anywhere between -50% and -75% from where they were at the start of the year.

Same logic could be used for cruise line stocks. And probably some restaurant stocks too. The idea with all of these is that if you are indeed planning on using the money in about 5 years, these could bring in some decent capital gains simply because they are absolutely destroyed right now.

Tech:
UI has done some tremendous things in the past years but the growth has been slowing down and it's definitely too expensive right now. I wouldn't recommend buying now but worth keeping your eyes on it. Also a potential buyout target since the CEO owns something like 85% already and share repurchases are eating up the remaining shares.

U is a very interesting company in the tech space. Super highly valued and no real historical data yet as it just IPO'd last month or something like that.

V and/or MA would also fit pretty well I think.
Reply
#12
(10-16-2020, 04:04 AM)crimsonghost747 Wrote: I know you don't particularly like the sector, and growth is hard to see these days, but how about airlines? 5 years sounds like a pretty good timeline for things to return to normal, and as you are well aware the stocks are anywhere between -50% and -75% from where they were at the start of the year.

Same logic could be used for cruise line stocks. And probably some restaurant stocks too. The idea with all of these is that if you are indeed planning on using the money in about 5 years, these could bring in some decent capital gains simply because they are absolutely destroyed right now.

Tech:
UI has done some tremendous things in the past years but the growth has been slowing down and it's definitely too expensive right now. I wouldn't recommend buying now but worth keeping your eyes on it. Also a potential buyout target since the CEO owns something like 85% already and share repurchases are eating up the remaining shares.

U is a very interesting company in the tech space. Super highly valued and no real historical data yet as it just IPO'd last month or something like that.

V and/or MA would also fit pretty well I think.
I appreciate the income from all you guys.  I've been thinking about this for two months but I new you guys would have some good idea.  

I think I am going to avoid the IPO and highly speculative game early on.  I do want this to be different than my big port, but mostly blue chips.  I was disappointed to see how overvalued most everything on my list is.  I'm not expecting March 20 prices, but I'm not to keen on buying stocks that are up 10%+ in just a few weeks either.  My random thoughts for today are as follows lol.......

-Allow myself until NOV 15th to get this month and next months funds invested.  That is $5K total.

-I probably should add a sector that is beaten down.  I don't hate airlines, I'm just a realist and holding DAL and AAL was painful this spring.  There are a few airlines that won't BK, but they are years from a profit so the timeline does work.  GD even crossed my mind as they will be years recovering from commercial air drawdown.  BA is a nope, only because it could easily take even longer to right the balance sheet.  I think I'll avoid the cruise lines. BKs are even more possible there for sure.  Restaurants maybe, but I want a pullback before I buy significant shares. Many of them got way ahead of themselves IMO.  I could buy a few shares though.  I can dump a stock and flip to another in a sector.  I just don't want to make that a habit.  It's fun and I'll get out of control lol.     

-I am avoiding any and all longtime dog stocks like T, MO, F, XOM etc.  Completely misses the theme of this port as they need to be swing traded for any real CAP appreciation.  

-A foreign stock is not out of the question.  Perhaps an established midcap in a growthy sector?  I don't need to make all these picks immediately.  This will get much easier the next time the market pulls back 10-15% as some individual stocks will get hit worse.  So I guess I'll get started but go slowly while I wait for an election or a pandemic to create an opportunity.  A stimulus will nullify all that for a time of course.

-And here is a rule that will keep me from storing cash and market timing.  This port has been approve for a $2500 credit line from my main port.  Smile  So I'm never cashless if the market drops the day after I make my monthly purchases.

-For now I am going to put the funds in a short-term bond ETF or similar.  Somewhere I can get near a 1% return.  Makes it easier to track the interest accrued by keeping it out of my large settlement account.

Divmenow, I'll throw up some renewables tickers today.  I am thinking mostly staying away from the highly commoditized area.  A company that only manufactures solar cells is going to struggle competing with China etc.  Valuations on these stocks are just whacked.  Most of the weak ones are even up 3x in six months with zippo earnings.
Reply
#13
I put together a "growth" watch list when I transferred my ROTH account last fall. This was my list of stocks I found interesting from the CCC List and some others I'd been following.

Company, Ticker
Abbott Laboratories ABT
Accenture Plc ACN
Automatic Data Processing Inc ADP
Amgen, Inc. AMGN
Ameriprise Financial, Inc. AMP
American Tower Corp AMT
Amphenol Corporation APH
American Water Works Company Inc AWK
AutoZone, Inc. AZO
Becton Dickinson and Co BDX
BlackRock, Inc. BLK
Church & Dwight Co., Inc. CHD
Comcast Corporation CMCSA
Canadian National Railway CNI
CyrusOne Inc CONE
Costco Wholesale Corporation COST
CSX Corporation CSX
Cintas Corporation CTAS
Dollar General Corp. DG
Ecolab Inc. ECL
Estee Lauder Companies Inc EL
Enbridge Inc ENB
Exponent, Inc. EXPO
FactSet Research Systems Inc. FDS
Fiserv Inc FISV
General Dynamics Corporation GD
Home Depot Inc HD
HDFC Bank Limited HDB
Heico Corp HEI
Honeywell International Inc. HON
Hormel Foods Corp HRL
Intercontinental Exchange Inc ICE
Intuit Inc. INTU
L3Harris Technologies Inc LHX
Lockheed Martin Corporation LMT
Lowe`s Companies Inc LOW
Mastercard Inc MA
Moody's Corporation MCO
Microsoft Corporation MSFT
Nike Inc NKE
Northrop Grumman Corporation NOC
Norfolk Southern Corp. NSC
ONEOK, Inc. OKE
O'Reilly Automotive Inc ORLY
Bank Ozk OZK
Primerica, Inc. PRI
Ross Stores, Inc. ROST
Starbucks Corporation SBUX
Sherwin-Williams Co SHW
Snap-on Incorporated SNA
Stryker Corporation SYK
TJX Companies Inc TJX
Tractor Supply Company TSCO
Toro Co TTC
Ulta Beauty Inc ULTA
UnitedHealth Group Inc UNH
Union Pacific Corporation UNP
U.S. Physical Therapy, Inc. USPH
Visa Inc V
My website: DGI For The DIY
Also on: Facebook - Twitter - Seeking Alpha
Reply
#14
Thanks Eric,

Repeating myself here but I think I am going to jump in on a couple stocks now, and try to take my time adding new ones since many of my favorites are really stretching. It will be fun to research and add a new stock now and then. It will be OK if I reverse course and change a pick in a few months. I trade my big port too much, and this will be nice because I won't be tempted to flip three shares than ran up lol.

I am going to throw out my picks and it won't hurt my feelings at all if you guys object, especially if I start chasing a debt problem. I think I should grab a few stocks that are undervalued currently. I really want to own some of the previously discussed stocks but I don't want to chase them in this environment. So here is the starting point. I am flipping a few shares from my main port starting last night. I had small positions anyway.

CAT- Local company, hate that it is cyclical but it's not crazy overvalued. I already made money flipping it earlier this year so "buying" a little high in this port I can deal with.

CVS-Still very undervalued IMO. I trust they will find some momentum and the non-growing Div is fine for now. I will be done with retail for now after I add DG. CVS is more than retail of course.

WEC-This will be my growthy UTE. Overvalued IMO but it seemingly always has been. Already own a few shares in my big port I will "transfer".

Maybe I will get lucky and get a 2% average DIV in this port. There will definitely be a few non div stocks in the mix.

I'll add a few more soon. GD is likely. I think it may stay down long enough to accrue a position.
Reply
#15
(10-16-2020, 09:39 AM)fenders53 Wrote: Thanks Eric,  

Repeating myself here but I think I am going to jump in on a couple stocks now, and try to  take my time adding new ones since many of my favorites are really stretching.  It will be fun to research and add a new stock now and then.  It will be OK if I reverse course and change a pick in a few months.  I trade my big port too much, and this will be nice because I won't be tempted to flip three shares than ran up lol.

I am going to throw out my picks and it won't hurt my feelings at all if you guys object, especially if I start chasing a debt problem.  I think I should grab a few stocks that are undervalued currently.  I really want to own some of the previously discussed stocks but I don't want to chase them in this environment.  So here is the starting point.  I am flipping a few shares from my main port starting last night.  I had small positions anyway.

CAT- Local company, hate that it is cyclical but it's not crazy overvalued. I already made money flipping it earlier this year so "buying" a little high in this port I can deal with.  

CVS-Still very undervalued IMO.  I trust they will find some momentum and the non-growing Div is fine for now.  I will be done with retail for now after I add DG.  CVS is more than retail of course.

WEC-This will be my growthy UTE.  Overvalued IMO but it seemingly always has been.  Already own a few shares in my big port I will "transfer".      

Maybe I will get lucky and get a 2% average DIV in this port.  There will definitely be a few non div stocks in the mix.

I'll add a few more soon.  GD is likely.  I think it may stay down long enough to accrue a position.
I like your picks other then WEC. I just think that entire sector has run up way to fast and nothing to justify the moves.  To me all the utilities way over valued. I hold many but wont put any new money into that sector unless they get back to normal valuations. 

CAT is breaking out to the upside and is cheap compared to everything else. I see $180

CVS has just been hanging. It's been out of favor forever. But if WBA can beat earnings, then that's a positive for CVS 

GD is dead. I would much rather own HII. I have been buying in that $139-142 range. For one thing, at just 0.64 times trailing sales, Huntington Ingalls stock now trades for about a one-third discount to the average, historical market valuation of major defense contractors. The company churns out about $1.42 in actual free cash flow -- meaning the stock's price-to-free cash flow ratio is only 7.6.

That's my gift to you today Wink
Reply
#16
(10-16-2020, 01:59 PM)divmenow Wrote:
(10-16-2020, 09:39 AM)fenders53 Wrote: Thanks Eric,  

Repeating myself here but I think I am going to jump in on a couple stocks now, and try to  take my time adding new ones since many of my favorites are really stretching.  It will be fun to research and add a new stock now and then.  It will be OK if I reverse course and change a pick in a few months.  I trade my big port too much, and this will be nice because I won't be tempted to flip three shares than ran up lol.

I am going to throw out my picks and it won't hurt my feelings at all if you guys object, especially if I start chasing a debt problem.  I think I should grab a few stocks that are undervalued currently.  I really want to own some of the previously discussed stocks but I don't want to chase them in this environment.  So here is the starting point.  I am flipping a few shares from my main port starting last night.  I had small positions anyway.

CAT- Local company, hate that it is cyclical but it's not crazy overvalued. I already made money flipping it earlier this year so "buying" a little high in this port I can deal with.  

CVS-Still very undervalued IMO.  I trust they will find some momentum and the non-growing Div is fine for now.  I will be done with retail for now after I add DG.  CVS is more than retail of course.

WEC-This will be my growthy UTE.  Overvalued IMO but it seemingly always has been.  Already own a few shares in my big port I will "transfer".      

Maybe I will get lucky and get a 2% average DIV in this port.  There will definitely be a few non div stocks in the mix.

I'll add a few more soon.  GD is likely.  I think it may stay down long enough to accrue a position.
I like your picks other then WEC. I just think that entire sector has run up way to fast and nothing to justify the moves.  To me all the utilities way over valued. I hold many but wont put any new money into that sector unless they get back to normal valuations. 

CAT is breaking out to the upside and is cheap compared to everything else. I see $180

CVS has just been hanging. It's been out of favor forever. But if WBA can beat earnings, then that's a positive for CVS 

GD is dead. I would much rather own HII. I have been buying in that $139-142 range. For one thing, at just 0.64 times trailing sales, Huntington Ingalls stock now trades for about a one-third discount to the average, historical market valuation of major defense contractors. The company churns out about $1.42 in actual free cash flow -- meaning the stock's price-to-free cash flow ratio is only 7.6.

That's my gift to you today Wink
Not sure how I'll ever repay you but I will sure try lol  Big Grin 

I'm not overly concerned with short-term pricing.  Well except I don't want to buy too many $300 shares now when it was $250 six weeks ago and shouldn't have moved.  The intended hold period is five years.  I may or may not sell out the entire port even then.  I'll be pension rich by then lol.  I am NOT going to swing trade this port every time a stock runs 10 points and gets overbought.  Now 100pts, we'll talk about that when it happens.  My big port keeps me more than entertained.  I am going to treat this more like Eric does, and bore you with quarterly updates lol.  

You were pumping GD  just a few months ago.  What changed?  They have commercial air exposure.  It's an RTX story, or something similar for now.  Seriously though, no problem with you disagreeing since I am holding you personally responsible lol..  
 
I like WEC.  Steady performer, already going green and small enough to perhaps expand regionally someday.  I just never buy enough shares because it's been expensive for a long time.  I actually sold some excess today.  The growth port now has two shares and I'll average in from here.  I have much larger positions of about five other UTEs in my main port.  Most aren't as growthy as WEC.  I sell calls against them up here.  They are almost all overvalued.  

CAT got several upgrades today.  I have only two shares of this as well.          

CVS has little downside risk and it's due to run some year soon as they digest the acquisition.  I bought it at rock bottom a few years ago.  I sell puts against it when it goes sub $60, and covered calls later.  Been a great income stock but that's not what this port is about.  It will run 50% eventually and pay a good dividend while I accumulate.  Or maybe they'll get "Amazoned" lol.  I have five shares in the new port.
Reply




Users browsing this thread: 3 Guest(s)