Help me design a growthy port please.

[fenders53]

(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

Not sure how I'll ever repay you but I will sure try lol   

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.