Category: USA Stock Only

Stock Considerations for Portfolios – USA (Core, Market & Aspirational)

New Core considerations: AT&T, Lamar Advertising, Medical Properties, Edison Intn’l, Market considerations: CBS, GM, Goodyear, MetLife, Principal Financial Grp, General Dynamics, MSC Industrial, LSC Communications, Alaska Air Grp, Delta Air Lines, TE Connectivity, Celanese, Eastman Chem, Vulcan Materials, Jones Lang LaSalle, and Aspirational: Anadarko Petroleum, Newfield Exploration.

USA Allcap Stock Only Model

Recently, Mosaic, Inc. [MOS] (see Figure 3) became overvalued and was removed from the portfolio. The stock contributed nicely this year with a gain of over 30%. It is being replaced by Consolidated Communications [CNSL] and H&R Block [HRB].

Model Changes – USA Portfolio

Macy’s goes Overvalued and Kindred Healthcare is taken private by TPG. Applied Materials added.

USA Model Stock Portfolio – Stock Only

The USA Stock Only portfolio model had one stock that became overvalued. Plantronics [PLT] reaching 132.9% Fv, and providing a 75% return. Monsanto [MON] was recently acquired by Bayer of Germany. Twenty-three stocks appear as possibilities to replace these two stocks. We narrowed that down to four Consumer Discretionary stocks

USA Model Portfolio – Stock Only

The USA Stock Only portfolio model had six stocks that became overvalued this month. ArcBest Corporation [ARCB] has reached 143.5% Fv, providing a 154% return, eHealth, Inc. [EHTH] has reached 140.7% Fv, providing a 24% return, Ensco Plc [ESV] has reached 155.3% Fv, providing a loss of 19%, Greenhill & Company has reached 176.9% Fv, providing a 67% return National Oilwell Varco [NOV] has reached 129.1% Fv. providing a 33% return, Valero Energy [VLO] has reached 129.9% Fv providing a 117% return.

U.S. AllCap Active Model Portfolio

Hess and Marathon Petroleum become Overvalued and Leave the Portfolio Model. Alliance Data Systems added. Investing in Information Technology was designed to reduce the existing 6.7% underweight to LargeCap technology. The buy of Alliance Data has successfully reduced the underweight to 5.2%

U.S. AllCap Active Model Portfolio

The U.S. AllCap Active Stock Only portfolio model had one stock become overvalued in March, Comtech Telecommunications [CMTL]. The stock reached 160.0% Fv (Fair Value). Contech Telecommunications was a strong contributor to the portfolio gaining 164% growing to represent 2.3% of the portfolio.

U.S. Model Portfolio – Stock Only

.The U.S. Stock Only Model Portfolio has one stock that has become overvalued this month. The stock is Comtech Telecommunications [CMTL] at 167.05 Fv. Comtech was a strong contributor to the portfolio. Comtech is a

Portfolio: U.S. Stock Only

Noble, Occidental Petroleum, NetApp out of portfolio. Gilead Sciences added to current position. Allergan and Scana new to portfolio. Sectors weights improved as a result of today’s changes. Financials were reduced by 0.6 percentage points thereby reducing the overweight condition. The same is true for Information Technology. The earlier underweight condition in Health Care was also improved by adding 2.1 points to the overall allocation. The sector is now within 0.2 points of the target allocation. Utilities also improved by reducing the earlier underweight position by 0.8 points and now the allocation is within 0.1 points.

Portfolio: U.S. Sector Only: LargeCap

The portfolio described in this report is designed to provide a market exposure according to the relative fair valuation of each sector within the LargeCap market. Sectors that are currently the most overvalued are reduced in allocation in proportion to the degree of overvaluation while sectors that are the most undervalued will see an increase in allocation in proportion to the degree of undervaluation. This is done to place investments in the area of highest probability in improving the portfolio.