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 Market stock in the Information Technology sector and the Technology Hardware industry group. The company designs, develops and produces advanced communications products.

With this stock being removed from the portfolio the current asset allocation has a slight overweight to Core and Aspirational stocks and a corresponding underweight to Market stocks of -8.4%.

In terms of market capitalization, the allocation favors SmallCap and MidCap stocks at 3.9% and 2.5% overweight. Large Cap stocks holds the largest allocation, but at 78.2% it is -11.8% underweight.

Within sector allocations the portfolio is currently overweight in Consumer Staples, Financials, and Materials. It is underweight in Energy and Industrials. It is very close to target weights in Consumer Discretionary, Health Care, Information Technology and Telecommunication Services.

For the portfolio we wish to add stock(s) that have a Market characteristic within the Large Cap capitalization category and located in Energy. There are 4 stocks that are considered BUYs within the LargeCap Energy sector. The list was narrowed down to two stocks: Andeavor [ANDV] and Baker Hughes [BHGE]. Both stocks are close to one another in terms of fair value and Baker Hughes has a better free cash flow/share.

 

Adding Baker Hughes to the portfolio increased the allocation to the Market category by 1.2% moving Market to 59.0% and reducing the underweight to -7.3%.

It also increased the allocation to LargeCap classification stocks to 78.8 an increase of 0.6 points, thereby reducing the underweight to -11.2%.

Sectors weights also improved as a result of today’s change. Energy allocation is now within 0.5% of our target at 5.6%. Seven sectors are within 1% of our targets. The remaining two sectors, Consumer Staples and Financials both moved closer to target weights.

Ticker	Shares	Name	Pr/Share	Value	Index	Sector	Industry	%ofPort	Yield	B/H/S	CMA
BWA	1194	BorgWarner Inc.	$       51.44	$            61,419	S&P500	Consumer Discretionary	Automobiles & Components	2.58%	1.32	H	ASPIRATIONAL
DAN	940	Dana Incorporated	$       26.41	$            24,825	S&P400	Consumer Discretionary	Automobiles & Components	1.04%	1.51	H	ASPIRATIONAL
F	735	Ford Motor Company	$       11.15	$               8,195	S&P500	Consumer Discretionary	Automobiles & Components	0.34%	5.38	B	MARKET
GM	684	General Motors Company	$       37.94	$            25,951	S&P500	Consumer Discretionary	Automobiles & Components	1.09%	4.01	H	MARKET
HOG	207	Harley-Davidson, Inc.	$       44.14	$               9,137	S&P500	Consumer Discretionary	Automobiles & Components	0.38%	3.35	H	MARKET
HBI	1017	Hanesbrands, Inc.	$       19.70	$            20,035	S&P500	Consumer Discretionary	Consumer Durables & Apparel	0.84%	3.05	B	MARKET
TPR	305	Tapestry, Inc.	$       52.77	$            16,095	S&P500	Consumer Discretionary	Consumer Durables & Apparel	0.68%	2.56	H	MARKET
VFC	689	V.F. Corporation	$       75.46	$            51,992	S&P500	Consumer Discretionary	Consumer Durables & Apparel	2.19%	2.44	H	MARKET
HRB	297	H&R Block Inc.	$       27.05	$               8,034	S&P500	Consumer Discretionary	Consumer Services	0.34%	3.55	B	CORE
CBS	296	CBS Corp. cl B	$       50.95	$            15,081	S&P500	Consumer Discretionary	Media	0.63%	1.41	H	MARKET
DISCA	293	Discovery, Inc	$       23.21	$               6,801	S&P500	Consumer Discretionary	Media	0.29%	–	H	MARKET
TWX	210	Time Warner Inc	$       96.28	$            20,219	S&P500	Consumer Discretionary	Media	0.85%	1.67	H	CORE
BKE	414	Buckle Inc.	$       19.50	$               8,073	S&P600	Consumer Discretionary	Retailing	0.34%	5.13	B	MARKET
GPS	412	Gap Inc.	$       31.74	$            13,077	S&P500	Consumer Discretionary	Retailing	0.55%	3.06	H	MARKET
JWN	166	Nordstrom, Inc.	$       49.32	$               8,187	S&P500	Consumer Discretionary	Retailing	0.34%	3.00	H	MARKET
M	274	Macy’s Inc.	$       28.90	$               7,919	S&P500	Consumer Discretionary	Retailing	0.33%	5.22	H	MARKET
WSM	192	Williams-Sonoma Inc.	$       55.32	$            10,621	S&P400	Consumer Discretionary	Retailing	0.45%	2.82	B	MARKET
CVS	719	CVS Health Corporation	$       65.65	$            47,202	S&P500	Consumer Staples	Food & Staples Retailing	1.98%	3.05	B	MARKET
KR	450	Kroger Company	$       23.69	$            10,661	S&P500	Consumer Staples	Food & Staples Retailing	0.45%	2.11	H	CORE
SVU	143	SUPERVALU, Inc.	$       15.61	$               2,232	S&P600	Consumer Staples	Food & Staples Retailing	0.09%	–	B	ASPIRATIONAL
XLP	7	SPDR Cons Staples Slct	$       53.25	$                  373		Consumer Staples	Food & Staples Retailing	0.02%	3.14		MARKET
ADM	255	Archer Daniels Midland	$       43.50	$            11,093	S&P500	Consumer Staples	Food Beverage & Tobacco	0.47%	3.08	H	MARKET
FLO	1618	Flowers Foods Inc	$       21.15	$            34,221	S&P400	Consumer Staples	Food Beverage & Tobacco	1.44%	3.22	H	CORE
KO	249	Coca-Cola Company	$       43.46	$            10,822	S&P500	Consumer Staples	Food Beverage & Tobacco	0.45%	3.59	H	CORE
TSN	130	Tyson Foods Inc	$       74.27	$               9,655	S&P500	Consumer Staples	Food Beverage & Tobacco	0.41%	1.62	H	CORE
CLX	37	Clorox Company	$     128.49	$               4,754	S&P500	Consumer Staples	Household & Personal Products	0.20%	2.99	H	CORE
COTY	4529	Coty, Inc.	$       18.82	$            85,236	S&P500	Consumer Staples	Household & Personal Products	3.58%	2.66	H	CORE
PG	353	Procter & Gamble Co.	$       78.97	$            27,876	S&P500	Consumer Staples	Household & Personal Products	1.17%	3.49	H	CORE
BHGE	2100	Baker Hughes, a GE Co. Cl A	$       30.92	$            64,932	S&P500	Energy	Energy	2.73%	2.33	B	MARKET
ESV	87	Ensco plc cl A	$          4.76	$                  414	S&P400	Energy	Energy	0.02%	0.84	H	ASPIRATIONAL
HES	109	Hess Corporation	$       48.98	$               5,339	S&P500	Energy	Energy	0.22%	2.04	H	ASPIRATIONAL
MPC	473	Marathon Petroleum Corp	$       69.68	$            32,959	S&P500	Energy	Energy	1.39%	2.64	H	ASPIRATIONAL
NOV	338	National Oilwell Varco Inc	$       36.89	$            12,469	S&P500	Energy	Energy	0.52%	0.54	H	MARKET
VLO	187	Valero Energy Corp.	$       93.79	$            17,539	S&P500	Energy	Energy	0.74%	3.41	H	MARKET
BBT	548	BB&T Corp	$       55.04	$            30,162	S&P500	Financials	Banks	1.27%	2.40	H	MARKET
FITB	1264	Fifth Third Bancorp	$       33.72	$            42,622	S&P500	Financials	Banks	1.79%	1.90	H	ASPIRATIONAL
KEY	1675	KeyCorp	$       20.96	$            35,108	S&P500	Financials	Banks	1.48%	2.00	H	ASPIRATIONAL
OFG	2157	OFG Bancorp	$       12.05	$            25,992	S&P600	Financials	Banks	1.09%	1.99	B	ASPIRATIONAL
USB	572	U.S. Bancorp	$       53.26	$            30,465	S&P500	Financials	Banks	1.28%	2.25	H	MARKET
AMP	63	Ameriprise Financial, Inc.	$     157.10	$               9,897	S&P500	Financials	Diversified Financials	0.42%	2.11	H	ASPIRATIONAL
AXP	363	American Express Co.	$       95.61	$            34,706	S&P500	Financials	Diversified Financials	1.46%	1.46	H	MARKET
FII	538	Federated Investors Inc.	$       33.67	$            18,114	S&P400	Financials	Diversified Financials	0.76%	2.97	H	MARKET
GHL	1207	Greenhill & Co Inc.	$       20.00	$            24,140	S&P600	Financials	Diversified Financials	1.01%	1.00	H	MARKET
IVZ	291	Invesco Ltd.	$       33.20	$               9,661	S&P500	Financials	Diversified Financials	0.41%	3.49	H	ASPIRATIONAL
LM	627	Legg Mason Inc.	$       41.38	$            25,945	S&P400	Financials	Diversified Financials	1.09%	2.71	H	ASPIRATIONAL
STT	165	State Street Corp	$     106.87	$            17,634	S&P500	Financials	Diversified Financials	0.74%	1.57	H	ASPIRATIONAL
AFL	204	AFLAC Inc.	$       90.49	$            18,460	S&P500	Financials	Insurance	0.78%	2.30	H	MARKET
ALL	464	Allstate Corporation	$       97.53	$            45,254	S&P500	Financials	Insurance	1.90%	1.89	H	CORE
HIG	244	Hartford Financial Services	$       53.93	$            13,159	S&P500	Financials	Insurance	0.55%	1.85	H	MARKET
MET	350	MetLife, Inc.	$       47.32	$            16,562	S&P500	Financials	Insurance	0.70%	3.38	H	ASPIRATIONAL
KND	588	Kindred Healthcare Inc.	$          9.45	$               5,557	S&P600	Health Care	Health Care Equipment & Services	0.23%	–	H	MARKET
AGN	165	Allergan plc.	$     168.96	$            27,878	S&P500	Health Care	Pharmaceuticals & Biotechnology	1.17%	1.70	B	MARKET
AMGN	117	Amgen Inc.	$     188.24	$            22,024	S&P500	Health Care	Pharmaceuticals & Biotechnology	0.93%	2.80	H	MARKET
BMY	610	Bristol-Myers Squibb Co.	$       66.60	$            40,626	S&P500	Health Care	Pharmaceuticals & Biotechnology	1.71%	2.40	H	MARKET
GILD	677	Gilead Sciences Inc.	$       79.74	$            53,984	S&P500	Health Care	Pharmaceuticals & Biotechnology	2.27%	2.86	B	MARKET
MRK	772	Merck & Co. Inc.	$       55.67	$            42,977	S&P500	Health Care	Pharmaceuticals & Biotechnology	1.81%	3.45	H	MARKET
PFE	2787	Pfizer Inc.	$       36.78	$          102,506	S&P500	Health Care	Pharmaceuticals & Biotechnology	4.31%	3.70	H	MARKET
EMR	25	Emerson Electric Co.	$       72.38	$               1,810	S&P500	Industrials	Capital Goods	0.08%	2.68	H	MARKET
ETN	25	Eaton Corporation, plc	$       80.98	$               2,025	S&P500	Industrials	Capital Goods	0.09%	3.26	H	MARKET
GE	879	General Electric Company	$       14.31	$            12,578	S&P500	Industrials	Capital Goods	0.53%	3.35	B	MARKET
IR	24	Ingersoll-Rand Plc	$       89.48	$               2,148	S&P500	Industrials	Capital Goods	0.09%	2.01	H	MARKET
JCI	1590	Johnson Controls, Inc.	$       36.70	$            58,353	S&P500	Industrials	Capital Goods	2.45%	2.83	B	MARKET
UTX	24	United Technologies Corp	$     128.33	$               3,080	S&P500	Industrials	Capital Goods	0.13%	2.18	H	MARKET
ARCB	531	ArcBest Corporation	$       35.50	$            18,851	S&P600	Industrials	Transportation	0.79%	0.90	H	ASPIRATIONAL
CHRW	497	C.H. Robinson Worldwide, Inc.	$       92.14	$            45,794	S&P500	Industrials	Transportation	1.93%	2.00	H	CORE
UPS	802	United Parcel Service Inc.	$     110.91	$            88,950	S&P500	Industrials	Transportation	3.74%	3.28	H	CORE
ADI	1439	Analog Devices Inc.	$       94.15	$          135,482	S&P500	Information Technology	Semiconductors and Semiconductor Equipment	5.70%	2.04	H	MARKET
QCOM	1056	Qualcomm Inc.	$       60.62	$            64,015	S&P500	Information Technology	Semiconductors and Semiconductor Equipment	2.69%	3.76	H	MARKET
IBM	324	IBM Corp	$     160.26	$            51,924	S&P500	Information Technology	Software & Services	2.18%	3.74	H	MARKET
MANH	710	Manhattan Associates, Inc.	$       44.27	$            31,432	S&P400	Information Technology	Software & Services	1.32%	–	H	ASPIRATIONAL
SYMC	5	Symantec Corporation	$       27.37	$                  137	S&P500	Information Technology	Software & Services	0.01%	1.10	H	MARKET
WU	968	Western Union	$       20.04	$            19,399	S&P500	Information Technology	Software & Services	0.82%	3.79	H	MARKET
XLK	1800	SPDR Select Technology	$       69.61	$          125,298		Information Technology	Software & Services	5.27%	1.37		MARKET
AAPL	139	Apple Inc.	$     178.02	$            24,745	S&P500	Information Technology	Technology Hardware & Equipment	1.04%	1.42	H	MARKET
DBD	1400	Diebold Incorporated	$       16.80	$            23,520	S&P400	Information Technology	Technology Hardware & Equipment	0.99%	2.38	B	ASPIRATIONAL
PKE	2993	Park Electrochemical	$       17.91	$            53,605	S&P600	Information Technology	Technology Hardware & Equipment	2.25%	2.23	H	CORE
PLT	606	Plantronics Inc.	$       58.25	$            35,300	S&P400	Information Technology	Technology Hardware & Equipment	1.48%	1.03	H	MARKET
BMS	291	Bemis Company Inc.	$       44.98	$            13,089	S&P400	Materials	Materials	0.55%	2.76	H	CORE
FMC	2	FMC Corporation	$       82.29	$                  165	S&P500	Materials	Materials	0.01%	0.80	H	ASPIRATIONAL
MON	192	Monsanto Co	$     117.77	$            22,612	S&P500	Materials	Materials	0.95%	1.83	H	CORE
MOS	1363	Mosaic Co. (The)	$       26.10	$            35,574	S&P500	Materials	Materials	1.50%	0.38	H	MARKET
ZEUS	1001	Olympic Steel Inc.	$       22.36	$            22,382	S&P600	Materials	Materials	0.94%	0.36	H	ASPIRATIONAL
CTL	652	CenturyLink, Inc.	$       17.13	$            11,169	S&P500	Telecommunication Services	Telecommunication Services	0.47%	12.61	B	MARKET
FTR	133	Frontier Communications Corp.	$          7.65	$               1,017	S&P600	Telecommunication Services	Telecommunication Services	0.04%	–	B	ASPIRATIONAL
T	424	AT&T Inc.	$       37.00	$            15,688	S&P500	Telecommunication Services	Telecommunication Services	0.66%	5.41	H	CORE
ETR	75	Entergy Corp	$       78.88	$               5,916	S&P500	Utilities	Utilities	0.25%	4.51	H	CORE
EXC	270	Exelon Corp	$       38.38	$            10,363	S&P500	Utilities	Utilities	0.44%	3.60	H	CORE
FE	1006	FirstEnergy Corporation	$       33.89	$            34,093	S&P500	Utilities	Utilities	1.43%	4.25	B	CORE
PPL	107	PPL Corporation	$       28.12	$               3,009	S&P500	Utilities	Utilities	0.13%	5.83	BW	CORE
SCG	460	Scana Corporation	$       40.21	$            18,497	S&P500	Utilities	Utilities	0.78%	6.09	B	CORE