Stock Holdings Final

Topics: Revenue, Biogen Idec, Stock market Pages: 6 (1594 words) Published: April 28, 2015
Stock Holdings

Why we kept these stocks;

Focus on FUTURE & what was created or expanded. Compay changes in management or business structure. Etc.


Many high profile insider investments lead me to believe in the company. Mr. Morfit, General Director of Microsoft, is stepping up to the plate again and buying more shares on a recent pullback. This leads us to believe he is very pleased with the new CEO and sees big things in the future for this ‘mature tech’ stock. We’re overall very comfortable with the future outlook & direction of the tech giant.

The Geo Group (GEO)

The GEO Group is a real-estate investment trust. They are profitable and growing sustainably. They specialize exclusively in the ownership, leasing and management of correctional, detention and re-entry facilities. They also provide provisions of community-based services and youth services. This all takes place in the United States, Australia, South Africa, the United Kingdom and Canada. With the prison system as unbelievably full as it currently is, (US currently has the largest prison population the country has ever seen) and no reform on the horizon for these systems in the foreseeable future, this is a very safe & profitable investment.

Costco (COST)

Costco does one thing better than any other store of its kind. Supply chain & distribution management. Where most groceries stores take on average 1 &1/2 -2 weeks to receive fresh products from their sources, Costco averages just over 4 days. When you purchase milk from Costco, the expiration date is consistently 2 to 3 weeks longer than that of traditional grocery stores. With their large buying power, they are able to sustain massive growth while maintaining this core value. Intrinsically this places them as a front-runner in the foreseeable future for public appeal.

United States OIL ETF (USO)

Energy is a smart long-term investment. We will always need more and more. As it’s a company with pipelines already in the ground that is consistently pumping oil, security isn’t an issue. Large speculators are holding large lengthy positions. With such a large long position, it could take a while to unload these positions and it will create significant selling pressure on oil. As we’re swinging back around toward summer, these numbers are rebounding back up. With the economy in an upturn, this summer’s car sales will increase and more drivers will be using the gasoline to get to their favorite destinations. It’s a safe seasonal position.

Vanguard Small Cap Value ETF (VBR)

Vanguard Small Cap Value ETF:  Why did we keep it?  Small Cap Value has been one of the best performing asset classes over the long term.  Over the past 87 years, small cap value has returned an average of 13.6% per year.  Compare this to the S&P 500, which returned 9.8% over the same time frame.  VBR is a great way to get diversified, low cost exposure to this robust but volatile asset class.

Why we sold these.

AT&T (T)
ATT reported earnings on Feb 12th that were 0.11 below analysts expectations.  As a result, many firms have revised their price targets down, with the average being $35.53.  Given that the stock is currently trading at 33.28 we feel as though the upside is limited and that we could find better opportunities elsewhere.

General Mills (GIS)
General Mills:  GIS is currently trading at $52.54 and is covered by 14 research analysts who have a consensus price target of $52.25.  On March 18th they released earnings which beat the street estimates by $0.03 but revenues were slightly lower from one year ago.  Based on the current valuation we believe the upside is limited and we can find better opportunities elsewhere.

Teco Energy Inc. (TE)

We sold Teco Energy Inc. because of two red flags. One, its highly unimpressive, 2014, fourth quarter earnings. Two, their was a large reduction in sale price of one of its coal subsidiaries to Cambrian Coal by $30 Million. Florida’s...
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