The Covestor Concentrated GARP portfolio had a poor month of returns in February as the model lost 0.7% for the month (net of fees), far less than the S&P 500 Index, which rose by .8%.
The new additions to the portfolio performed well in my opinion, and shock of shocks, we even got a little bump from GigaMedia (GIGM). Regarding the near future, sentiment continues to improve as investors are starting to warm up to the idea stocks are attractive relative to other asset classes.
The lingering question remains about the ultimate inflationary aspects of the various monetary stimulus measures governments all over the globe have implemented. Near term, at least in the markets view, the positive results outweigh the potential problems.
GigaMedia: With $100 million of cash on the balance sheet, its new Gigacloud business should begin operations in March. In my opinion, if the valuation would just get to the cash on the balance sheet, the stock would double.Digital Globe (DGI) is a satellite provider of commercial earth imagery and Information services. Digital Globe reported four quarter earnings which were better than expected. CoreLogic (CLGX): The company is an information provider which specializes in data about real estate related industries, including mortgage and default information. In addition, they provide credit information in a variety of industries as well. The company reported fourth quarter results and provided guidance for 2013. Cass Information Systems (CASS) provides information, invoice, and payment processing services to a wide variety of enterprises in the United States. Cass also has a small banking division as well. The company r eported earnings in line with expectations. Dolby Laboratories (DLB) provides audio and video products for the entertainment industry on a global scale. Much of their revenues come from licensing their technologies on personal computers, laptops, tablets, and smartphones. In addition, they make sound systems for a wide variety of customers, from movie studios, theatres, and network and satellite television providers. The company reported earnings which were better than expected estimates: Jamba Juice (JMBA) is a health food and beverage retailer with a presence in 26 states domestically, as well as operations in Canada, the Philippines, and South Korea. Jamba Juice reported earnings on March 5, 2012 which were in line with expectations. They also announced a new franchise agreement for development in Mexico: Cash America (CSH) is the largest operator of pawn shops in the United States. The company reported solid fourth quarter 2012 earnings and announced a buyback. Build A Bear Workshop (BBW): This company provides build your own teddy bears for small children. A value based play on a stock which has been decimated and is dirt cheap. Build a Bear announced fourth quarter 2012 earnings and the CEO is announcing her retirement. The balance sheet is strong with 45 million in cash and no debt. To invest in the Concentrated GARP Portfolio, click here:
Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures. For information about Covestor and its services, go to http://covestor.com or contact Covestor Client Services at (866) 825-3005, x703.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV