This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

ChipMos And Macquarie Infrastructure Delivered For The Model

Stocks in this article: IMOSMIC

March was a very good month for most Peattie Capital Reasonable Price portfolio, as the last earnings reports came in and shares responded favorably.

ChipMOS (IMOS) announced another buyback program on their March 18 earnings call, and that they expected to be listed on the Taiwan Exchange in the second quarter. Despite the company's subsequent 30% bounce, I reiterate my buy recommendation.

Macquarie Infrastructure Trust (MIC) continues to post strong results, and disclosed in their conference call that they would be in a position to raise the dividend again after completing a refinancing at their Atlantic Aviation subsidiary (expected by the end of June).

MIC has already raised the payout from $0.80 annually a year ago to $2.75 currently. The market's anticipation of further increases is probably what is driving the units to new highs, in my opinion, and MIC has returned 104% since November, 2011.

I have stated repeatedly that I believe in a "market of stocks" rather than a "stock market" (or words to that effect).

In other words, reading headlines, interpreting them, and then buying or selling stocks based on them is a very difficult way to grow a portfolio over time, in my opinion. Who thought six months ago, for example, that stocks would be setting record highs before the end of the first quarter of 2013?

That said, I also believe in being aware of the environment. To my way of thinking, the combination of liquidity, reasonable valuations, and lack of investment alternatives are all favorable "big picture" elements.

In addition, I think the extraordinary amount of cash on corporate balance sheets and the reduced number of shares available to trade on the exchanges (as a result of mergers and relatively few IPOs) are helpful.

Finally, I like the continued skepticism of much of the investing public (as seen by the still tepid inflows into equity mutual funds), and from a technical perspective, I like the behavior of the transports, which continue to perform very well.

On balance, I would like to see a bit more fear, as sentiment indicators such as investor polls have fluctuated near excessive optimism, and a correction of 5%-10% would be healthy, based on what I believe today.

How can active portfolio management seek to outperform? Slightly off topic, I know, but this question comes up frequently, so I herewith address it. The best answer I've seen is from David Swensen, CIO of Yale's Endowment, considered to be one of the best managers of this era.

According to him, managers need to know the overall environment, to run concentrated portfolios, to do extensive research on investments so as to know when a selloff has the potential to be a buying opportunity, to have patience, and to be willing to deviate from an index.

The investments discussed are held in client accounts as of March 31, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.

Bill Peattie

Bill Peattie

Bill Peattie, Founder and Managing Member at Peattie Capital, has been managing client portfolios since May, 2000. Previously, Bill spent

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs