This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Spring Cleaning Time For The Growth & Momentum Portfolio

By Robert Freedland

The Growth & Momentum portfolio that I have managed on Covestor since April 15, 2009 had a positive performance in May.

This model was recently renamed to "Growth and Momentum" from "Buy and Hold, Value" to more accurately reflect my actual management strategy. I have been anxious to try to limit losses and try to sell weak stocks quickly and to sell portions of appreciating stocks slowly.

In my opinion, many of the new holdings in this model are truly momentum stocks with growing earnings and associated stock appreciation chance.

During the month of May, 2013, I sold my position in ARM Holdings (ARMH) stock after it had accrued a small loss. By the end of the month ARMH closed out even lower than my sale price. The other position that was closed out was Fiserv (FISV), a financial services technology company, that was sold early in May also after accruing a small loss.

FISV closed out the month a little higher than my sale price so I believe my record for the month is 50% in making wise decisions, at least for the month.

Both of these sales were due to my own desire to try to limit losses to the lowest level possible, and also to part company with investments if their own price performance from my perspective is less that satisfactory.

Two of my holdings in this portfolio have been doing very well and I sold small portions of these holdings to 'lock in' some of the capital appreciation as well as to essentially rebalance the portfolio so that the holdings would be relatively evenly weighted.

These sales go along with my long-standing practice of selling my losing stocks 'quickly and completely' and my gaining stocks 'slowly and partially.' For that reason, I sold a portion of FleetCor Technologies (FLT), a transportation technology company, early in May to lock my gains and keep position evenly weighted.

The other company that I sold a portion of for a gain was Lumber Liquidators (LL). Neither of these stocks were sold because I thought they were doing poorly. Rather, as part of a disciplined management of the portfolio, I chose to sell a portion of two holdings to keep my positions balanced and diversified.

The two new holdings in the portfolio as of the end of May were J.M. Smucker company (SJM), best known for its JIF peanut butter brand and its many quality Jams and Jellies among other consumer stocks.

In addition, I purchased shares of Financial Engines (FNGN), which I view more of a momentum investment with a richly priced trailing price-to-earning ratio. The company has been growing quickly in the business of advising many employees how to diversify their investments in their retirement accounts among other services.

The company reported strong results on May 7, 2013 with adjusted earnings climbing 50%, revenue increasing 29.5%. The company beat expectations of both earnings and revenue reported.

Looking forward in this model, I shall strive to limit losses to small amounts and work hard to step aside should any of these holdings weaken. Currently, Church & Dwight (CHD), Financial Engines (FNGN), and Smucker (SJM) have small losses and will be closely watched for possible sale. On the other hand, Barrett Business Services (BBSI), FleetCor (FLT), and Lumber Liquidators (LL) sport some gains since acquisition.

Thank you to Covestor for your continued trust and to those of you who have stayed with me the past few years, I also thank you and shall continue to strive to perform at a satisfactory level to earn your continued participation in this model.

The investments discussed are held in client accounts as of May 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.

Robert Freedland

Robert Freedland

Robert has over 40 years of investment experience and is a full-time optical surgeon. He uses his expertise in the

null

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

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