By Yale Bock
The Concentrated GARP portfolio had a poor month of returns in August as the model fell 6.0% for the month, while the S&P 500 index lost 3.5%. Trading volumes in August were low, so I would expect to see September produce far greater volumes.
There are plenty of potential obstacles on the horizon, including potential United States involvement in the Syrian conflict, the debt ceiling and budget negotiations at the beginning of October, and elections in Germany. Still, once we turn the corner and head into the fourth quarter, history shows the last part of the year has traditionally proven much more constructive for stocks. Here’s a rundown on our holdings.
Gigamedia (GIGM)– After the August earnings report , we sold the remaining portion of this holding. This was a terrible drag on the portfolio and anything that does not go bankrupt could perform better than this did.
Corelogic (CLGX) is an information provider which specializes in data about real estate related industries. A large part of their data centers on property and mortgage information services. In addition, they provide credit information to a variety of industries as well. The company had a good earnings report, raised and updated their guidance for 2013, and upped their buyback.
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 reported in line earnings 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 smart phones.
In addition, they make sound systems for a wide variety of customers such as movie studios as well as network and satellite television providers. The company reported earnings which were better than expected estimates but reduced guidance for the rest of 2013.
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. The company reported earnings on August 5, 2013 and recently expanded their credit line with Wells Fargo.
Cash America (CSH) is the largest operator of pawn shops in the United States. The company reported disappointing earnings for the second quarter of 2013, but has since purchased more pawn shops in highly regulated states.
Telefonica Brasil (VIV) is new holding, the second largest telecom and cable provider in Brazil. With the recent currency and equity market weakness in Brazil, the stock is a new addition to the portfolio.
To invest in the Concentrated GARP Portfolio, click here.
The investments discussed are held in client accounts as of August 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.
The post Why market choppiness may ease in Q4 appeared first on Smarter Investing
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 + 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