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Apple, where the perfect is the enemy of the good

In May 2014, I added two positions to my portfolio. Lukoil (LUKOY), a Russian company engaged in the exploration, production, refining, marketing and distribution of crude oil and petroleum products.

In March Russian stocks took a hit after President Barack Obama said the U.S. was considering sanctions against key economic sectors in Russia (including financial services, oil and gas, metals and mining and the defense industry) if Moscow made military moves into eastern and southern Ukraine.

Given this context, I would call this an opportunistic investment on my part. LUKOY is also paying a healthy dividend of 4.14%. Once the Ukranian crisis ends, in my opinion this stock could possibly appreciate.

The other position I added to my portfolio was also an opportunistic trade. Ralph Lauren (RL) has been down -13.25% this year along with the apparel manufacturing industry as a whole.

Other house brands such as Aeropostale (ARO), and Guess (GES) have been trending down as well in 2014. RL pays a 1.17% dividend and has very little debt. In my opinion, the company's recent decline in sales is due to tough economic times and shifting market trends, but will return to normal sooner or later.

Liquidations in May 2014

I closed two positions because I believed there were better opportunities in the market. While I think these companies were worth holding, I found some undervalued jewels with better upside potential.

The positions I liquidated in May were Qualcomm (QCOM) and US Bancorp (USB). If all things stay equal in June, I won't be liquidating any other positions. I am comfortable with the 12 stocks I currently hold in my portfolio.

DISCLAIMER: 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. Past performance is no guarantee of future results.

Libardo Lambrano

Libardo Lambrano

I am a value investor, an investment philosophy that boils down to investing in undervalued, under-researched and unpopular companies. Reasons

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