Pruned Paired Trades

Today I made significant changes to 20% of the model portfolio.  Paired trades (winners & losers) were sold in an effort to mitigate further risk and harvest some long term capital gains. The liquidation was spurred by this week’s unexpected resignation of Intel’s CEO and also the revelation that Starbucks’ sales are decelerating in China.Continue reading “Pruned Paired Trades”

GE:  Impact of being dropped from the DOW

It’s been a bad 12 months for General Electric.  The latest negative news to hit the stock is that GE might be dropped from the DOW.  How detrimental would this be?  Maybe less than you’d think. September 20, 2013 was the last time there was a major shakeup in the DOW.  Bank of America (BAC),Continue reading “GE:  Impact of being dropped from the DOW”

New CEO effect: GE & Walmart

I like purchasing stocks of out-of-favor established dividend paying companies that are in a turnaround phase.  A little more than two years ago, I purchased Walmart because unlike the critics that saw an imminent Amazon induced bankruptcy, I thought the new CEO was moving the company in the right direction. I stated, “Walmart is evolvingContinue reading “New CEO effect: GE & Walmart”

Now overweight in Contrarian VALUE position with purchase of: IBM, GE & INTC

Today I added IBM, GE & INTC to the contrarian or value portion of the portfolio.  Bringing that strategy to an overweight position of roughly 36%, just behind International which accounts for 40% of the portfolio. All seven contrarian stocks (DIS, GE, IBM, INTC, SBUX, VZ, WMT), as the name contrarian implies, are out-of-favor…but IContinue reading “Now overweight in Contrarian VALUE position with purchase of: IBM, GE & INTC”