Earnings Galore! BGCP TAL Out, RHT, SQ In

Out of the companies in MM28 portfolio that reported earnings last week, only ALGN stood out. The stock jumped more than 16% after the earnings release. At the same time, Chinese educational stocks, EDU and TAL went down heavily. Though, near term looks not so good for these stocks, mid to long-term, they will do very good.

Keeping all these in mind, we decided to sell BGCP and TAL from our portfolio and replace them with RHT and SQ.

Happy investing!

 

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Earnings! Earnings! No Change in Portfolio.

First of all, we will not make any changes to our portfolio this week.

Out of 28 stocks in our portfolio, there are only 2 (BGCP with -1.16% and CORT with -6.04%) which has a negative return. Since this is earnings season, we do not want to sell it right away unless we see a major news that impact the fundamentals of these companies. We do not know if the earnings will be good or bad, but, since we pick these stocks based on certain criteria, we expect them to perform well.

That said, last week, PYPL became the first company in our portfolio that reported the 3rd quarter earnings. Market liked it and the stock went up by 5.53% on Friday. So far, PYPL returned 42.96% since we added it on May 22, 2017.

This coming week, the following companies in our portfolio will report the quarterly earning:

  1. EDU
  2. MRCY
  3. CNC
  4. TAL
  5. ALGN
  6. BGCP

Happy investing!

 

No Change in Portfolio This Week. Also, Some Thoughts on Investment

There are no changes in portfolio this week. One of our holdings, CORT has gone down quite a bit in last week. As per the information available, this was because there was a miscommunication about the sales of the company. In some cases, this could be a suspicious thing. Investors might be thinking about that and based on that selling the stocks. Based on my past experience, there is a 50-50 chance for that the information might be wrong. Now a days, you cannot believe companies or the analysts. Our stake is that the company is a growth company. If there are issues with their sales, we will find out during their earnings announcement which will happen at the end of the month. The portfolio has 28 stocks, any negative impact by one stock can be managed.

Please see the return so far on the portfolio. The portfolio has returned more than twice of the S&P 500 return, which is an amazing feat.

Just for a comparison, how a $10,000 invested in various securities will perform in a 10-year period, I have produced a chart below. This assumes historical average rate for S&P 500, 401 K (assumes around 70% of S&P 500 return) and bank savings. If you got a return on average better than 70% of S&P 500 in your 401K, I can say, you are managing your 401K better.

comparison of investments

Below, you will see, if the MonkeyMoney portfolio (represented by MM28) and S&P 500 perform the same way they are performing this year.

comparison of investments MM 2017

MM Portfolio as of Sept 22, 2017

Company Ticker  Current Price   Shares   Cost Basis   Market Value   Gain  Gain %
UnitedHealth Group Inc UNH  $          193.03            16.00  $     3,127.60  $       3,088.48  $        (39.12) -1.25%
Adobe Systems Incorporat… ADBE  $          148.50            21.00  $     3,118.01  $       3,118.50  $            0.49 0.02%
Align Technology, Inc. ALGN  $          188.00            23.00  $     3,662.49  $       4,324.00  $        661.51 14.81%
Lam Research Corporation LRCX  $          176.73            24.00  $     3,800.72  $       4,241.52  $        440.80 12.18%
Stamps.com Inc. STMP  $          210.30            25.00  $     3,765.25  $       5,257.50  $    1,492.25 18.04%
Mastercard Inc MA  $          141.89            25.00  $     3,342.75  $       3,547.25  $        204.50 6.12%
Alibaba Group Holding… BABA  $          178.14            26.72  $     3,104.15  $       4,760.70  $    1,656.55 25.70%
NVIDIA Corporation NVDA  $          179.00            27.04  $     3,517.30  $       4,840.16  $    1,322.86 37.61%
Constellation Brands… STZ  $          201.81            35.00  $     6,950.59  $       7,063.35  $        112.76 1.62%
China Lodging Group… HTHT  $          120.36            37.00  $     4,316.25  $       4,453.32  $        137.07 3.18%
Global Payments Inc GPN  $            95.82            40.00  $     3,768.00  $       3,832.80  $          64.80 0.49%
CBOE Holdings, Inc CBOE  $          106.60            42.00  $     3,650.36  $       4,477.20  $        826.84 11.68%
Centene Corp CNC  $            92.22            44.00  $     3,742.12  $       4,057.68  $        315.56 5.87%
New Oriental Education… EDU  $            85.58            48.88  $     3,516.74  $       4,183.15  $        666.41 18.95%
PRA Health Sciences Inc PRAH  $            75.09            50.17  $     3,516.87  $       3,767.27  $        250.40 7.12%
Norwegian Cruise Line… NCLH  $            54.02            54.00  $     3,099.56  $       2,917.08  $     (182.48) -5.89%
Paypal Holdings Inc PYPL  $            65.08            71.85  $     3,566.98  $       4,676.00  $    1,109.02 31.09%
RealPage Inc RP  $            39.90            76.00  $     3,054.00  $       3,032.40  $        (21.60) -0.53%
Applied Materials, Inc. AMAT  $            47.77            80.00  $     3,748.40  $       3,821.60  $          73.20 4.45%
Autohome Inc (ADR) ATHM  $            64.17            82.00  $     3,745.82  $       5,261.94  $    1,516.12 40.47%
TransUnion TRU  $            45.85            85.00  $     3,676.65  $       3,897.25  $        220.60 4.27%
Mercury Systems Inc MRCY  $            49.80            88.00  $     3,739.04  $       4,382.40  $        643.36 7.83%
Fox Factory Holding Corp FOXF  $            41.50          104.00  $     3,742.40  $       4,316.00  $        573.60 8.08%
Taiwan Semicond. Mfg… TSM  $            37.77          107.00  $     3,869.21  $       4,041.39  $        172.18 1.71%
KEMET Corporation KEM  $            19.71          153.00  $     3,078.59  $       3,015.63  $        (62.96) -2.05%
Control4 Corp CTRL  $            28.62          199.72  $     3,517.09  $       5,715.99  $    2,198.90 62.52%
TAL Education Group… TAL  $            33.16          202.03  $     3,571.43  $       6,699.35  $    3,127.92 87.58%
Cash  $         130.65
Total  $100,000.00  $  116,920.55  $  16,920.55 16.92%