RSS feedJust announcing a few portfolio moves today. As the market outlook seems to be stabilizing and we seem to be entering a near term rally (no speculation on how long it will last), I’ve decided to move around some positions in order to try to take advantage.
Portfolio A
I realize that in the last few months I seem to have strayed from the actively traded mentality in Portfolio A. It seems to have taken its toll and, now, for better or worse, I am constrained to some degree in my positions in Google and Apple. Humana, though a terrific short term pick, turned into an unmitigated disaster and after allowing a few days for the stock to settle in its new price range, I’ve removed it from the portfolio in favor of Centex (CTX). This is a purely technical move and my intention is only to hold the stock for a week or two at most. Price target is $30 which would equate to just over a 10% gain though I will be watching for resistance along the way.
Recent news from China Mobile has been strong with profits increasing 32% year over year and JP Morgan and Davenport issuing decent to favorable ratings on it. Despite this, the stock cracked its $70 support and traded in the high 60s last week. It seems to have rebounded swiftly today, but this position is now on watch. If a sustained uptrend is not found, I will cut and run.
Portfolio B
In my post on event risk, I mentioned that I remained positive on my outlook for Aetna provided that management was being truthful in its assessment of its business climate. This has not changed. That being said, weighing the risk of Aetna coming out with bad news in the coming quarters against potential gain from other positions, I decided to make a move today and sold my Aetna position and replaced it with an equal weight in Bank of America. While we may not be out of trouble in financial markets just yet, I feel that Bank of America is well positioned and trading at a value considering its near 6% dividend and assuming that it will close on its Countrywide acquisition.
I promise to provide more in depth analysis of these moves in the coming days. But, for now, check out my post regarding the Equity Income Strategy in January for some insight into my Bank of America position.
