No Guns, Just Stuff.

I really hate to write about such mundane things as investing and life, because they don’t get nearly the page views of my rants on gun culture and the ridiculous state of politics in America - but here we go.

What have I been doing lately, while the market has been going nuts (up and down) and some people have been scared out of it. I hate to sell and trade, but sometimes, it’s necessary.

I sold my position in Extreme Networks (EXTR) after a double over the past year.  In retrospect, I could have sold it much higher, but I usually wait for earnings, and this latest report was absurdly negative, so I decided to cash-in my profit rather than wait for the upturn, which may take more than a year.

I also sold 25% of my stake in Square (SQ).  As much as I love the company I felt like the stock had run-up to $55 from my purchase price of $26, so I felt it prudent to take some profits and watch it go, if it does.  There has been some selling over a recent battle with PayPal (PYPL) and frankly, I’m not worried.  The way things are today, the market reacts negatively to any sort of competition.  Whether it’s Amazon, Costco, or WalMart, it seems that there is little tolerance for any sort of competitive interference.
it’s odd, because the market itself is based on competition, and companies like Square have been able to prosper in the face of it - so, I just turn a deaf ear to it.

Where is the new money going?  General Electric (GE), which I have been buying since its seeming low at around $12.  It’s difficult to turn a battleship, and GE may be one huge battleship that will take years to turn.  As for me, I’m still buying now that the stock is at the $15 range, and I continue to be looking at it as a turnaround story.

UnderArmour (UA) has run-up too much for my liking recently.  I started buying it in the $11 range, and was hoping it would stay there for a while so that I could accumulate more.  Unfortunately, a couple of positive earnings quarters and upgrades have sent the stock into the high-teens, and I’ll hold it here waiting for either a positive catalyst or a negative that would prompt me to buy more.

DelTaco (TACO) continues to be a hold. The stock has been quietly gaining ground as the casual dining segment begins to find its footing.  As I have said, I have faith in management, and I own enough that I don’t look to add more, but merely hold on and wait for the market to catch up with this wonderful story.  It may take a year or more, but - where am I going?

Regional banks are a new story.  With rates rising, and tax breaks making the space a reliable place to be, I continue to hold Key Bank (KEY) and have put in an order to buy more if it goes to $20. The stock is fairly valued here, but could dip into the 20-range, which I feel would make it a buy.  There are other regionals, including Regions Financial (RF) Huntington Bancshares (HBAN) Philly-local The Bancorp (TBBK) and OFG Bancorp (OFG) that are compelling, but - do your due diligence.

Oil continues to go higher, and my investment in Cenovus (CVE) has been a winner, running from $7.25 to $11.00 as the price of oil has risen.  The thing about investing is, you can’t get worked-up over short-term pain that you may experience as a consumer.  Rather, you have to appreciate that it’s going to happen, and take advantage.  I hate oil like a passion, but there’s no doubt that the place to be is in the oil and natural gas space.  It’s not too late.  CVE is valued at $21 a share.  Wait for a dip and get in.

Meanwhile, long-term holdings Pfizer (PFE) and Cisco Systems (CSCO) continue to chug along.  Even though it appeared that there was a selling opportunity in Cisco after their latest earnings report, I felt like the CEO had enough positive things to say that the long-term outlook was sunnier than the short-term, which is where we tend to look.
As for Pfizer, the long-term story is more compelling than the short-term selling opportunity.  Both CSCO and PFE pay an appealing dividend, so I’m content to be paid to wait.

Meanwhile, I’m looking for an opportunity to sell Acco Brands (ACCO) as I feel that I’ve waited long enough for something to happen. Looking in the $13 range to get out.

Still compelling: Microsoft, Salesforce, Hanes Brands, Allergan, and Slumberger.  Do your research.