We are adding to our position in Continental (CLR) after the positive earnings announcement yesterday (but don’t chase, as the stock is currently up more than 6% today as I write this).
CLR missed on revenues, but improved costs & faster well-completions are setting this onshore driller apart from it competitors (Subscribe For Portfolio Access).
We also added to LABU, down 5% today, since the biotech sector is still a good ways off its highs ($60.00).
When LABU hits $30.00, we will look to exit shares.
Ford (F) is our new dividend play (4% yield), since we sold CVX recently for a 10% gain in 3 days.
We are looking to add to that name on a more significant pullback.
We like F because of low gas prices, stronger employment numbers, its 4% dividend, and new product cycle (where the Mustang, Fusion, & Edge are leading the way; last October, they posted their strongest sales numbers since 2004).
Lastly, Western Digital (WDC) is our new Technology play.
We were looking to park our spare cash somewhere for yield, and were in need of a CHEAP technology name to diversify the portfolio, so WDC fit the bill.
WDC stock is risky. Even though it trades at only 12x earnings, and yields about a 3% dividend, it just bought Sandisk for $19 billion.
The takeover could be just what WDC needed to bring it back from the dead, as it moves away from its traditional storage drives (HDD) into flash storage (SSDs).
The benefits from this deal, however, still remain in question. I am only buying for the yield, risk-reward, and valuation.
11/6/2015 1:25 P.M.
Continental Resources (CLR) continues its upward ascent today after reporting strong earnings, but we are taking no action the move.
We are looking to exit half of our CLR shares at $40.00, where resistance lies, then building back up to a full position again when we get the dip.
On the biotech front, LABU is seeing a lot of action today, as usual.
LABU started down 8% this morning (where we automatically rebalanced shares, since it was about a $300-$400 drop; (we rebalance positions every $500 up or down).
Then, one hour later, LABU moved into the green, and our position size increased by $500 to $4,500.
So, we had to rebalance LABU again, but this time by selling back $500, which brought the position size to equal-weight again at $4,000.
Updates to follow.
Selling half of WDC on the break to a new range of lows; will look to buy the other half again in the low $60’s.
Should have taken the $400 gain in CLR, but we were going long, tired of taking the quick gain.
Plus, if we would have taken the gain in CLR so early, where else would we have gone with our cash?
We have more cash than needed, and with interest rates being so low, it makes us no money being on the sidelines (you actually lose money due to inflation).
Western Digital continues to slide, and I welcome the fall, since the position has been reduced to half (we sold yesterday on the break of the $67.00 range).
Will wait until the dust settles in this one (WDC) before adding.
Continental continues to fall below our costs basis, as well (we were previously up 8%). But, we will just let this one go, as we already have a full position in the name.
Looking to add to UPRO (S&P 500, our biggest holding) on any further weakness.