Portfolio Update – WEEK 21 (May 18th to May 24th)
Good morning,
Hello, how are you all?
Portfolio has 7 weeks in a row in profit! This week rallied +3.68%, TERRIFIC! After the first half of May, the portfolio advanced strongly with the + 10.08% mark. In conclusion, the strategy continues to work surpassing the three main Wall Street indices. My wife and I were confined at home for 73 days. Everyone is making a personal decision about whether and how to venture out after a period of restrictions. There is a balance between the desire to enjoy freedom and the continuing fear of COVID-19. For business owners it is a question of how quickly to reopen and what precautions are necessary. For investors, it will be the first indication of how long the recession might last. Check it out the portfolio stats https://etoro.tw/2SPLA85 .
In case of any doubt, you can access the FAQ of my blog: https://santiago1000.it/en/#faq
(Seeking Alpha) Stocks finished mostly higher Friday heading into the three-day weekend, capping a strong week of gains sparked by optimism over a potential coronavirus vaccine and the reopening of the U.S. economy. Tensions between the U.S. and China continue to bubble up, as the U.S. Commerce Department added two dozen Chinese companies to its entity list limiting access to American technology. But sentiment was helped by Dr. Anthony Fauci, who said he supported an economic reopening. For the week, the Dow gained +3.3% for its best weekly showing since early April 9, and the S&P 500 and Nasdaq also rose more than +3%.
Here is the detailed weekly income of the positions that make up the portfolio:
STOCKS
LULU – Lululemon Athletica Inc. +12.00% (upcoming earnings announce on 06-10-20)
FB – Facebook, Inc. +11.40%
SEDG – SolarEdge Technologies, Inc. +8.26%
SHOP – Shopify Inc. +7.58%
NVDA – NVIDIA Corporation +6.31% (earnings reported 05-21-20)
MA – Mastercard Incorporated +5.73%
AAPL – Apple Inc. +3.63%
PAYC – Paycom Software, Inc. +2.93%
GOOG – Alphabet Inc. +2.71%
TTD – The Trade Desk, Inc. +2.53%
AMD – Advanced Micro Devices, Inc. +1.79%
AMZN – Amazon.com, Inc. +1.12%
MSFT – Microsoft Corporation +0.19%
ENPH – Enphase Energy, Inc. -3.35%
I closed EDU.
Stocks/ETFs on my radar and that interest me: TSLA, NFLX, MELI, ZM, MELI, PYPL and ADBE .
Lululemon is on fire
Lululemon (NASDAQ:LULU) unveiled its store reopening plan. While the store openings over the next few weeks fall along the same general path of the rest of retail, LULU didn’t break down into detail how sales are looking this quarter as did some apparel peers. That’s not necessarily a bad sign as the company did say it remains pleased with the degree to which customers continue to connect with the brand digitally and online. Oppenheimer weighs in on the Lululemon update, saying it still sees the stock as a compelling means for investors to both seek safety and capitalize upon a forthcoming, post coronavirus economic rebound. “In our view, the lululemon brand is decidedly strong and anchored to an increasingly robust technological backbone. LULU products lend well to comfort at home and a more casual, but still sophisticated work culture going forward,” reads the firm’s update. Oppy keeps an Outperform rating on Lululemon. LULU’s balance sheet consists of $1.1B of cash-on-hand, $400M untapped revolver and no long-term debt. I’m bullish.
SolarEdge
SolarEdge’s stock has almost completely rebounded from the initial impact of the coronavirus. SolarEdge continued to grow at a rapid rate in Q1. SolarEdge is establishing itself as a new generation solar powerhouse. The company has firmly established itself in the solar MLPE space and is now expanding into even larger markets like battery storage. Even at its current market capitalization of $6.7 billion, SolarEdge still has more room for upside.
AMD
AMD recently announced its new GPU on the back of its incredibly popular Ryzen line for CPUs. These new GPUs are incredibly powerful and come in at a fraction of Nvidia’s respective price. Of course, they’re not perfect, but for those who want raw computing power, there’s nothing better out there. Strong Buy for me.
Embracing remote work
Mark Zuckerberg announced that Facebook (NASDAQ:FB) would shift permanently toward more remote work as it looks to recover from the COVID-19 pandemic. The outlook marks an expansion of a previous stance that allowed all employees to work from home though 2020 (a move topped by Twitter (NYSE:TWTR), which granted the option indefinitely). Facebook also plans on building three new “hubs” in Atlanta, Dallas and Denver, where remote workers in those areas could occasionally convene to “foster community.”
Zoom – ZM
Collin County District Court selected a jury on Monday to hear an insurance dispute by videoconference, in what is believed to be the first virtual jury trial to be held nationally during the COVID-19 crisis. “You can’t drag people down to the courthouse and make them sit together for days at a time,” Texas Supreme Court Chief Justice Nathan Hecht declared. “It’s just too dangerous.” It’s yet another boon for Zoom (NASDAQ:ZM), which has seen its stock take off since January. In fact, at a market cap of $49B, Zoom is now worth more than every publicly traded U.S. airline – combined.
Weekly Market Movement Wrap
U.S. Indices
Dow +3.3% to 24,465. S&P 500 +3.2% to 2,955. Nasdaq +3.4% to 9,325. Russell 2000 +7.6% to 1,353. CBOE Volatility Index -11.7% to 28.16.
S&P 500 Sectors
Consumer Staples -0.1%. Utilities +1.9%. Financials +4.6%. Telecom +4.%. Healthcare -1.%. Industrials +7.3%. Information Technology +2.9%. Materials +4.2%. Energy +6.8%. Consumer Discretionary +4.4%.
Thanks for reading.
Best regards,
Santiago