Penn Wealth Publishing

2018.11.18 Penn Wealth Report Vol 6 Issue 05

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16 PeNN Wealth Report volume 6 issue 05 18 Nov 2018 Penn Wealth Report Copyright 2018. All Rights Reserved. investment intelligence Actions we have taken at the Penn Trading Desk, plus a look at what other Wall Street analysts have to say... Trading Desk After a head-fake of a recovery over a two-week period, the mar- kets turned south once again. Even stalwart bulls are being shaken by the intra-day volatility. We used this period to pick up some great companies at a deep discount. Penn: Add to AAPL Position At Penn, the theme for October was stop- loss orders. Placing them, adjusting them, expanding their scope. Clients have built up enormous gains within their investment accounts, and we are intent on protecting those gains. It may seem a bit ironic, but at the same time we are focusing on stops, we are also adding to a beaten-down position in the Penn Global Leaders Club: Apple (AAPL $150-$177-$233). For reasons we mention in this issue of the Report, analysts and investors are misreading the tea leaves. We added to our position at $176.65/share. Penn: URi Position stoPPed-oUt It's never enjoyable to take a loss on a posi- tion, but cutting losses is a key component to a responsible, effective, proactive invest- ment program. We believed in United Rentals (URI $106-$120-$191) when we added it to the Intrepid Trading Platform, and we still do; however, it hit our prede- termined stop on the way down and sold at $119.90. Analytics, not emotions. Penn: Add BiKR to dGs We are not thrilled with the current state of most emerging market economies around the world, and we are equally dour on the state of developed Europe. Just to throw one more international metric into the mix, the pace of Chinese economic growth is slow- ing. All that being said, we still need to be invested overseas to maintain our recom- mended portfolio allocations. at is why we added a dynamic (fitting) new ETF to the Dynamic Growth Strategy. e Rogers AI Global Macro ETF (BIKR $23-$24- $31) is based on the trading strategy of legendary global investor Jim Rogers (who is known for actually touring remote parts of the world on one of his BMW motorcycles, hence the ticker). An artificial intelligence (AI) overlay is then used within the fund to spit out the top twenty or so countries with the best growth potential going for- ward. e fund then buys a basket of these country-centric ETFs. NGE, the Global X MSCI Nigeria ETF is a great example of a top holding right now. is is truly a fascinating concept, backed up by the expe- rience of one of our favorite international investment gurus (probably just behind Sir John Templeton, who is no longer with us). We added BIKR as a core holding within the DGS. Penn: Added eiX to itP ere are three critical aspects to being a good portfolio manager: experience, analytical abilities, and monitoring the environment like a hawk. When investors left Edison International, parent company of Southern California Edison, in droves following Camp Fire, we swooped in and bought this regulated utility (with a 5% dividend) at a steep discount to fair value. Because of the litigation concerns stemming from Camp Fire, we added to the Intrepid instead of the Strategic Income Portfolio. Penn: Added FB to itP Somewhat ironically, we used Facebook (FB $135-$135-$219) as an example in our stop-loss article. Now, in the same issue, we discuss adding it to the Intrepid Trading Platform. But we didn't own FB as it gapped down. Furthermore, even if we had, there is nothing wrong with adding an equity which recently stopped-out if the share price is, in our opinion, undervalued. At $135.05/ share, FB has an RSI of under 30, and a PE ratio near 20. Plus, the company had a net income of $16 billion last year on revenues of $40 billion—an impressive margin. Sure, the company's negative headlines have hurt the share price, but that is the point: it is undervalued. We added FB to the ITP at $135.05 per share with a stop-loss @ $110. e content of this report reflects the personal views, opinions, and research of Penn Wealth Publishing. While measures are taken to help assure the accuracy of data, no guarantees can be made and the firm is not liable for any losses incurred by subscribers. is is not a solicitation to buy. Always con- sult your investment professional before investing any money.

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