Saturday, May 31, 2014

Portfolio Status

Hello Everyone!

It has been a while since I've shared a recap of how my stock portfolio is doing. I will be the first one to admit that the past several months from January-May have been extremely busy for me. However, as pointed out in my prior post, I finally have some time to relax and do the things I love doing more often--- that includes managing my stock portfolio and looking for new companies to add to my repertoire.

I have some time until my new job/internship begins and that means I have been running again in the new found gorgeous NYC weather (another one of my passions) as well as enjoying some morning Television. I must confess that I have been absolutely obsessed with CNBC's "Squack on the street" and was pretty excited when one of the hosts replied to a random tweet I wrote one morning:

...Is the little things in life I tell ya'.

But anyways, still in the process of finding new stocks to add. I have some in mind but still doing some "background" analysis before I take that next step.

So anyways, how are my stocks doing? Considering the current bull market and how great the market has been overall, specially during the past week, I am happy to say that the majority of my positions are doing great. I have one portfolio with TradeKing and the other one with TDAmeritrade (may be looking to consolidate soon). But here you have a quick snapshot:

Symbol Description Avg Price Current Price Dividend Yield
CL Colgate Palmolive Company $59.19 $68.40 2.20% (1.44)
COH Coach Inc $74.01 $40.71 3.30% (1.35)
GOOG Google Inc $229.01 $559.89 n/a
GOOGL Google Inc $229.65 $571.65 n/a
JNJ Johnson & Johnson $82.85 $101.46 2.80% (2.80)
KO Coca Cola Company $27.95 $40.91 3.00% (1.22)
NWY New York & Co Inc $3.30 $3.96 n/a
V Visa Inc $143.35 $214.83 .80% (1.60)
Symbol Description Avg Price Current Price Dividend Yield
DIS Disney 73.96 84.01 1% (.86)
NKE Nike 75.91 76.91 1.30% (.96)
VZ Verizon 51.22 49.96 4.30% (2.12)
COH Coach Inc 73.54 40.71 3.30% (1.35)

You may notice there is one lagging stock in my portfolio which has been lagging for quite some time. Take a quick look above and you'll be able to identify what I am talking about. 

Most of my prior posts emphasize how much faith I have in the company as a whole and it is true that it still remains profitable with a lot of cash. However, the consistent decrease in North American sales for the past several quarters and increasing competition from companies like Michael Kors have hurt the stock price tremendously. Sales, however, have been increasing outside the U.S; specially in China and the company is currently going through a transition of becoming more of a "lifestyle brand" as oppose to simply a luxury brand; as well as branching out in to products targeted to the male population. 

In my honest opinion as an individual investor I still remain firm on the believe that it is a great company. However, I feel that competition is fierce and  it will take some time before the company is able to get through the "growing pains" of transition and emerge back in to healthy and profitable quarters in North America. The issue is-- how long will this take exactly? they have amazing management and are working hard behind the scenes to turn back the company but only time will tell. 

I also feel that the theory of an "hourglass" economy may also be affecting sales in North America. In simple terms---an hour glass economy refers to the idea that the "bottom" consumers---those who only buy things on sale and are constantly looking for cheaper deals, is expanding. On the other end of the spectrum-- those individual whom only buy extravagantly expensive luxury brands is also expanding, leaving the "middle" with less consumers and perhaps this is why Michael Kors sales margins were also recently affected during the past quarter. This is just a theory. 

Aside from this, I think the main issue is without a doubt competition. If COH is able to be strategic about their turn around and fight back the brands that are eating up market share, I believe a positive turn around in its N.A sales and its stock price is in fact in its future. However, time will be the best determinant of this conclusion and in the meantime, I will continue to watch my stocks like a hawk and do what I need to do when the time comes. 

Thank you for reading!

Feel free to share:

1. What stocks are on your current watch list?
2. What stock is currently "lagging" in your portfolio?

As always...wishing you LOTS of profits,