New Heights Reached Yet Again, by Brian Nelson, CFA
We simply couldn’t wait to share all the good news with you in our weekly recap email (click here) today, so our intro article has been shortened. Our Best Ideas portfolio (see page 8) continues to reach new heights, but we think it is prudent to point out the size of our cash balance (nearly 30% of the portfolio). The Dow Jones is now roughly 200 points from its all-time high, and we’re expecting a near-term market pullback in the coming weeks. The threats of automatic government spending cuts (sequester) set to begin March 1 (and Congressional bickering), the ongoing convergence of S&P 500 firms’ current forward P/E ratio (13.4) to their 10-year average (14.2), and the significant recent stock-market price advance suggest that a breather may be in order. We’re not sweating it though. We’ll be looking to add to the existing positions in our portfolio and scoop up a number of gems that may get unfairly beaten down. The steady advance of the markets has been all too calm as of late, and investors should anticipate volatility to resume. Stay tuned and expect a number of email transaction alerts from us in the coming weeks!
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INSIDE THIS ISSUE
1 New Heights Reached Yet Again!
1 Company Spotlight: Regal Entertainment (ticker: RGC)
2 Best Ideas Portfolio Holding Google Rebounds with a Strong Fourth Quarter (ticker: GOOG)
3 Best Ideas Portfolio Holding eBay Flashed a VBI of 10 and Has Never Looked Back (ticker: EBAY)
5 Nothing Can Stop Best Ideas Portfolio Holding Altria (ticker: MO)
6 Boeing’s Fourth Quarter Supports Our Thesis on Aerospace (ticker: BA)
7 January Auto Sales Roundup (see article for tickers)
8 Our Best Ideas Portfolio
10 Higher Wing Prices Hurt Earnings Expansion at Buffalo Wild Wings (ticker: BWLD)
11 Best Idea Portfolio Holding Visa Is Off to a Fantastic Start in 2013 (see article for tickers)
13 Could the FCC Hurt Carriers’ Profits? (see article for tickers)
14 We Like Astronics’ Commercial Aerospace Exposure (ticker: ATRO)
15 Other Ideas for Your Radar
17 Featured Reports: Tesoro (TSO), Altria (MO), Microsoft (MSFT)
20 Our Stock-Selection Methodology