Let’s Catch Up (for July 2014): Saying bye-bye to some favourites


Well, as I told myself I wouldn’t, I’ve fallen behind in my posts – having not written in a few months. So to start off, let’s run down the trades and quick version of why we did what we did.  As a note, I try to keep my Current Holdings page up to date while I procrastinate in writing actual posts.


Sold Facebook 

Facebook (FB) reported 2014 first quarter earnings which continued to paint a rosy picture for the company as all metrics continued to show growth from the previous quarter – DAUs (daily active users), Mobile DAUs, MAUs (monthly active users) and over 1B Mobile MAUs.  Mobile also accounted for nearly 60% of the $2.27B in ad revenue the company received during the quarter continuing to prove critics wrong.  So why sell?  Well, I was first surprised that the market did not reward the company on what I thought was a great earnings report (revenue and earnings growth rates continue to move upwards).   Perhaps the acquisitions of WhatsApp and Oculus Rift left investors scratching their heads a little as to where CEO Mark Zuckerberg thinks the company is headed.  This author basically got a little nervous that even with the great earnings, investors did not seem to be impressed – making me believe Facebook must truly provide blow-out numbers to make significant moves up from here.


Sold Chart Industries

Haven’t really written much about Chart Industries (GTLS).  I came across it as a play on liquid natural gas – something that has started to gain some traction as countries outside of North America look for cheaper and cleaner fuel.  However, ever since I’ve purchased the stock, the company’s revenues have failed to impress and the stock price had fallen enough to trigger the maximum loss I was prepared to stomach (20%).   Looks like I might have sold a little too soon as the company got a bump from a just announced a potential $35M agreement with a Chinese company.


Sold Tesla

Yup, you heard right – after pumping Tesla Motors (TSLA) for just over a year and a bit, yours truly has decided to follow my gut which says take the profit and run.  My last post for the Tesla was just before the company’s 2013 year end results where I questioned whether the stock was experiencing a short squeeze or investor irrational exuberance.

The company’s year-end results were great but I just felt like the stock had run up way too much and the execution risk of the company too great to keep holding on.  I still believe strongly in the company (as a subsequent post will explain why) – but felt that there were investments that could provide better return going forward with less risk.  I will guarantee though, that I will become a Tesla shareholder again in the future.


Sold (Short) Russell 2000

There’s an investment saying that says “Sell In May and Go Away” – there are many of these patterns that have developed over time:

Anyways, typically I don’t believe in a lot of these theories, but after last year’s spectacular 30%+ return in US equities, if there was going to be correction, the time from May-October would be that time (ok, so maybe this author believes  the theory to some degree).  This also provided a great time to take  my first crack at hedging my portfolio – which I will explain in a later post as why I picked the Russell 2000 (IWM).

After all, this is a learning process  – I’ve always had an interest in learning and trying out investment strategies.  While it may be dangerously playing with real money, you can only really learn from your experience and decide if these strategies work well for you as an investor.


Bought Carter’s Inc.

Anyone who is a parent will attest to how many clothes a child goes through – especially in their early infant years.  As my son goes through his first birthday, he seems to be outgrowing his outfits every two weeks!  It’s why Carter’s Inc. (CRI) seems like a fitting investment for my wife’s account.  We bought shares in of Michael Kors (KORS) after noticing MK as the brand of choice for being fashionable and affordable.  In a similar manner, when shopping for our little guy’s clothes, Carter’s (which includes Osh Kosh) is our preferred  brand for quality at a decent price point.

The baby clothing space seems quite fragmented with many niche brands and Carter’s really being the most dominant brand – not only with its own stores, but also with a presence in big retailers Walmart and Target.  My wife and I, who are avid cross-border outlet shoppers, also like the fact that the company has started store expansion outside of the United States, setting up stores in Canada and as of last week, allowed us Canadians to purchase products online.  These new channels should contribute to the company’s revenue growth, and maybe allow these shareholders to buy one or two more onesies.


So, those are the updates I have since my last post (sometime in February?!).  We’ll try to be a little more diligent with the writing.

Disclaimer: The author owns shares of CRI.  A full list of holdings can be found here.


2 thoughts on “Let’s Catch Up (for July 2014): Saying bye-bye to some favourites

  1. Pingback: Portfolio Year In Review – 2014 | Fearless Cal's Investment Journal

  2. Pingback: Portfolio Update – February 2017 (+9.2%, Currency +1.9%) | Fearless Cal's Investment Journal

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