Friday, November 13, 2015

Portfolio Adds

I apologize for the brevity of this post and lack of activity the last week as I've been busy.  Today I added to HAIN, RAI, MO, WAB, and MKC.  I'll have a bit more detail in another post and I'll make sure to update the spreadsheet over the next couple days. I'll usually update any adds that are made during the day on twitter. You can follow me via LngHaulInvestor.  


**Update** 11/15/15

Here is why I added to each of the positions. 

HAIN - After the company reported earnings on November 5th the stock has been hitting new lows for the year. The stock last traded close to this price in August 2014 so it's sitting near support in the $40 area. It's oversold on the weekly and daily charts which generally means the stock is likely at a near term bottom. I incorporate technical analysis into my purchase decisions and I always prefer to buy a stock when its been down rather than up. I listed to the conference call and management cited some growing competition, and a slowdown in the natural business at grocery stores(meaning slower sales growth). While I think the company is no longer going to experience heady 20% plus revenue growth as it was in prior years consumers are still gravitating toward healthier brands. While it is entirely possible for the stock to head lower I think this represents a good entry point for those with a long term view(or forever if possible). If the stock gets even cheaper I'll consider adding more at that time. 

MO - No change in the business at all here. The stock has simply revisited it's 50 day SMA line and I thought it would be a good time to add after the recent run up. 

MKC - Pretty simple here too. The stock is trading around it's 50 day SMA so I decided to make an add. The stock has held up very well through the volatility of the last few months. A sign of a truly great stock. MKC doesn't always offer up opportunities to buy shares at a substantial discount so I take what it gives me.

RAI - Similar to MO as the stock trades near it's 50 day. I personally expect RAI to perform a bit better than the other tobacco holdings this year. Then again so do a lot of people after the Lorillard acquisition.

WAB - This one has been a heart breaker. WAB has been one of the best stocks the last decade. While there is nothing wrong with the company I think the march down is representative of the slowing global economy. Thus less freight train movement. The stock is at oversold levels on the daily and weekly charts thus making it a good opportunity for an add in my opinion.

For anyone new to technical analysis you can go to www.stockcharts.com to use their free charts. They offer a very simple layout that lets you customize certain aspects. While not the best overall, it's a great start for beginners. I still use it myself to check charts periodically. It will give you a basic idea of when a stock is at overbought/oversold levels.

That's it for now. I'm on the lookout for making some completely new additions to the portfolio. Just waiting for the right price at this point.

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