Friday, March 31, 2017

TLH Market Review -3/31/17

There was some big stock news this week. For one Apple(AAPL) hit a market cap value of $750 billion.  Then portfolio member Facebook(FB) announced it's next full out assault on Snap Inc(SNAP) with the addition of its stories feature within it's Newsfeed on Mobile and Desktop. That's on top of it being accessed via it's Messenger & Instagram apps, and it was recently added to WhatsApp.

In other portfolio news we received word that Danone and WhiteWave have gotten some approvals from the DOJ this week.  The stock quickly shot up close to the buyout price of $56.25/share. It was interesting to see shares trade around $54.50 just last week.  Originally the company said the merger would be done by this month. I still think there's another 3-6 weeks until investors see shares being replaced with cash in their broker accounts.

Also we received earnings from McCormick(MKC).  The company posted another steady quarter as it does in my opinion a great job managing currency fluctuations, and costs. For Q1'17 EPS came in at $0.74 on revenues of $1.043 billion.  A bright spot was operating earnings were up 3.8% to $134 million despite weaker EPS and top-line growth.  Yet that hasn't stopped the shares from reeling this week. 

In economic news  we received the third estimate for Q4 GDP. The market gave a collective yawn at this one per usual.  It's frankly old news.  At this point in time investors are gearing up for Q1 earnings so GDP isn't forefront unless it's Q1 2017 GDP. There was some talk that the job market is getting soft with Initial Claims coming in at 258k.  That's some short term thinking right there. The number has been lower for a record amount of time.  Yes the job market is not robust like it was in previous recoveries, but it doesn't seem to be anything to fret about yet. Once it starts climbing fast then we can pay attention. 

I'll be getting Q1 results for the portfolio going this weekend as I'll need to be the S&P's 5%+ return. I'm going to be working on some calculation changes going forward as I refine my reporting.  Stay tuned. I never updated the portfolio page with 2016 results and I apologize, although you can check out the portfolio results in the google sheet. 

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