How to Screen Your Investments

How to Screen Your Investments

FREE SPECIAL REPORT

pto logoAt Wall St. Renegade, we help you find investments you can be “proud to own”.  We do this using a three step process:

1. Avoid companies that violate your faith and values. Some of the types of companies we can avoid include those involved in the abortion industry, those producing explicit entertainment and pornography, those conducting embryonic stem cell and fetal tissue research, companies funding and lobbying for homosexuality, those involved in vices like alcohol, tobacco and gambling and companies that are abusing the environment.

2. Seek out those companies that complement your faith and values. This involves finding companies: Helping the poor and defenseless; Protecting the sanctity of human life; Producing morally sound entertainment; Finding cures for life threatening diseases; and Improving the society we live in…

3. Seek companies with strong profit potential. This involves finding companies in solid financial condition that have strong profit potential and/or provide strong cash flows via dividends. We use a five-point inspection to evaluate each investment we are considering. We analyze a company’s earnings potential, price momentum, risk, financial health, and its current valuation. Our goal is to find quality companies that stay true to your values AND are profitable! This is not an either /or scenario but rather a winning combination.

Download THE FREE SPECIAL REPORT by clicking Below:

How to Screen Your Investments 2015

 

Get Access to Our Premium Research for just $20/month!

 

Each Month You Gain Access to:

  • 7 Faith-Based Investment Portfolio Strategies
  • Premium articles on retirement, insurance, investing, estate planning, taxes, and much more from a Christian perspective
  • My monthly buy list of top rated investment ideas
  • Trade alerts as I buy and sell positions
  • Commentary and articles to help you navigate today’s challenging environment
  • My monthly cheat sheet: top sectors, stocks, countries, commodities, and currencies to consider
  • Market indicator: helps you know when danger is coming. We track 12 key indicators and monitor both short-term and long-term trends. 

LEARN MORE

 

 

Trading Blog Archive(March)

[private]

March 31st 2014 14:27PM

The market is still up but all 3 indexes have stalled out. This could mean we will consolidate for a while before the next move up. We could also see a top coming in, but no evidence to support it quite yet. We will hold GS for now, but make sure to adjust your stop to lock in any profits you have now. The market could sell off at any time so we don’t want a winning trade to become a losing trade.

 

March 31st 2014 10:02AM

The markets are up sharply this morning after tensions settled over Ukraine and Russia, and Yellens promise to add more liquidity if it is needed. Our GS trade is also up today, and we will hold it until I see a reason to sell. I am also going to look for other plays, maybe a covered call.

 

Electric Cars Taking Over the World?

Electric Cars Taking Over the World?

If you want to get in on the ground floor of the next major investment trend, look for industries that involve technologies that are rising in tandem. In the 19th century, that combination would’ve been steam power and railroads. More recently, computers and the Internet. But we have just such a trend developing right now, with the combination of renewable energy and electric cars in an energy starved world.

Ten years ago, neither industry was given much credibility. But improving technology for both renewable energy and electric cars – in combination with rising oil prices – is setting the stage for what might be the next tidal wave on Wall Street. If you haven’t considered the possibility of investing in the electric car market, now is an excellent time to get in.

The current state of the electric car industry

On the automobile evolutionary scale, electric cars are roughly where cars powered by internal combustion engines were in the days before the First World War – only a few thousand vehicles are on the road, but the number is growing exponentially.

According to the Electric Drive Transportation Association, or EDTA, sales of electric cars have been rising sharply in the US for the past five years:

  • 2009 – NO vehicles sold
  • 2010 – 19 vehicles sold
  • 2011 – 10,064 vehicles sold
  • 2012 – 52,835 vehicles sold
  • 2013 – 96,702 vehicles sold

The 96,702 electric cars sold in 2013 represents less than one percent of the total of more than 15.5 million cars and trucks sold in the US that year. But it also demonstrates the tremendous growth potential of the electric car industry as it increases its market share in the coming years. Capturing just 10% of the overall market would increase electric car sales to over 1.5 million vehicles, which is the size of the entire auto industry in the United Kingdom. Analysts are predicting just such an outcome in the not too distant future.

Why the future of electric cars is so bright

It’s not hard to see why electric car sales are suddenly taking off. Part of it is improvements in the technology, but most of it has to do with big picture shifts that are not likely to reverse anytime soon – if ever.

The easy oil is all gone. Have you noticed that virtually all of the new oil coming online is coming from difficult sources? Tar sands, “fracking”, heavy oil, offshore, and in places like Siberia and the polar caps. The easy oil from convenient locations is gone, which virtually guarantees that gasoline prices will go higher, no matter what’s happening with the economy.

Renewable energy is growing, and it’s mostly for electricity. The best energy hope right now is in solar and wind power – both of which focus primarily on generation of electric power. Renewables are finally coming into their own, and guarantee a growing supply of electric power.

Environmental concerns. Increasing awareness of environmental damage being done by gas-fired cars is at least partially responsible for the increase in all-electric vehicles. An electric car is a clean running vehicle, and now that renewable energy sources are growing, the electricity that’s used to power them is also becoming increasingly clean.

Battery lives are improving. The biggest drawback to electric vehicles until recently has been short battery lives. This has put a severe limit on the distance that you can drive an electric car. But battery technology has been steadily improving. The Nissan Leaf, the most popular electric car model, typically gets 75 miles on a charge. That’s plenty for most people for commuting and local driving. The Tesla Model S (85kWh Version) has been rated at up to 300 miles at 55 miles per hour. As ranges for electric cars continue to increase, they become more competitive with gas powered cars.

image

How to play the electric car boom

Obviously the best way to play the electric car boom is to jump on the bandwagon and buy one of your own. But if you’re also hoping to make money on the trend, you can look into buying the stocks of companies that are designing and manufacturing electric cars. At this point however, that’s not as clear a play as it seems.

For example, the Nissan Leaf is the biggest selling electric car in the world. However it represents only a tiny percentage of Nissan’s overall business. It’ll be virtually impossible to specifically play the electric car market by buying stock in Nissan. The same is true of General Motors, with its top-selling electric vehicle, the Chevy Volt.

The most specific way to profit from the rising trend in electric car sales is by investing in the stock of companies that are engaged specifically or primarily in the electric car industry.

A Look at Tesla Motors Innovation

Tesla Motors is probably the single best play on the electric car market trend. The name Tesla itself has become It is the car company that is most closely associated with the electric car industry. Consider the following:

Tesla is a pure plan on the electric car market. Other companies participate in the electric car market. Tesla is an electric car company. It designs, manufactures and sells not only electric cars, but also electric vehicle power train components.

A supplier to the rest of the electric car industry. Tesla supplies electric power train components (including lithium-ion battery packs) to other manufacturers of electric cars, including global giants Diamler (owner of Mercedes-Benz and Smart) and Toyota. That means that Tesla controls the most significant electric car technology.

Tesla is a stand-alone company. Tesla isn’t someone’s subsidiary. It’s virtually a novelty in the automobile industry in that it’s both small and independent. That gives it the kind of managerial independence and flexibility that’s virtually unknown in the auto industry.

Tesla is on the cutting edge of electric car innovation. Earlier I noted that the Nissan Leaf – the world’s most popular electric car – gets 75 miles on a single charge. I also noted that the Tesla Model S (85kWh Version) can go up to 300 on a single charge, and do it at 55 miles per hour. That’s where Tesla is at technologically compared to the competition. Tesla is setting the industry standard.

Marketing Pay Dirt: The Tesla name is synonymous with electric cars . Companies spend millions – sometimes billions – of dollars trying to create that kind of market recognition through global advertising campaigns. Look at all the money Coca-Cola and McDonalds have spent to dominate the soft drink and fast food industries. Tesla has already done that in the electric car market.

Bottom Line: Tesla Motors (TSLA) is a long-term holding in our Contrarian Strategies Portfolio. You can also gain access to stocks like Tesla via our VIP Program.  Tesla was first recommended at $37 per share back on 3/6/13.  We have since upped our price target to $300 per share. This is one of our “proud to own” companies.  Tesla Motors, Inc. designs, manufactures, and sells electric vehicles and electric vehicle powertrain components.

2014 Set and Forget Portfolio

2014 Set and Forget Portfolio

[private]

Set&Forget

THE “SET & FORGET PORTFOLIO” FOR 2014

By Jay Peroni, CFP®

Chief Investment Officer

www.faithbasedinvestor.com

www.wallstrenegade.com

 

Many Investors want a powerful portfolio for the year ahead. I find that 20 stocks is a magic number! In fact, most of our portfolios at www.faitbasedinvestor.com have 20 stocks (allocating 5% to each company).  In 2013, I started a “set it and forget it” portfolio with my best ideas for the year ahead.

 

Here is how the portfolio performed in 2013:

Company Symbol

Results

S&P 500

+/- Market

Addus Homecare ADUS

233.66%

31.8%

201.86%

Biogen Idec Inc BIIB

91.01%

31.8%

59.21%

Middleby Corp. MIDD

88.96%

31.8%

57.16%

Celcom Israel CEL

68.43%

31.8%

36.63%

AVG Technologies AVG

7.52%

31.8%

-24.28%

EQT Midstream EQM

92.81%

31.8%

61.01%

Six Flags SIX

25.46%

31.8%

-6.34%

Lumber Liquidators LL

92.75%

31.8%

60.95%

Hanesbrands HBI

95.98%

31.8%

64.18%

Cracker Barrel CBRL

75.38%

31.8%

43.58%

Cabela’s, Inc CAB

59.31%

31.8%

27.51%

Omega Health Inv. OHI

34.17%

31.8%

2.37%

AMERISAFE, Inc AMSF

56.29%

31.8%

24.49%

Arch Capital Group ACGL

34.12%

31.8%

2.32%

Eagle Materials EXP

31.93%

31.8%

0.13%

American St. Water AWR

23.43%

31.8%

-8.37%

Green Mtn Coffee GMCR

82.46%

31.8%

50.66%

SodaStream Intl SODA

9.49%

31.8%

-22.31%

Flowers Foods, Inc FLO

41.66%

31.8%

9.86%

B&G Foods Inc BGS

24.34%

31.8%

-7.46%

Set & Forget Port.

+63.46%

31.8%

+31.66%

In 2013, the Set & Forget Portfolio beat the S&P 500 2 to 1!

Here is my 2014 “Set and Forget” Portfolio

5% Allocated to each company:

Country Company Symbol Sector
Israel CAESAR STONE SD CSTE Basic Materials
United States WD-40 COMPANY WDFC Consumer Cyclical
United States CONN’S INC CONN Consumer Cyclical
United States NU SKIN ENTERP NUS Consumer Defensive
United States CAL-MAINE FOODS CALM Consumer Defensive
United States MAGELLAN MDSTRM MMP Energy
United States WESTERN GAS PTR WES Energy
Russia QIWI PLC QIWI Financial
United States AMERISAFE INC AMSF Financial
Switzerland ACE LIMITED ACE Financial
United States MWI VET. MWIV Healthcare
United Kingdom SHIRE PLC-ADR SHPG Healthcare
United States NPSP PHARM. NPSP Healthcare
Ireland JAZZ PHARM. JAZZ Healthcare
United States MIDDLEBY CORP MIDD Industrials
United States ALLIANCE DATA ADS Industrials
China SOUFUN HLDG-ADR SFUN Technology
United States 3D SYSTEMS DDD Technology
United States UBIQUITI NETWRK UBNT Technology
United States MICROCHIP TECH MCHP Technology

 

View Portfolio

Here is the breakdown:

Global Allocation: 30% Foreign, 70% U.S. 

Market Capitalization: 30% Large Cap, 40% Mid Cap, 30% Small Cap 

Sector Allocation:  5% Basic Materials, 10% Consumer Cyclical, 10% Consumer Defensive, 10% Energy, 15% Financial, 20% Healthcare, 10% Industrials, 20% Technology

Dividend Allocation: 65% pay a dividend, 35% do not pay a dividend

Sector Allocation (AS OF 12-31-13): (Bold are my 2 favorite sectors)

Sector

S&P500

Set & Forget Portfolio
Basic Materials

3%

5% (+2% overweight)
Consumer Cyclical

12%

10% (-2% underweight)
Consumer Defensive

10%

10% (+5% overweight)
Energy

10%

10% (equal weight)
Financial Services

15%

15% (equal weight)
Health Care

12%

20% (+8% overweight)
Industrials

12%

10% (-2% underweight)
Real Estate

3%

0% (-3% overweight)
Technology

16%

20% (+4% overweight)
Telecom

4%

0% (-4% underweight)
Utilities

3%

0% (-3% underweight)

 

Consumer Defensive

Companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education & training services. In this sector, Faith-Based Investor screens out companies involved in the production of alcohol and tobacco.

NU SKIN ENTERPRISES (NYSE: NUS)

Nu Skin Enterprises, Inc, is a direct selling company, which develops and distributes personal care products and nutritional supplements that are sold under the Nu Skin and Pharmanex brands.

CAL-MAINE FOODS (NASDAQ: CALM)

Cal-Maine Foods, Inc. is a producer and marketer of shell eggs in the United States. Its main business is the production, grading, packaging, marketing and distribution of shell eggs.

Health Care

This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term care facilities, and medical equipment and supplies. In this sector, Faith-Based Investor screens out companies involved in the abortion industry, embryonic stem cell/ fetal tissue research, and cloning.

JAZZ PHARMACEUTICALS (NASDAQ: JAZZ)

Jazz Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on identifying, developing and commercializing innovative products to meet unmet medical needs in neurology and psychiatry.

SHIRE PLC (NASDAQ: SHPG)

Shire plc, a specialty biopharmaceutical company, engages in the research and development, manufacture, sale, and distribution of pharmaceutical products. It operates in three segments: Specialty Pharmaceuticals, Human Genetic Therapies, and Regenerative Medicine.

MWI VETERINARY (NASDAQ: MWIV)

MWI Veterinary Supply is an animal health products distributor. The products include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, supplies, veterinary pet food and nutritional products. The company sources products from more than 350 vendors and markets its products to the companion animal and production animal veterinarians.

NPS PHARMACEUTICALS (NPSP)

NPS Pharmaceuticals Inc. is engaged in the development of new treatment options for patients with rare gastrointestinal and endocrine disorders and serious unmet medical needs.

Basic Materials

This sector includes companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing.

CAESARSTONE (NASDAQ: CSTE)

Caesarstone Sdot-Yam Ltd. manufactures engineered quartz surfaces. The company’s products are used in both residential and commercial buildings as countertops, vanities, wall cladding, floors, and other interior surfaces. 

Consumer Cyclical

This sector includes retail stores, auto and auto parts manufacturers; companies engaged in residential construction, lodging facilities, restaurants and entertainment companies.

CONN’S INC. (NASDAQ: CONN)

Conn’s, Inc., is a specialty retailer of durable consumer products. It also provides consumer credit to support its customers’ purchases of the products that it offers.

WD-40 COMPANY (NASDAQ: WDFC)

WD-40 Company sells WD-40®, a multi-purpose maintenance product which acts as a lubricant, rust preventative, penetrant, cleaner and moisture displacer.

Financial Services

Companies that provide financial services which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies.

ACE LTD. (NYSE: ACE)

ACE Ltd is a Swiss-incorporated holding company and, is an insurance and reinsurance organization. It serves the property and casualty insurance needs of businesses of all sizes.

AMERISAFE INC. (NASDAQ: AMSF)

Amerisafe Inc., is a specialty provider of workers’ compensation insurance focused on small to mid-sized employers engaged in hazardous industries, principally construction, trucking and agriculture.

QIWI PLC (NASDAQ: QIWI)

QIWI PLC, along with its subsidiaries, provides payment services in Russia and the CIS. The Company, through an integrated proprietary network, provides payment services across physical, online and mobile channels.

Energy

Companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal.

MAGELLAN MIDSTREAM (NYSE: MMP)

Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of petroleum products in the United States. The company’s petroleum pipeline system transports petroleum products, such as gasoline, diesel and aviation fuel, heating oil, crude oil, and liquefied petroleum gas for independent and integrated oil companies, wholesalers, retailers, railroads, airlines, and regional farm cooperatives.

WESTERN GAS (NYSE: WES)

Western Gas Partners, LP owns, operates, acquires, and develops midstream energy assets in east, west, and south Texas; the Rocky Mountains; and the Mid-Continent. The company engages in gathering, compressing, processing, treating, and transporting natural gas, condensate, natural gas liquids (NGL), and crude oil.

Industrials

These are companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms as well as companied engaged in transportations and logistic services.

ALLIANCE DATA SYSTEMS (ADS)

Alliance Data Systems Corporation is a provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based businesses in a variety of industries. 

MIDDLEBY CORPORATION (NASDAQ: MIDD)

The Middleby Corporation, through its subsidiaries, engages in the design, manufacture, marketing, distribution, and service of commercial foodservice and food processing equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America.

Technology

Companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services. Also includes companies engaged in the manufacturing of computer equipment, data storage products, networking products, semiconductors, and components.

3D SYSTEMS (NYSE: DDD) 

3D Systems develops and manufactures technology that produces three-dimensional objects from computer-aided design- and manufacturing-generated solid or surface data. This process is often referred to as solid imaging. The company’s 3D technology produces models, prototypes, and mold patterns using data supplied by its customers on a contract basis. Customers include manufacturers of automotive, aerospace, computer, electronic, medical, and consumer products in more than 80 countries. 

MICROCHIP TECHNOLOGY (NASDAQ: MCHP)

Microchip Technology Incorporated engages in the development, manufacture, and sale of semiconductor products for embedded control applications.

SOUFUN HOLDINGS (NASDAQ: SFUN)

SouFun Holdings Limited operates a real estate Internet portal in the People’s Republic of China. It offers marketing services primarily through advertisements on its soufun.com Website to real estate developers in the marketing phase of new property developments, as well as to real estate agencies and other home furnishing and improvement vendors who wish to promote their products and services, including home furnishing and improvement products and services, furniture, electronics, and other products.

UBIQUITI NETWORKS (NASDAQ: UBNT)

Ubiquiti Networks, Inc., a communications technology company, together with its subsidiaries, offers a portfolio of communications networking products and solutions worldwide. Its solutions include systems, radios, antennas, and management tools that are designed to deliver performance for networking and other applications in the unlicensed RF spectrum.

[/private]