Goldman Sachs Gold
The Stay Invested portfolio was UP today: $308.93 (+0.29%)
Overall GAIN/LOSS YTD: +$2,892.39 (+2.82%)
Our benchmark index, the S&P 500 is UP Year-To-Date +5.15%
"In investing, what is comfortable is rarely profitable."
― Robert Arnott
Nothing to Buy
The rally in the market continues and there is still nothing in the bull pen to buy. This is the main problem with buying in tranches, sometimes you miss out on upside, but you almost always protect your capital; because its not working. I'll just keep looking, but will look outside the bull pen for new ideas.
Left for dead with the rest of the banking sector Goldman got overly punished and became an extreme value stock. The portfolio has had a nice boost from the performance of Goldman Sachs; I was so impressed with how cheap Goldman was that I took a full position and it's paid off. With an initial buy at $169.51 the stock is now trading just under $200 giving us a +15.73% gain YTD. I have a 12 month price target of $226. Goldman Sachs is an investment bank that is now going down stream to retail customers with a lending business. Due to an international scandal known as 1MDB, Goldman has been discounted way below its book value of $197, at one point the stock was around $150. Once the 1MDB scandal is behind them this stock can soar to an appropriate valuation while it kicks out a 1.82% dividend. If there is another opportunity to buy goldman cheap I'll purchase an overweight position. I personally own GS.
I love this company and for disclosure I own it personally. Veeva is a software company that until recently specialized in software solutions for Life Sciences companies. Veeva's industry cloud solutions provide data, software, services and an extensive ecosystem of partners to support the most critical functions from R&D through commercial. Veeva helps companies of all sizes bring products to market faster and more efficiently, and maintain compliance. Veeva expanded last year to include other industries and now has a complete portfolio of solutions for Content Management, Customer Relationship Management, Customer Reference Data, Master Data Management and Commercial Data Warehouse applications. Basically if you have a business that needs to stay compliant with data management and make all your communications and data management for efficient, Veeva is your solution.
Who uses Veeva, lots of names we all know, but check out the common industries with complex data management problems. Glaxo-Smith Klein, Bayer, AstraZeneca, Biogen, Teva, Eli Lilly, Merck, Nestle, Novartis, Shire and many more.
What I like about Veeva is their subscription business model. Clients sign up for a solution and pay a monthly or annual subscription based on products selected and number of users. Veeva knows with great certainty what revenues will be, and revenues are recurring. When a customer uses Veeva's products they not only make their own business more efficient, they jump into the moat that protects Veeva's business. Once a large company has invested in Veeva, switching to another vendor would be a major expense of time and money; so Veeva's customers are committed. Our YTD gain is +18.24%. Veeva closed today at $103.45, I have a 12 month price target of $112.
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Keep Me Honest
S&P 500 declines to 2,350 or more (1-3-2019)
Healthcare and Biotech sectors outperform (1-3-2019)
S&P reaches 3,000 by year end (1-11-2019)
Disclosure: I am personally invested long in some or all of these stocks or funds that appear in the Stay Invested portfolio and may purchase or sell shares within the next 72 hours. I am also invested in other stocks and funds that do not appear in the Stay Invested portfolio but may be mentioned or related to this article. It is not my intention to advise or encourage the purchase or sale of any security. I am invested long in these securities mentioned in this post:
VEEV, STZ, AMZN, NVDA, BCRX, GS, BDSI, VEEV, VTI, GLD.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.