Buying Today - EW & FOXF
“What we learn from history is that people don't learn from history. When investors get either too fearful or too greedy, they sometimes hide behind the notion that "This time it's different."
Usually they regret it.
- Warren Buffett
The Portfolio
Our blog portfolio continues to perform well and volatility in the portfolio remains low vs the overall market. Year-To-Date the portfolio is up +22.70%. Our benchmark index, the S&P 500 is up 19.44% YTD. Not only are we still beating the broad market, we're starting to diverge from the S&P at a faster pace.
If you're an investor looking for diversification and growth, and you'd like to know more about the way I build a portfolio; please feel free to email me. clay@claybaker.com
Buying Today
Two companies I've always liked got attractive today; Edwards Life Sciences and Fox Factory Holdings.
By the time you read this I will have made the following buys for our portfolio.
EW bought 25 shares @ $217.40
FOXF bought 50 shares @ $63.13
EW
When I write about buying quality, this is exactly what I'm looking for.
Edwards Lifesciences is the global leader in patient-focused medical innovations for structural heart disease, as well as critical care and surgical monitoring. Edwards Lifesciences is an American medical equipment company specializing in artificial heart valves and hemodynamic monitoring. It is mostly known for a transcatheter aortic heart valve made of bovine tissue within a collapsible stainless-steel stent, deployed via catheter.
Edward's revenue growth has outpaced the subsector average. Revenues rose by 15.2% sinvce same quarter last year. Edward's debt-to-equity ratio is very low at 0.19. To add to this, EW has a quick ratio of 2.22; this company clearly manages debt well. The gross profit margin is over 78% and has increased from the same quarter last year. Net profit margin exceeds 22% Net operating cash flow soared by more than 143%. EW's share price has climbed 52.11% since last year. I have a 12-month price target of $289, over 32% above the current price.
FOXF
Fox Factory Holdings has been beating analysts estimates for 7 straight quarters. But analysts don't care about what you've done, "what have you done for me tomorrow"? In the last earnings call FOXF beat estimates again, and while the CEO and division Presidents delivered lots a great news, the CFO seemed to have a more down beat spin. In my personal opinion his deliver could have been couched with greater optimism as the issues and guidance are clearly related to an excellent acquisition. Acquiring a company requires a great deal of work to integrate the operations, realign supply chains, meld the two business cultures together, in short, it takes time and its hard. The CFO is now leaving the company to pursue other opportunities....hmmmmm.
This companies stock is priced to perfection. As a result, investors an analysts have zero tolerance for any negative read from management. For our long term portfolio we have to view this as an opportunity to buy a great company at a discount and lower our cost-basis.
Deadline is Approaching
Please sponsor this important cause by clicking the link below.
For three years I've hosted a Distinguished Gentlemen's Ride in support of men's health. On Sunday the 29th of September, for the fourth year, I will don my finest attire with my fellow men and women across the globe to join the fight with The Distinguished Gentleman's Ride to raise awareness for prostate cancer and men's mental health. But before I press my tweed and polish my boots, I need you to donate what you can for this meaningful cause and help me reach my goal.
For your uncles, your brothers, your fathers and friends.
Donate what you can, for their lives need not end.
This year I'll be traveling to Ukiah, CA to support a new DGR Ride hosted by David and Martha Bookout. The DGR Ride is a program of the Movember Foundation. Movember seeks to make a global contribution to men living happier, healthier, longer lives. It is the driving force behind their campaigns, funding strategy, and vision for the future.
The state of men's health is in a crisis. By 2030 Movember aims to:
Reduce the number of men dying prematurely by 25%
Reduce the rate of male suicides by 25%
Halve the number of deaths from prostate cancer
Halve the number of men dying from testicular cancer
Halve the number of men experiencing serious mental and physical side effects from treatment for prostate cancer or testicular cancer
You can learn more at Charity Navigator: Movember Foundation
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcyclists"
- Clay Baker
Stay Invested,
Clay
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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)
CSCO reaches $60/share (1-18-2019)
VEEV reaches $145/share (2-14-2019) (achieved $145.23 on 5-10-2019)
CVS reaches $91.50 (2-27-2019)
Bull market takes another leg up (4-7-2019)
The Fed will lower rates 1-2 times (5-13-2019)
Clay's Rules
Rule #1: Don't lose money
Rule #3: Portfolios go to zero, markets don't, Stay Invested
Rule #4: When a good stock you own drops 10% below your cost basis, add shares
Rule #5: Bull markets aren't sustained without the Transports
Rule #6: When Forward P/E is lower than TTM P/E, expect earnings to increase
Rule #7: When an investment bank sells below book value, buy it
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:
CVS, CSCO, VEEV, STZ, AMZN, NVDA, BCRX, GS, BDSI, VEEV, VTI, GLD, HD, AWR, XLNX, MRVL, NBRV
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.
