• Portfolio Management for November 4, 2013

    I sold PKG on strength yesterday because its EV pattern was showing weakness in a weak market.
    DRI was also showing weakness, but since it's close to its stop and I am down to only two long trades, I chose to keep the stock.



    I hesitate to buy a position in ELY. I like the ELY story: Golf equipment, new products getting to market, gaining market share, reduced costs and hence reduced losses. Since the price per sales is around 0.7, the stock has much room to continue up, especially since next quarter will factor in holiday results.

    The main problem is to find a safe entry spot. We can see below that the stock is still making lower lows and lower highs, although EV shows that selling has stopped. In general I do not buy when a stock breaks the previous low.





    GLW is also an interesting story. It has initiated an accelerated buy back. The PE level looks low enough to me and the Samsung relationship could produce good results.



    MU also looks terrific, but I will wait until the stock falls into a proper buy zone.



    AA is mostly an aluminum price improvement story that is forcing shorts to cover.



    SPLK looks also good, but needs to come back into a buy zone.



    NOC, BC and GE are not shown here, but are still of interest.