I know this will fall under the category of ‘what the f**k is this guy thinking about’; but bear with me. Numerous stocks in the retail and pharmaceutical industries have been crushed recently based on Trump’s border tax (retail) and assault on the drug pricing. As a result, the stocks are have experienced their own bear market. Indeed, these stocks have declined to levels comparable to their fall in 2008/2009. For example, Ralph Lauren (RL-$80) has dropped from $180/share to $80, Gilead Sciences (GILD-$65) from $120 to $65 and Teva Pharmaceuticals (TEVA-$32) from $70 to $32.
Ralph Lauren is being Added to the Dividend Growth Buy List; and that Portfolio will purchase a 25% position. I am just sticking my toe in the water on the assumption that I will have the chance to Buy this stock cheaper, when, as and if we get the Market decline that I am expecting. However, I am also assuming that pretty much everybody that wants to sell this stock has; so I don’t think that there is a lot of downside. And if there is, then our Sell Half Discipline will take me out.
On the same line of reasoning, Gilead Sciences is being Added to the Aggressive Growth Buy List and that Portfolio will Buy a 25% position.
Ditto the reasoning on Teva Pharmaceuticals. The Aggressive Growth Portfolio owned TEVA at one point was Stopped out. But it is being re-Added to the Aggressive Growth Portfolio and a 25% position established.
In addition, TEVA’s dividend yield is now sufficient to qualify it for the High Yield Universe. So it is being Added to the High Yield Buy List and a 25% position will be purchased.