Prior to BlackBerry (BBRY) announcing its results, I wanted to give a brief update on the performance of the Young and Restless Retirement Portfolio. Once we find out what the numbers are for the initial sales of the Z10, this could be a very quick turnaround stock within the portfolio.
As so eloquently noted by Seeking Alpha's number one technology guru, Ashraf Eassa, in this new article:
Take a deep breath everyone - BlackBerry is set to announce its earnings on 3/28. Right now, most investors are probably some combination of nervous and excited (with the magnitude of each dependent on the size of the position). Now, as much as I love the thrill of going in guns blazing into what is essentially a binary event, I don't think that this is a prudent move for anyone without nerves of steel.
I agree that for many investors, nerves of steel are required. For our aggressive portfolio, we will either dump the shares if the numbers are lousy, or ride the wave up if the numbers are positive.
Be prepared to move quickly.
Remember What The Goal Of This Portfolio Is
If you recall, this portfolio is for the younger, aggressive investor with a long time horizon. As I noted previously in my last update:
Our young investor is between the ages of 21 and 25 and fresh out of whatever educational institution they attended. It could have been college, trade schools, or even their first job to cut their teeth on.
Now they are ensconced in a well paying job, career, or entrepreneurial enterprise with a very bright future ahead of them. Probably lasting for the next 35-45 years.
Their income level is strong and they have just begun socking away the maximum amount of money allowed into all the tax deferred savings plans available, and are well on their way towards saving another 10-20% outside of those plans.
These investors are off to a great start.
Recently, they inherited a bunch of money from a long lost Uncle and have money to invest with. Normally, I would say let's start the dividend investment strategy now so you can create wealth for the long haul.
Today I will focus on the possibility of creating enormous wealth. If there was one time in investors' life that I think they should give this a shot, it would be under the circumstances I have outlined above.
As I have stated repeatedly, this portfolio will be a quick moving, rotational portfolio designed to create wealth in stocks that I see having the potential to create great wealth.
With that potential comes the associated risks, and this portfolio is not for the faint of heart. That being said, let's take a look at our results thus far.
|Young And Restless Portfolio|
|Stock||Orig.Price||Price Now||Orig. Invst||Value Now||%+/-|
We began with $80k and recently sold our position in Netflix (NFLX), to add more shares of ACHN. Since our total portfolio is up by 40% ($112k-$80k=$32k, or +40%), thanks to an over 120% gain in NFLX, we not only have core positions in stocks that could create wealth, but also a very healthy cash position ready to jump on the next opportunity.
Actions To Be Considered Now
I am ready to double down on YHOO if we decide to sell BlackBerry. My target price on the upside for BBRY is $25.00/share, and I will dump the stock if it drops down to $10.00/share. As of now, anything can happen, and we will find out shortly.
Get ready to act, if you are following this approach!