The Young And Restless Portfolio Update: Heading Into 2014 After A Fabulous 2013

Dec.31.13 | About: Ambarella (AMBA)

What can be said that has not already been said. Our Young And Restless Retirement Portfolio has had a fabulous year. At first we enjoyed a triple with Netflix (NASDAQ:NFLX), and a bull run with Amazon (NASDAQ:AMZN), but it was our discovery of two small cap companies that has put this portfolio on the map; Ambarella (NASDAQ:AMBA) and Galena BioPharma (NASDAQ:GALE). I rarely toot my own horn, but this article on Galena, as well as this more recent follow up article, and this one on Ambarella, brought these 2 stocks into the Seeking Alpha mainstream. As a result, many folks have made some stunning profits.

While this is our final update for the year I feel strongly that this portfolio will continue to shine in 2014.

Blockbuster Returns Have Made This Portfolio A Superstar

The "Young and Restless" portfolio now consists of Galena Biopharma, Amazon, Facebook (NASDAQ:FB), Yahoo (NASDAQ:YHOO), Zynga (NASDAQ:ZNGA), Ambarella, and Groupon (NASDAQ:GRPN).

Take a look at these wonderful results:

Stock Orig.Price Price Now Orig. Invst Value Now %+/-
AMZN 230 393 10,000 17,100 71%
GALE 2 4.82 10,000 24,100 141%
AMBA 17 32 10,000 18,900 89%
FB 24 54 10,000 18,900 89%
YHOO 22 40 20,000 33,800 69%
ZNGA 3 3.88 10,000 13,000 30%
GRPN 10 11 10,000 11,000 10%
Portfolio Value xxxx xxxx xxxx 136,800
Cash xxxx xxxx xxxx 22,700
Total xxxx xxxx xxxx 159,500
Click to enlarge

We opened this portfolio with an $80k investment about 13 months ago, and our goal was to create wealth quickly. The results speak for themselves: A 99% increase in value with $22,700 in cash to find another home in 2014! We even took a loss of 60% in one stock, Achillion (NASDAQ:ACHN), which was, and still is, a disappointment in the hepatitis c drug wars. Even though they are not out of the picture, I am not jumping back on the bandwagon while the FDA has a hold on the trials.

What Will Be The Catalysts In 2014

Glance at the stocks in the portfolio for a second. The companies are not unknowns, and each has a strong business model for a growth company. Not one of them is burdened with too much debt, and GALE, AMBA, GRPN, YHOO, and ZNGA have zero debt.

As the online retail business continues to grow, Amazon has no equal and will keep growing. It might even make money in 2014! Ambarella has blown away both earnings and revenue estimates, and has come out with new products in the ultra high definition, 4k sector that even has Google (NASDAQ:GOOG) potentially using them for its wearable devices in 2014. Not only that, Ambarella already has established itself as THE highest quality product for sports cameras, security cameras, and automobile "backup" cameras.

Galena should continue to deliver positive results as they proceed in phase 3 trials of their potential legacy drug, NeuVax, and sales of Abstral could surprise everyone. Keep in mind that Galena also has a strategic partnership with Teva Pharmaceuticals to launch NeuVax in Israel, and other parts of the world, and that partnership might turn out to be more down the road (speculation on my part). Don't forget the strong pipeline of drugs in various phases of clinical trials as well.

Yahoo and Zynga should continue to make gains as they restructure their businesses, and Facebook should finally post some positive earnings. While Groupon is our new wild card, I like what it has done to offer more for the consumer.

All in all, I like all of the stocks right now.

The Bottom Line

I hope that many of my readers did their own research and bought shares in some of these (or all of them), and have made a stunning amount of money in 2013.

I have no idea what 2014 will bring of course, but for now I do not see any storm clouds gathering for these stocks.

Happy, healthy and prosperous New Year to all, and I hope we do as well in 2014, as we have done in 2013!

Disclaimer: The opinions of the author are not recommendations to either buy or sell any securities. Please remember to do your own research prior to making any investment decisions.

Disclosure: I am long AMBA, FB, GALE, GRPN, YHOO, ZNGA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.