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For those not frazzled by the current market choppiness, Anand Chokkavelu, from the Motley Fool outlines six possible stock acquisitions for September. There is the possibility of finding bargains and strengthening your portfolio and that is what Anand is proposing.

He breaks his selections into three categories:

Blue Chips On Sale

Company

Dividend Yield

YTD Price Change

Berkshire Hathaway (NYSE:BRK.A) None (9%)
Disney (NYSE:DIS) 1.2% (9%)

Sources: Yahoo Finance and Google Finance.

This allows you to stand on the shoulders of Warren Buffet with Berkshire Hathaway and Anand is high on ESPN which is a key contributor to the Disney stable of companies.

Beaten-Down Steel Companies

Company

Dividend Yield

YTD Price Change

ArcelorMittal (NYSE:MT) 3% (42%)
Nucor (NYSE:NUE) 4.1% (18%)

Sources: Yahoo Finance and Google Finance.

Steel companies have seen big swings but there will be long term demand for raw materials and these two companies have upside according to Anand.

Disaster Plays

Company

Dividend Yield

YTD Price Change

BP (NYSE:BP) 4.3% (11%)
Transocean (NYSE:RIG) 5.7% (19%)

Sources: Yahoo Finance and Google Finance.

Remember the BP Gulf oil spill back on April 20, 2010 Anand thinks it's time for investors to revisit it. Since the day before the spill, both BP and Transocean (the oil rig owner) have lost a third of their values. Be cautious however as litigation will continue for a long time on the spill.

Anand's summary: "Berkshire Hathaway, Disney, ArcelorMittal, Nucor, BP, and Transocean -- offer good risk/reward characteristics depending on the type of investment you're looking for" Anand owns five of the six he is recommending.

We will compare these companies with our benchmark set of dividend ETFs that are well diversified.

The benchmark ETFs are:

Asset Fund in this portfolio
Real Estate ICF (iShares Cohen & Steers Realty Majors,
Cash Cash
Fixed Income TIP (iShares Barclays TIPS Bond,
Emerging Market VWO (Vanguard Emerging Markets Stock ETF,
US Equity DVY (iShares Dow Jones Select Dividend Index,
US Equity VIG (Vanguard Dividend Appreciation ETF,
International Equity IDV (iShares Dow Jones Intl Select Div Idx,
High Yield Bond HYG (iShares iBoxx $ High Yield Corporate Bd,
International Bonds EMB (iShares JPMorgan USD Emerg Markets Bond,

Portfolio Performance Comparison

Portfolio/Fund Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
Retirement Income ETFs Tactical Asset Allocation Moderate 8% 80% 11% 84% 10% 71%
Retirement Income ETFs Strategic Asset Allocation Moderate 5% 42% 5% 23% 3% 14%
6 Stocks to Buy in September -28% -86% -22% -39% -6% -15%

The returns certainly don't make for happy reading. The only conclusion for this portfolio is that it has only got upside left. However, recent performance is not encouraging.

click on images to enlarge

Three Month Chart One Year Chart Three Year Chart Five Year Chart

This is a portfolio to watch to see if there is any bounce based on the selection criteria but this is not something that looks appealing. The blue chips are beaten down by the beaten down and high risk stocks.

Disclaimer: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.

Source: 6 Motley Fool Stocks to Buy In September