I've been doing some research the past weeks, looking for great technicals and fundamentals, and finally I have come up with the following allocations.
I live in Italy, so this portfolio comprises a couple of stocks and one ETF from the Milan Stock Exchange; the rest is traded in the US.
10% Alerion (Milan:ARN.MI) a small cap holding ($ 400M) that invests in other companies - currently holds interests in alternate energies, real estate and financials - has seen a recent surge in volume and price on positive news and guidance 10% Strategic Hotels and Resorts (BEE) mid cap REIT - yields a 4% dividend and the price has recently hit a new 52 week high - solid fundamentals 10% Constellation Energy Partners (CEP) - besides an announced rich dividend north of 7%, since the recent IPO the priced has moved only one way: up. Shares have appreciated more than 50% since the IPO and the uptrend shows no signs of stopping.
5% Draxis Health (DRAX) - They recently posted record earnings and cash flow for 2006 - This small cap pharma hit a fresh 52 week high on march 6th. 10% Eems (Milan:EEMS.MI) - Small cap tech stock - This italian company is a market leader in semiconductor and subsystem assembly and test services - production facilities are located in China and Singapore - Citigroup raised target price after the announcement they are going to produce photovoltaic modules in 2008. 10% IShares Malaysia (EWM) - I see a great growth potential in Malaysia in the upcoming years; the recent increase in interest and price in this ETF is a confirmation something is going the right way. 15% IShares Asia Properties (Milan:IASP.MI) - Looks like Ishares hasn't issued a US counterpart to this ETF traded in the european exchanges; it tracks shares from REITs in Australia, Hong Kong, Singapore and Japan. It should yield a hefty dividend. 10% Ship Finance Intl. (SFL) - Great fundamentals and a fat yield of 8% for this company that engages primarily in the ownership and operation of oil tankers. Chart is looking good too. 20% iShares Lehman Aggregate Bond (AGG) - this ubiquitous ETF balances our portfolio - no risk and a dividend yield of almost 5%
Disclosure: Author holds positions in the above-mentioned securities.
