Soos Global Cap...'s  Instablog

Soos Global Capital
Send Message
MUST READ: IMPORTANT DISCLOSURE INFORMATION in the 'Company' section below applies to ALL correspondence made by Soos Global on Soos Global Capital Advisors, LLC was founded by our Principal, Edward J. Leventhal, after a 23-year career at Salomon Brothers, which became... More
My company:
Soos Global Capital Advisors, LLC
My blog:
SoosGlobal...Market Commentary..Portfolio Food for Thought
  • American Eagle Outfitters (AEO) And Solar ETF (TAN) 0 comments
    Jan 3, 2014 10:56 AM | about stocks: AEO, TAN

    This posting follows our earlier announcement of "New Content for Soos Global Market Musings". Please read the announcement which explains the intent and purpose of this new content style. Postings will vary in size and depth of analysis, but collectively should provide interesting points over which to muse about markets!
    We look forward to hearing your feedback.


    In a recent note sent to our investors, we updated two portfolio moves from Dec. 31, 2013 that fit our overall global strategic positioning.

    AEO…decided to add to position, taking it from 1.5% to 2.5%. This leaves room to take it up should it settle back meaningfully. With all the negative press about retailers over Christmas, lots of the bad news ought to be priced in. Retailers are expected to have strong sales, though narrow margins are expected due to heavy discounting. AEO's stock is one of the few that is trading near the 52-week low, and with the plans to turn around earnings through more operating efficiencies at the stores and by increasing sales from factory stores and overseas partnerships, the upside ought to be good, especially as the emerging market countries' middle classes start to spend more aggressively. The technicals had looked quite bad until recently when momentum shifted up and the 10dma turned up.

    (click to enlarge)

    TAN….In the context of the global energy theme, I've focused increasingly on solar. The solar stocks had a good 2013, but have come off since Nov highs. In this sector, I believe it's better risk/reward tradeoff to enter via an ETF. Many of the companies have struggled to be profitable and have relied on government programs and tax breaks, which is understandable given the enormous upfront capital requirements and the long-term payback period, the public sector has to 'partner' with the private sector if they want this societal good to advance. The opportunities are quite global, but I've even noted NYC launching a major 47-acre site on the former Freshkills dumping grounds and land fill that should break ground in '15. Also, Japan's liberalization of their electricity industry could lead to more solar. China, where many solar companies reside, should continue to support solar as a way to fight their dirty coal pollution problem. I like the improving technicals as momentum shifts up and support held in recent days. Took a starter position of 1.5% (See 2 charts below. The first is TAN. The second compares TAN to oil ($WTIC).)

    (click to enlarge)

    (click to enlarge)

    Please continue to visit Soos Global Market Musings for updates.

    (Sign up to "Follow by Email"! And share with others!)

    (Please note: This article is solely meant to be thought provoking and is not in any way meant to be personal investment advice. Each investor is obligated to opine and decide for themselves as to the appropriateness of anything said in this article to their unique financial profile, risk tolerances and portfolio goals).
    Disclaimer: Please read and consider important information related to all communication made by Soos Global on this site by clicking here.
    Additional Disclaimer: currently long many stocks/ETFs incl AEO and TAN. Positions may change at any time without notice.

    Disclosure: I am long AEO, TAN, .

    Additional disclosure: Positions may change at any time without notice.

    Stocks: AEO, TAN
Back To Soos Global Capital's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.