The Growth Portfolio Keeps On Growing

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Includes: FCAU, QRVO, SHAK, UTHR
by: Abba's Aces
Summary

I added positions in Shake Shack, United Therapeutics, and Fiat Chrysler while subtracting my position in Qorvo.

This is definitely a high flying portfolio which is meant to be dynamic.

Since that time the portfolio has grown as high as 27 positions and is up 6.46% for 2015 compared to the 2.35% gain in the S&P 500.

Back in December 2014 I decided that I wanted a portfolio strictly for high flying high growth stocks and added Celgene (NASDAQ:CELG) as the first stock in the portfolio. Since that time the portfolio has grown as high as 27 positions and is up 6.46% for 2015 compared to the 2.35% gain in the S&P 500. The intention of this portfolio is to be liquid, or for short-term investments.

Almost on a weekly basis I've been making moves in this portfolio, either by adding a stock or removing. After breaking out my screens into the different sectors I adjust my search criteria within each sector. First and foremost I look for companies which are midcaps or larger (over $2 billion), have been profitable over the past year, and depending on the sector usually double digit earnings growth rates for the short- and near-term earnings expectations (except for utility stocks). This past week I sold Qorvo (NASDAQ:QRVO), bought Fiat Chrysler (NYSE:FCAU), Shake Shack (NYSE:SHAK), and United Therapeutics (NASDAQ:UTHR). I'd like to give a quick synopsis of each right now and provide an update for the entire portfolio.

Qorvo

The stock appears to be inexpensively valued on next year's earnings estimates and fairly valued on earnings growth potential, and has great near- and long-term earnings growth expectations. The company doesn't pay a dividend and has decent financial efficiency ratios. During the past week the market saw Avago (NASDAQ:AVGO) make a bid for Broadcom (BRCM) which took the rest of the chip world up along in a rising tide. The reason I got out of the stock was because I felt that the company had increased in price far too quickly but also because the long-term earnings growth expectations have decreased a bit is below that I like it to be for a technology company. Don't get me wrong, this is a great company still but I just think I can pick it up again if it drops.

Fiat Chrysler

The stock appears to be inexpensively valued on next year's earnings estimates and fairly valued on earnings growth potential, and has great near- and long-term earnings growth expectations. The company doesn't pay a dividend and the financial efficiency ratios are pretty small. During the past week Kelley Blue Book came out and said that the company anticipates Fiat to have sales growth of 2.9% for the month of May. But the good news was tempered by bad news with the company recalling over four million vehicles due to the Takata air bag debacle. The reason I got in the stock was because I simply feel that the company is poised for growth with better prospects than General Motors (NYSE:GM).

Shake Shack

The stock appears to be expensively valued on next year's earnings estimates and on earnings growth potential, but has great long-term earnings growth expectations. The company doesn't pay a dividend and the financial efficiency ratios are dismal. The reason I got in the stock was because it dropped significantly after a meteoric rise and felt that it could skyrocket again so I wanted to take a risk and ride the volatility, there wasn't much more to it. This is nothing more than just a speculation play on the portfolio.

United Therapeutics

The stock appears to be fairly valued on next year's earnings estimates and expensive on earnings growth potential, but has great long-term earnings growth expectations. The company doesn't pay a dividend but has a phenomenal return on investment value. The reason I got in the stock was because it's getting difficult to find a healthcare name where all the big money isn't right now to be able to profit immensely when they eventually do find it.

Now it's time for an update on the entire portfolio.

Company

Ticker

% Change
incl. DIV

% of
Portfolio

Skechers USA Inc

(NYSE:SKX)

58.53%

5.04%

Netflix Inc

(NASDAQ:NFLX)

41.78%

4.50%

Harman Intl Inds Inc

(NYSE:HAR)

18.89%

3.78%

Valeant Pharmaceuticals Intern

(VRX)

16.82%

3.78%

Monster Beverage Corp

(NASDAQ:MNST)

13.24%

3.99%

Align Technology Inc

(NASDAQ:ALGN)

7.12%

5.89%

Illumina Inc

(NASDAQ:ILMN)

6.75%

3.39%

Fiat Chrysler Automobiles N V

1.64%

3.23%

Facebook Inc CL A

(NASDAQ:FB)

1.19%

3.21%

United Therapeutics Corp Del

0.64%

3.32%

Whitewave Foods Co

(NYSE:WWAV)

0.64%

3.39%

Level 3 Communications Inc

(NASDAQ:LVLT)

0.49%

3.19%

Polaris Industries Inc

(NYSE:PII)

-1.18%

5.52%

Viasat Inc

(NASDAQ:VSAT)

-1.19%

3.14%

Enbridge Energy Partners LP

(NYSE:EEP)

-1.97%

3.63%

Carnival Corp

(NYSE:CCL)

-2.58%

3.81%

American Tower Corp REIT

(NYSE:AMT)

-3.15%

5.38%

Shake Shack Inc Cl A

-3.60%

3.12%

Markwest Energy Partners LP

(NYSE:MWE)

-3.66%

3.46%

Bristol Myers Squibb Co Com

(NYSE:BMY)

-4.69%

3.45%

Restoration Hardware Hldgs Inc

(NYSE:RH)

-5.42%

3.00%

Under Armour Inc

(NYSE:UA)

-6.43%

3.30%

Dominion Resources Inc

(NYSE:D)

-6.45%

4.72%

Lululemon Athletica Inc Com

(NASDAQ:LULU)

-7.83%

3.25%

Ford Motor Company

(NYSE:F)

-8.14%

2.92%

Royal Caribbean Cruises LTD

(NYSE:RCL)

-8.86%

2.89%

ICICI Bank Ltd-SPON ADR

(NYSE:IBN)

-18.49%

2.59%

Cash

$

0.51%

These are definitely high flying stocks with the exception of Dominion , Mark West Energy, American Tower , and Enbridge Energy Partners . All these puppies are definitely geared for growth in my opinion. So far this portfolio is beating the overall market but the key is to keep tabs on all your stocks regularly as well.

Disclaimer: This article is in no way a recommendation to buy or sell any stock mentioned. This article is meant to serve as a journal for myself as to the rationale of why I bought/sold this stock when I look back on it in the future. These are only my personal opinions and you should do your own homework. Only you are responsible for what you trade and happy investing!

Disclosure: The author is long ALGN, AMT, BMY, CCL, D, EEP, F, FB, GM, HAR, IBN, ILMN, LULU, LVLT, MNST, MWE, NFLX, PII, RCL, RH, SHAK, SKX, UA, UTHR, VRX, VSAT, WWAV. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.