The wish list this week gives great testimony to why we have been giving so much attention to energy stocks. In one week, the wish list saw individual stock gains of 10, 11, 10, 13, 14, 30, 14, 10, 49, and 26% on energy stocks. Those would be healthy numbers on a annual level, much less weekly. That said, it would not be a surprise to see some of these retrace if oil and gas fall again, as we expect.
What this does is testify to why we want to own many of these companies in a few months when we expect them to likely bottom out. Even so, in value investing it is not uncommon to buy a deeply undervalued company, only to see the price fall further before the eventual rebound. This is why we have said many times, initiating 1% positions in many of these stocks could have some merit. Of course, buying after last week's big gains may not be the best idea. I am holding out for now.
This week's research article has to do with the Yen and our addition of put options on FXY to the portfolio. We hope you enjoy and we look forward to hearing your thoughts.
We have also added Glu Mobile (NASDAQ:GLUU) and JAKKS Pacific (NASDAQ:JAKK) to the portfolio. We have already written on both and having revisited the research, believe they belong in the portfolio. If you missed it, I strongly encourage you to take a look at highlights from GLUU's earnings report this week. The numbers and line-up of future games makes it clear why GLUU belongs in our portfolio.
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Disclosure: I am long GLUU and JAKK and own puts on FXY.
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Disclosure: The author is long GLUU, JAKK, FXY PUTS.