Bought SFM, Sold AMT, ADBE And Half Of CRM Positions
Sold AMT this morning at $236.86. This position was purchased December 9 at $220.13.
Bought Sprouts, $21.39. Three percent of portfolio.
Sold ADBE $481.37. This was a substantial position — 20% of portfolio — bought at average price of $469 in the first week of January. Cash position now 42% of portfolio.
The AI Algo
Out of a concern for where in the cycle the market is, I’ve run dozens of backtests on minor modifications in the software to buy slower and sell faster. Midnight last night I finally found a combination that generated optimum returns — didn’t buy too slow or sell too fast over the last twelve months and is still capable of building substantial liquidity to the portfolio should this market enter a blow off phase followed by a substantial correction. I tend to be overly bearish. If there is a modification that hurts performance, it will likely be sell too fast.
Chart Of The Day
Sprouts Farmers Markets (SFM), a wholefoods grocery store chain, is showing similar strong performance to that of Weis Markets, mentioned last week (and now dropped from the SuperGrowth MultiBaggers list). Sprouts annual appreciation potential is estimated at roughly twice that of Weis Markets — 28% versus 15%. This is due to current price in relation to estimated value, and Sprouts’ more consistent performance, which should allow it, over time, a higher multiple.
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Analyst's Disclosure: I am/we are long CRM.
We offer this research as insight into what we do in our own portfolio rather than as a recommendation or offer to buy or sell securities. This research should not be your sole source of information. It is based on probabilities, not certainties.
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