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I Think, Therefore I Invest: A Newbie's Stock Investing Experience


I seek to provide a glimpse of my foray into the investing world, my past trades, recent additions in my holdings, my current portfolio, as well as possible future changes.

A lot of stocks are on my radar for possible future position initiations and replacement of existing positions.

But I plan to hold on to most of the existing stocks in my portfolio for the long term for growth and dividends.

So this is my first Seeking Alpha blog post ever and as such I merely seek to provide a glimpse of my foray into the investing world, my past trades, recent changes in my holdings, my current portfolio, as well as possible & anticipated changes in the future.

Present Portfolio - Highest to Lowest Cost Basis (Left to Right, Top-Down) ^Present Portfolio 09/01/2017 - Highest to Lowest Cost Basis (Left to Right, Top-Down). Made by Author.

I am in my mid-20s, currently on-leave for possible further post-graduate studies soon abroad. In the mean time, one of my hobbies is educating myself in investing, in general, and familiarizing myself with stock investing, in particular. I have done so only since the beginning of 2015. Thus, I'm really still a newbie in investing and in the capital markets world to be honest. Nevertheless, I have learned significantly a lot since then from just purely reading the basics of investing to actually making a couple of trades myself (rejoicing in my gains but also being humbled from my losses). I am continually learning about the flux of the U.S. and global markets as well as the idiosyncrasies of particular industries and companies that peak my interest. Yet, I do have to admit that there is truly so much more that I have to learn before even considering myself as a "diligent investor". For now, I enjoy reading and learning more about stock investing from Seeking Alpha articles & from other online sources and I would continue to do so when I have the time.

My objective in investing is merely to preserve and grow my late parent's hard-earned money for productive and necessary needs in the long-term future. Fortunately, I am already covered with near-term needs, so I do not have to rely on income from the portfolio for my sustenance right now. I plan to use the dividends for reinvestment or as a cash position in the portfolio to initiate or add to an existing position in the future. Given my age, investment goals, and current financial coverage for my near- and mid-term needs, I have found myself wanting to be a bit 'moderately aggressive' in my investing profile. Thus, even though I hold some bond securities for diversification in a separate account, I have been more attracted to the equity markets, and stocks particularly, in their potential to help me achieve my investment objectives.

Before I give an overview of my current stock portfolio, I delve first briefly into my stock investing genesis and how I got hooked on investing. It started in January 2015, sadly just a few months after my mother passed away. My father had already gone too about a decade before then. Beyond my grief and loss, I also had to deal with settling their estate, which fortunately now has been already done. Among them were the investment accounts my family had with Charles Schwab [NYSE:SCHW]. It was only then that I learned about their existence.

I had learned that my parents started investing only with about $20K back in the early 90s. That has since handsomely grown to more than $150K in various accounts by the end of 2013. They have now been consolidated into one regular brokerage account still under Schwab. Since 2015, I started to read about investing in order for me to understand and get a grasp of what my parents had worked hard for. Thus, I have aimed to at the least preserve it for family and important matters only in the future.

For the entire year of 2015, I didn't make any move with the account, except getting online access to monitor it. Two notable transactions in 2015 include: (1) the special cash dividend of $1,650 paid on July 6, 2015 as part of the merger between former Kraft Foods Group Inc [KRFT] and with then-private company Heinz to form the new publicly traded Kraft Heinz Co [KHC]; and (2) the spin-off of PayPal Holdings Inc [PYPL] from eBay Inc [EBAY] which split my original cost basis of EBAY shares into 60.73% PYPL and 39.27% EBAY resulting in 100 shares each.

It was only at the beginning of 2016 that I started to make changes with the portfolio. It was initially composed of the following (with most of the positions which were then still existing bought in 2010):

  1. Exchange Traded Funds: SPDR S&P 500 Trust ETF [NYSE: SPY]
  2. Consumer Staples:
    1. PepsiCo Inc [NYSE: PEP]
    2. Procter & Gamble Co [NYSE: PG]
    3. Coca-Cola Co [NYSE: KO]
    4. Kraft Heinz Co [NASDAQ: KHC]
    5. Coca-Cola Enterprises Inc (now Coca-Cola European Partners PLC) [NYSE: CCE
    6. Mondelez International Inc [NASDAQ: MDLZ]
  3. Information Technology:
    1. Microsoft Corp [NASDAQ: MSFT]
    2. Intel Corp [NASDAQ: INTC]
    3. Twitter Inc [NYSE: TWTR]
    4. Oracle Corp [NYSE: ORCL]
    5. Cisco Systems Inc [NASDAQ: CSCO]
    6. Yahoo! Inc [YHOO, now closed-end management investment co AABA]
    7. PayPal Holdings Inc [NASDAQ: PYPL]
    8. eBay Inc [NASDAQ: EBAY]
  4. Consumer Discretionary: 
    1. Walt Disney Co [NYSE: DIS]
    2. Sirius XM Holdings Inc [NASDAQ: SIRI]
  5. Health Care: 
    1. Bristol-Myers Squibb Co [NYSE: BMY]
    2. Pfizer Inc [NYSE: PFE]
  6. Financials: Bank of America Corp [NYSE: BAC]
  7. Telecommunication Services: 
    1. AT&T Inc [NYSE: T]
    2. Philippine Long Distance Telephone Co ADR [NYSE: PHI]
  8. Industrials: General Electric Co [NYSE: GE]
  9. Utilities: Consolidated Edison Inc [NYSE: ED]
  10. Mutual Fund: Value Line Premier Growth Fund [VALSX] 

2016 Portfolio Transactions

My first trades were starting my position in customer relationship management-focused cloud enterprise software company [NYSE: CRM] and a position in Delta Air Lines [NYSE: DAL] in late February. Most of the succeeding trades occurred the next month. They include exiting long-term positions PHI and ED (for a 23.5% loss and a 63.25% gain, respectively), as well as incurring a minimal short-term loss in my first foray directly into the renewable energy sector via SunEdison [SUNE, now OTCPK:SUNEQ]. My other initiated bets in the renewable industry were U.S. residential solar power provider Sunrun [NASDAQ: RUN] and Canada-based industrial biotechnology & sustainable chemical company BioAmber [NYSE: BIOA]. March was also the month I began a position in cloud content management company Box [NYSE: BOX] and in mobile advertising and content solutions company Digital Turbine [NASDAQ: APPS].

In spite of reading about dividend growth investing, the compounding effect, how they have historically boosted total returns, and even beat averages of non-dividend providing equities, I still stubbornly initiated a lot of minor speculative positions throughout 2016 due to their "potentially" high reward (but also high risk) nature. These include a lot of biotechnology companies still in their nascent stages such as: pain & pruritus alleviation-focused clinical-stage biotech Cara Therapeutics [NASDAQ: CARA], pet therapeutics development-stage biotech Aratana Therapeutics [NASDAQ: PETX], specialty pharmaceutical on self-administered parenteral drug/device combination products Antares Pharma [NASDAQ: ATRS], cardiopulmonary disease treatment clinical-stage Bellerophon Therapeutics [NASDAQ: BLPH], and fully-integrated oncology drug development biopharma Celsion Corp [NASDAQ: CLSN].

I also bought minor positions in wearable health & fitness devices company Fitbit [NYSE: FIT], private education financial services company (SallieMae) SLM Corp [NASDAQ: SLM], and IoT-oriented Global X Internet of Things Thematic ETF [NASDAQ: SNSR]. To cap up 2016, I also received a special dividend of $1,450 in May from my 100 shares in Coca-Cola Enterprises due to the company's merger with Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke AG (Germany) into the multinational bottling company Coca-Cola European Partners PLC [NYSE:CCE].

Summary of 2016 Portfolio Transactions

Date Stock Sector Buy Sell

Realized Gain/Loss %

Realized Gain/Loss $
02/25 CRM InfoTech 50
" DAL Industrials 50
03/01 PHI
-100 -23.53% -$1,146.98
03/02 DAL

03/07 RUN Industrials 200

03/08 SUNE Industrials 200

03/14 ED -100 +63.25% +$2,838.20
" APPS InfoTech 500

03/15 BOX InfoTech 100

" SUNE +200

03/16 BIOA Materials 200

" APPS +500

03/17 BIOA +200
03/21 BIOA +100
" CARA HealthCare 200
03/23 SUNE -400 -39.04% -$322.46
" ATRS HealthCare 500
" PETX HealthCare 200
03/28 FIT InfoTech 50
05/31 CCE
Special Div $1,450
07/22 BLPH HealthCare 600
" SLM Financials 100
07/25 CLSN HealthCare 400
09/26 SNSR Tech ETF 40

2017 Positions Initiated and Increased

Recently in the middle of the year, I rebalanced my stock portfolio and here's a brief overview of stock positions I initiated and increased so far.

Date Stock Shares Sector
05/22 (CPE) (100) (Energy)
06/08 DFT 100 REITs
" DLR 50 REITs
06/12 BIP 15 Utilities
06/19 PEGI 100 Utilities
" BIP +85
06/21 PEGI +100
06/23 (AMD) (200) (InfoTech)
" (RUN) (+100) (Industrials)
06/26 HASI 100 REITs
" NTNX 145 InfoTech
" MU 100 InfoTech
06/27 ATRS 800 HealthCare
" NTNX +55
06/28 BOX +90 InfoTech
06/30 CONE 30 REITs
07/03 " +50
07/05 BX 100 Financials
" PEGI +100
" HASI +100
" CONE +50
" BEP 100 Utilities
" NEP 100 Utilities
07/10 BX +100
" PWR 100 Industrials
07/11 GDS 200 InfoTech
08/22 BABA 20 InfoTech
08/31 BABA +20

*Stocks in BOLD are initiated positions that still exist. Tickers in (Italics & in parentheses) have been sold.

1. Renewable Energy/YieldCos : +3

A recent SA article by Dividend Sensei fortunately covers all three of the yieldcos I currently own, and has reinforced my decision of holding them for the long-term.

Pattern Energy is my second largest holding by cost basis, largest holding in the renewable energy sector, largest of 4 recent (non-micro) small-cap additions by cost basis, and currently my top yielder moving forward. PEGI is an independent wind power producer with 20 wind power facilities generating 2,736 MW capacity in the U.S., Canada and Chile. It has investment grade quality projects with long-term PPAs (15 years average - 91% contracted) with quality off-takers (whose average credit rating is 'A'). It has a sound balance sheet due to prudent capital management, and is also not taxable for at least 10 years.

Recent news about its key strategic initiatives last June 19 include: [1] its expanded robust, high-quality development pipeline (70% increase) of 10GW in the U.S., Canada, Mexico & Japan (as part of $1B new capital committed to Pattern Development 2.0); [2] its improved alignment with Pattern Development 2.0 by having PEGI initially owning 20% of Pattern Development 2.0 with an option of increasing its ownership interest to ~29%; and [3] its new strategic relationship with one of Canada’s largest pension investment managers, Public Sector Pension (PSP) Investments, wherein the latter has $500m co-investment in PEGI's projects.

All of these have given me added reassurance about its future growth. This is in line with their Pattern 2020 Vision to double in size and be a top competitor in the renewable energy sector, which were elaborated in their Investor Day 2017 Presentation last June 29. PEGI also has recently increased its dividend for 14th consecutive time which is to be paid on October 31. The upcoming $0.42/share quarterly dividend goes ex-div on Sept. 28. Here's a recent SA article by Dividend Sleuth explaining how PEGI could be the wind at your back blowing you towards more growth and yields.

^PEGI Investor Day 2017 Presentation, June 29, 2017

NextEra Energy Partners is a middle-tier holding of mine by cost basis, 3rd largest (non-micro) small-cap addition by cost basis, and 2nd largest holding in the renewable energy generation industry. NEP is a limited partnership that deals primarily with clean energy projects, particularly 2,600 MW of wind and 400 MW of solar projects in the U.S. and Canada, as well as 7 natural gas pipelines in Texas. The latest presentation dated August 30 illustrates that NEP has a high-quality portfolio with an average remaining contract life of 18 years with counterparties that have an average credit rating of 'A3'. NEP itself has an issuer credit rating of BB+.

Its tax-advantaged structure includes: (A) not paying significant U.S. federal taxes for at least 15 more years, (B) distributions to unitholders treated potentially as return of capital for at least 8 more years, and (C) its issuance of a Form 1099 (and not K-1) due to NEP being treated as a C-Corp for U.S. federal tax purposes. NEP's growth stems from acquisitions from Nextera Energy Resources, organic growth via potential expansion & repowerings, and possible 3rd party acquisitions in the renewable generation and midstream markets. Lastly, NEP plans to grow its distributions 12%-15% annually until 2022.

^NEP August 2017 Investor Presentation, August 16, 2017

Brookfield Renewable Partners is also a middle-tier position by cost basis, the smallest new mid-cap addition, and completes my three holdings in the RE yieldco sector. BEP is one of the largest public pure-play renewable companies globally with $26 billion worth of total power assets and 10.6 gigawatts of capacity. This blue-chip renewable limited partnership operates in 15 markets in 7 countries with 261 generating facilities in North America, Brazil, Colombia and Europe. Hydroelectric power (considered the highest value renewable resource with significant barriers to entry) currently comprises about 88% of its portfolio, but it also has wind farms in Europe, Brazil and North America comprising 11% of the portfolio.

^BEP August 2017 Investor Fact Sheet 

According to its August 2017 Corporate Profile, cash flows are stable due to revenues being 92% contracted from 16 year inflation-linked contract terms. BEP plans to deliver long-term total returns of 12% ‒ 15% annually, which includes targeted annual distribution increases of 5%‒9% coming from organic cash flow growth and proprietary project development. It also possesses an investment grade balance sheet, significant liquidity, BBB+ credit rating, proven access to capital via its sponsor/parent company Brookfield Asset Management [NYSE:BAM], and with over $2 billion of available liquidity to grow the business accretively.

^GLBL TerraForm Global Portfolio Snapshot

^TERP TerraForm Power Portfolio Snapshot

The recent merger agreement of emerging markets-focused TerraForm Global [NASDAQ:GLBL] and the sponsorship transaction of developed global markets-oriented TerraForm Power [NASDAQ:TERP] both with BEP-parent & new TerraForm sponsor BAM bodes well for future drop-downs and asset development of BEP too, which would also boost and diversify the pipeline towards more wind and solar projects. The most recent SA article is by The Value Portfolio. Other recent detailed SA articles that include the TERP & GLBL transactions by BAM, among other developments, are by Caiman Valores and by Ploutus Investing. I expect more updates in their upcoming 2017 Brookfield Investor Day event on September 27, 2017.

^BEP August 2017 Corporate Profile

*Renewable energy wrap up: Dividend Sensei provides recent fair value estimates of all three RE Yieldcos: PEGI, NEP, and BEP.

2. Clean Energy REIT : +1

Hannon Armstrong is my largest micro-cap portfolio addition, 2nd largest renewable energy-oriented stock addition by cost basis, my new 6th highest yielder moving forward, the only stock classified as a mortgage REIT by the Global Industry Classification Standard (GICS) in my portfolio, and (per GICS) the 2nd largest financial sector holding by cost basis & one of 2 recent financial sector additions to the portfolio. HASI is a leading investor in energy efficiency, renewable energy and sustainable infrastructure. This Clean Energy REIT provides preferred or senior level capital to established sponsors and high credit quality obligors for assets that generate long-term, recurring and predictable cash flows. The Energy Efficiency Projects offers improvement and installation services to various building components, including heating, ventilation and air conditioning systems, lighting, energy controls, roofs, windows, as well as building shells, and power systems. The Renewable Energy Projects deploys cleaner energy sources, such as solar and wind to generate power production. Sustainable infrastructure projects include water or communications infrastructure. It has 25+ years of experience in renewable energy financing and 15+ years in energy efficiency financing. It has invested ~$1B annually with >165 investments having an average remaining balance per transaction of $12M. The debt and real estate investments are 98% investment grade.

HASI's August 2017 Investor Presentation indicates it has a $2.1B Portfolio with a yield of ~6.2% as of June 30, 2017. Asset classes consist of 40% solar, 28% wind, 24% efficiency, and 7% sustainable infrastructure. Its 12-month pipeline is worth >$2.5B comprising 62% efficiency, 27% wind, 8% solar, and 3% sustainable infrastructure assets. This makes their managed assets worth ~$4.6B. In sum, HASI an attractive yield, high credit quality, strong diversified portfolio, and good governance by an internally managed team with deep industry experience since the late 1980s. The most recent SA coverage is by Looking for Diogenes, but a more detailed exposition was provided by REIT expert Brad Thomas in June 2017.

^HASI August 2017 Investor Presentation

3. Data Center REITs/Company : +4

CyrusOne is my top holding in the portfolio by cost basis, top holding in the multi-tenant data center REIT industry, largest of 6 new mid-cap additions by cost basis, and my new 8th highest yielder moving forward. CONE specializes in highly reliable enterprise data center colocation, engineering facilities with the highest power redundancy (2N architecture) and power-density infrastructure required to deliver excellent availability. Its portfolio includes more than than 35 enterprise-class facilities across 3 continents, and more than 4 million square feet of total net rentable square footage (NRSF). CyrusOne has introduced industry firsts such as the low-cost interconnection platform CyrusOne National Internet Exchange (IX), Massively Modular® data-center engineering and an online purchasing interface known as Data Center Marketplace. CONE's goal is to be the preferred global data center provider to the global Fortune 1000. It serves hundreds of customers and more than 185 of Fortune 1000 and nearly half of the Fortune 20.

^CONE Q2 2017 Earnings Presentation, Aug. 3, 2017

DuPont Fabros is my 2nd largest holding in the DC REIT space by market value, 3rd largest new mid-cap addition by cost basis, and would soon be converted to ~54.5 shares of Digital Realty this 2nd half of 2017. This wholesale DC REIT operates 12 data centers in 3 major U.S. markets (Silicon Valley, Northern Virginia & Chicago) and Canada, which total 3.5M gross square feet and 302 MWs of critical load capacity. DFT is a leader when it comes to scale, hyper-scale and wholesale data center design, building and operation. Its occupancy is in the high 90s is currently developing 6 properties with 79MW capacity. Customer base is high-quality with ~70% being investment grade.

In its Q2 2017 Earnings Release & Supplemental Info as of July 27, 2017, DFT reported double digit normalized FFO per share and AFFO growth operating portfolio was 98% leased and commenced as measured by critical load (in megawatts, or "MW") and computer room square feet ("CRSF"), and 48% of the MW under development have been pre-leased. On June 9, the merger deal with Digital Realty was announced wherein it would become a wholly-owned subsidiary of DLR. Each share of common stock will be converted into 0.545 shares of DLR common stock. Recent articles break down the DLR & DFT merger and give 4 reasons dividend lovers should be cheering this data center mega-Deal.

^DLR+DFT Merger Announcement, June 9, 2017

Digital Realty is poised to be my new top holding & top recently added large-cap position both by cost basis in the portfolio and largest multi-tenant data center REIT position by cost basis & market value post-merger with DuPont Fabros. Currently, though, it is the 6th largest position by cost basis, 2nd largest new mid-cap addition by cost basis, and the 3rd DC REIT by market value. DLR is a leading global data center REIT that owns, acquires, develops and manages technology-related real estate. This blue-chip REIT is focused on providing data center, colocation and interconnection solutions for domestic and international tenants across a variety of industry verticals.

What excites me the most is its pending merger with DuPont Fabros Technology announced last June 9 which is supposed to close this 2nd half of 2017. According to DLR's August 2017 Company Overview, DLR manages 145 properties (90% owned) in 30+ metropolitan areas with 23 million rentable square feet giving them a market cap of $19B and an enterprise value of $28B. Post-merger they are expected to handle 157 properties in 33+ metropolitan areas in 12 countries with 37 million rentable square feet making its market cap grow to $25B and its EV to $35B.

The M&A is seen to be a highly strategic and complementary combination of the two data center REITs because it: (1) complements their footprint in top U.S. metro areas, (2) enhances ability to meet growing demand for hyper-scale and public cloud, (3) expands blue-chip customer base, (4) increases scale and reach, (5) produces cost efficiencies expected to yield $18M in annualized overhead synergies of $0.08 per share, and (6) enhances growth prospects going forward. The deal is financially accretive and prudently financed. Their combination would make DLR rank among the top 10 largest publicly-traded U.S REITs. The combined company will own 92% of its real estate based on NOI and would attain one of the industry's lowest general & administrative (G&A) cost margins of just 5%. The efficient cost structure would drive industry leading margins ~60%.

DLR alone continues to provide comprehensive product offerings on a global scale to 2,300+ customers forming their high-quality customer base and possesses an investment grade rating of BBB. Based on Q2 results, it continues to have healthy volumes of megawatts commissioned in major U.S. metro areas, healthy occupancy rates, robust demand outpacing supply in top-tier data center metro areas, a healthy backlog setting a solid foundation for future growth, a consistently improving quality of earnings, a well-laddered debt maturity schedule, and recent credit events bolstering the balance sheet. Most importantly, it executes consistently on its strategic vision in delivering current results and seeding future growth. For instance, it has beat consensus estimates on Q2 FFO and revenue which was also up ~10%y/y. They have also increased their dividend for 12 consecutive years with a compounded annual dividend growth rate of 12%.

Recent articles point out why DLR is a solid dividend payer, what could send DLR higher, why it's a cloud play with stability & growth potential, how investors could benefit from the merger, why Digital Realty made the right move by REIT expert Bill Stoller, and why DLR is part of REIT expert Brad Thomas's "FANG for REITs" or "DAVOS".

Finally, another reason to hold on to Digital Realty is the latest news of them setting a $1B data center in Dallas area. They plan to develop the billion-dollar project in three phases on a 47.5-acre tract in Garland, Texas. The entire term of the project is 22 or 23 years in three different phases that are each 15 years and can run succinctly or at different times. Digital Realty will receive a 40% tax abatement on property taxes for 7 years. It will also obtain access to market-based rates through Garland's locally owned & operated electricity provider. The $1B+ project will be broken up into 3 distinct $350 million phases, which will bring in excess of 150 megawatts of critical IT load. North Texas is considered to be the No. 2 data center market in the U.S.

^DLR August 2017 Company Overview

GDS is the smallest multi-tenant data center-focused holding by cost basis in my portfolio, smallest non-U.S. based/foreign holding, smallest micro-cap portfolio addition, and among my minor speculative positions in the information technology space. It is NOT a REIT but has its current core business within the multi-tenant data center industry just like DC REITs. GDS is the leading large-scale, high-performance carrier-neutral data center solution provider in China. It has #1 market position in 6 key markets with over 400 blue-chip customers representing the leading companies in China driving the technology revolution such Alibaba, Tencent, Baidu, Huawei and UCloud. GDS began as an IT service provider in China pioneering the provision of business and disaster recovery solutions for financial service institutions. It then expanded to developing and operating high performance data centers and setting industry standards for operational excellence.

Today, it has grown to become the leading vertically integrated provider of high performance data center and IT infrastructure services in China. As such, GDS offers a broad range of value-added services including colocation, managed hosting and managed cloud services. It also provides high power and efficiency, guaranteed up-time, a key market footprint, and rigorous operating standards. It's the first IT service provider in China to receive all four ISO & BS management system certifications. It too is the only data center service provider in China to have earned the Uptime Institute award for Management, Operations & Site Approval for multiple locations. It has a 16-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China.

This 2017, it has 6 new self-developed data centers under construction. Recently, GDS reported Q2 2017 earnings results wherein it grew total revenue +42.4% y/y, adjusted NOI +45.7% y/y, adjusted EBITDA +111.6% y/y, and adjusted EBITDA margin +29.7%. Net loss in Q2 2017 was lower compared with Q2 2016. Nonetheless, GDS continues to have strong sales growth momentum as total area committed increased by 8,228 sqm (+71.6% y/y) to 76,541 sqm, and bookings in 1H17 were worth over $75 mn in terms of annual recurring revenue. It also successfully renewed contracts with 0.3% quarterly churn rate, and continued converting sales backlog to revenue-generating space with area utilized increasing by 4,572 sqm (+32.1%) to 42,470 sqm. Sadly, there are no SA articles on GDS, just one pre-IPO.

^GDS 2nd Quarter Earnings Presentation

4. Diversified Utilities : +1

Brookfield Infrastructure Partners is a middle-tier holding, 4th largest new mid-cap addition by cost basis, the only globally diversified utility, and my 2nd largest utility stock position. BIP is one of the largest owners & operators of high-quality diverse global infrastructure networks which facilitate the movement and storage of energy, water, freight, passengers and data. Their strategy is to acquire high quality businesses on a value basis, actively manage operations and opportunistically sell assets to reinvest capital into the business.

^BIP August 2017 Investor Fact Sheet

This blue-chip has established a solid performance record, delivering compounded annual total returns of 15% since its inception in 2008. objective is to generate a long-term return of 12 -15% on equity and provide sustainable distributions for unitholders while targeting annual distribution growth of 5-9%. I expect more updates in their upcoming 2017 Brookfield Investor Day event on September 27, 2017.

^BIP August 2017 Corporate Profile

5. Engineering & Construction : +1

Quanta Services is the 2nd smallest new mid-cap addition, largest industrial stock by cost basis, and only other industrial holding besides GE. PWR is the leading integrated infrastructure solutions provider for the electric power, oil and gas, renewable energy and telecommunication industries. PWR is the #1 Specialty Contractor, #1 Utility Cotnractor, #1 Electrical Contractor, and #1 Pipeline Contractor in North America for 2016. It was ranked 325th in the 2015 Fortune 500 Ranking. Events this 2017 include the completion of the acquisition of Stronghold, Ltd. and Stronghold Specialty, Ltd., and the selection of Quanta Services selected by American Electric Power for the Wind Catcher Generation Tie Line (contract value for this project makes it the largest project award in Quanta's history), and selection by Enbridge Pipelines for Line 3 Replacement Program.

^PWR August/September 2017 Investor Presentation

^PWR Acquisition of Stronghold, July 21, 2017

6. Cloud/Enterprise Software : +3

Nutanix is my largest pure-play cloud enterprise software position by cost basis, 2nd largest (non-micro) small-cap addition by cost basis, and 3rd largest pure-growth non-dividend paying holding by market value. NTNX makes datacenter infrastructure invisible by delivering an Enterprise Cloud that enables IT to focus on the applications and services that power their business. The company has 2,813 employees, 7,051 worldwide customers, 125+ installed countries, an average repeat purchase of 4.1x initial purchase for customers more than 18 months with NTNX, a 90 net promoter score, and +55%y/y Billings growth in FY 2017. Nutanix leverages a hybrid delivery model to capitalize on public cloud advantages while retaining the security and control of private datacenters. The Nutanix Enterprise Cloud goes beyond hyperconverged infrastructure because integrates server, storage, virtualization and networking in a hyperconverged platform to run any workload, at any scale, while removing the complexity of legacy infrastructure. It could be deployed as a turnkey appliance or as software on leading servers.

NTNX Q4 FY17 Infographic

In their recent earnings report for Q4FY17, NTNX beat market consensus expectations by $0.05 for a Q4 EPS of -$0.33m, and by $8.05M for revenue of $226.1M which was higher +61.7% y/y. Billings was also higher 40%y/y at $289.2 million. Very recent SA articles this September view NTNX as an enterprise cloud potential with ongoing problems, and the recent post-Q4 results as a buying opportunity to go the distance with NTNX. Other SA authors revisited why this private cloud leader is ripe for a comeback and why Nutanix has been on more solid ground since its Q3 results.

^NTNX Q4 FY2017 Earnings Presentation

Salesforce is my 2nd largest new (non-mega) large-cap stock addition by cost basis, 2nd largest pure-play cloud enterprise software position by cost basis, 2nd largest pure-growth non-dividend paying holding by market value, and boosts a 1Yr+ unrealized gain of 40% recently. CRM is a provider of enterprise software delivered through the cloud with a focus on customer relationship management (CRM) in industries such as the cloud, mobile, social, Internet of Things and artificial intelligence technologies. Its service offerings are configured and integrated with other platforms and enterprise applications which it delivers via Internet browsers and on mobile devices. Its Customer Success Platform is a portfolio of service offerings providing sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, IoT integration, collaborative productivity tools and its professional cloud services. Its cloud service offerings include Sales Cloud, Service Cloud, Marketing Cloud, Commerce Cloud, Community Cloud, Analytics Cloud, Salesforce Quip and Salesforce Platform. It also encourages third parties to develop additional functionality and new apps that run on its platform and other developer tools.

CRM's recent earnings release for the 2nd Quarter 2017 showed that it has surpassed the $10B run rate milestone which is faster than any enterprise software company in history. It raised its FY18 revenue guidance $10.35B to $10.40B (up 23% to 24% y/y). It also grew Q2 revenue of $2.56B (up 26% y/y), operating cash flow of $331M (up 32% y/y), deferred revenue of $4.82B up 26% y/y), and unbilled deferred revenue of ~$10.4B (up 30%y/y).

^Q2 FY 2018 Results, August 22, 2017

Box is my smallest holdings in the information technology sector by market value, the smallest (non-micro) small-cap holding & new portfolio addition, and one of my minor speculative positions in the cloud market. BOX markets itself as the cloud content management company that empowers enterprises to revolutionize how they work by securely connecting their people, information and applications. It provides an enterprise content platform that enables organizations to securely manage enterprise content while allowing easy, secure access and sharing of this content from anywhere, on any device. The company's Software-as-a-Service (NASDAQ:SAAS) cloud-based platform, users can collaborate on content both internally and with external parties, automate content-driven business processes, develop custom applications, and implement data protection, security and compliance features to comply with internal policies and industry regulations. It enables people to securely view, share and collaborate on content, across multiple file formats and media types, integrates with enterprise business applications, and is compatible with multiple application environments, operating systems and devices.

Founded in 2005, Box now powers more than 71,000 businesses globally, including AstraZeneca, General Electric, P&G, and The GAP. Box is headquartered in Redwood City, CA, with offices across the United States, Europe and Asia. Upcoming event is the Box 2017 Financial Analyst Day on October 12.

^BOX 2nd Quarter FY2018 Earnings Presentation, August 30, 2017

7. Diversified e-Commerce : +1

Alibaba Group now occupies the 3rd largest holding by cost basis, the largest in the information technology sector by cost basis, the largest non-U.S./foreign position, the largest mega-cap by cost basis and only mega-cap addition recently, the largest pure-growth non-dividend paying holding by market value, and my only stock right now directly in the rapidly growing e-commerce market. BABA operates as an online and mobile commerce company. It provides online and mobile marketplaces in retail and wholesale trade, as well as cloud computing and other services. Its major businesses include Taobao Marketplace, which is a China's online shopping destination;, a China's third-party platform for brands and retailers;, a global wholesale platform for small businesses; Alibaba Cloud Computing (AliYun), a developer of platforms for cloud computing and data management; and Alipay, which is a China's online and mobile payment solution.

^BABA June Quarter 2017 Results, August 17, 2017

8. Memory & Storage Manufacturer : +1

Micron Technology is a new middle-tier position, smallest out of 3 new (non-mega) large-cap stock additions by cost basis, and the 2nd semiconductor industry position after Intel in the portfolio. MU is a leader in innovative memory solutions with its global brands Micron, Crucial and Ballistix. It is the only company designs and manufactures today’s major memory and storage technologies: DRAM, NAND, NOR and 3D XPoint™ memory. This portfolio of memory technologies: dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutions. Its business segments include Compute and Networking Business Unit (CNBU), which includes memory products sold into compute, networking, graphics and cloud server markets; Mobile Business Unit (MBU), which includes memory products sold into smartphone, tablet and other mobile-device markets; Storage Business Unit (SBU), which includes memory products sold into enterprise, client, cloud and removable storage markets, and SBU also includes products sold to Intel through its Intel/Micron Flash Technology (IMFT) joint venture, and Embedded Business Unit (EBU), which includes memory products sold into automotive, industrial, connected home and consumer electronics markets. It had FY2016 net sales of $12.4B and 30,000+ worldwide. It is set to announce 4th Quarter 2017 Financial Results on September 26.

^MU 3rd Quarter 2017 Financial Results, June 29, 2017

9. Alternative Asset Management : +1

Blackstone Group is currently my 4th largest holding by cost basis, largest out of 3 new (non-mega) large-cap stock additions by cost basis, largest recent financial sector addition & new largest financial sector position both by cost basis, new 2nd highest yielder moving forward, and the only stock in the alternative asset management category in the portfolio. BX is one of the world’s leading investment firms with 30 years of experience and more than 2,200 employees worldwide. This global alternative asset management businesses include investment vehicles focused on private equity, real estate, hedge fund solutions, credit, infrastructure and multi-asset class strategies. The Private Equity segment consists of flagship corporate private equity funds, Blackstone Capital Partners funds, sector-focused corporate private equity funds, including energy-focused funds, Blackstone Energy Partners funds, and core private equity fund, Blackstone Core Equity Partners. The Real Estate segment includes management of core real estate fund and non-exchange traded restate investment trusts. The Hedge Fund Solutions segment comprises of Blackstone Alternative Asset Management, which manages hedge funds and includes Indian-focused and Asian-focused closed-end mutual funds. The Credit segment includes GSO Capital Partners LP, which manages credit-oriented funds.

BX has $371B AUM (assets under management) as of Q217/June 30, 2017 broken down into: $104B real estate (being one of the world’s largest real estate investors with a dominant platform in both equity and debt); $100B private equity (being a global leader in traditional buyout, growth equity, special situations and secondary investing); $94.5B credit (being a leading manager with a diverse credit portfolio spanning CLOs, leveraged lending, senior debt, mezzanine and rescue financing); and $72.5B hedge fund solutions (being one of the world’s largest discretionary hedge fund investor). The Chairman's Letter on the 10th Anniversary of BX's IPO boasts that it is one of the largest owners of real estate globally and have built a substantial real estate credit platform. BX's portfolio of 81 companies in private equity employs more than half a million people worldwide. It is the largest allocator to hedge funds in the industry – double our nearest competitor. Their credit platform is a clear stand-out in its space as they are the largest global CLO issuer for four years running. They have also broadened their investor base through Private Wealth Solutions – 15-20% of AUM now comes from retail channels. Their Tactical Opportunities and Strategic Partners businesses are two of the fastest-growing major alternative strategies anywhere. And they are just getting started on their next significant opportunity in infrastructure. 

BX reported strong Q2 results, which also marked the end of its first decade as a public company. The firm remains in top form – revenue, earnings, and distributions all saw double-digit growth versus the prior year, and AUM reached a new all-time high of $371B, having grown fourfold since the IPO. For the 2nd quarter, GAAP Net Income was $745M, and $1.8B YTD; Economic Net Income (ENI) was $705M ($0.59/unit) up 36%y/y; Distributable Earnings (DE) was $781M ($0.63/unit) up 58%y/y; Fee Related Earnings (FRE) was $311M up 33% year-over-year; total assets under management (AUM) grew to a record $371.1B up 4%y/y through a combination of continued fundraising, organic platform expansion and fund appreciation.  

^BX 2nd Quarter 2017 Earnings, July 20, 2017

10. Specialty Pharmaceutical : +1

Antares Pharma is one of my few minor speculative positions both by cost basis & market value, my smallest holding in the healthcare sector by market value, and one of three micro-cap stock additions in the portfolio. ATRS is a specialty pharmaceutical company that focuses on the development and commercialization of self-administered parenteral pharmaceutical products and technologies. Its activities include the development of injection devices and injection based pharmaceutical products as well as transdermal gel products. Founded in 1978 and listed on NASDAQ in 2012, it has over 75 years of combined development experience in-house as well as being a turn-key specialty pharmaceutical partner with expertise supporting all aspects of drug and device development.

Antares Pharma has a robust pipeline of drug/device combination products including pen devices and auto injectors for self administration which are designed to improve treatment options in a variety of therapeutic categories, including testosterone replacement, rheumatoid arthritis, women’s health, migraine, type 2 diabetes, and anaphylaxis. Class leading device technology platforms, such as Vibex, QuickShot, and pen device platforms, combined with safe and effective therapies have the potential to improve both patient outcomes and convenience with reliable, accurate, patient-friendly treatment options.

ATRS continues to build its commercial portfolio, with four products approved by the FDA in less than 5 years, focusing on innovative, patient-focused therapeutic options. Their marketed products include Otrexup, Sumatriptan autoinjector, Zoma-Jet and Gelnique, and are built on their proven auto injector and pen device platforms. In addition to their core device platforms, their internal development team specializes in creating custom designed devices that fit the device to the patient and therapeutic need.

^ATRS Q2 2017 Operating & Financial Results, August 8, 2017

2017 Portfolio Realized Gains/Losses (as of 09/01/17)

+60.25% +$30,973.34 = Net Gain
Date Stock Shares Gain % Gain $ Loss % Loss $
05/30 YHOO 100 224.29% 3,503.15

06/09 CLSN 400

84.93% 446.63
" BLPH 600

35.74% 437.82
" BIOA 500

50.49% 1,065.89
" APPS 1000

19.51% 237.67
" FIT 50
63.55% 456.48
" TWTR 100
45.67% 1,470.45
" VALSX 18.947 60.52% 234.67

06/19 ATRS 500 250.90% 1,026.07

" DAL 100 7.68% 374.59

" EBAY 100 299.12% 2,600.64
" PYPL 100 292.70% 3,935.41
" SLM 100 48.34% 346.08
06/26 CARA 100 361.13% 1,953.94
" CCE 100 68.81% 1,660.96
" SIRI 500 401.79% 2,157.91
06/27 AMD 200
2.20% 61.94
06/30 CARA 100 227.78% 1,262.72
07/03 SNSR 40 14.58% 90.66
" RUN 300 5.74% 115.60
07/05 SPY 100 109.15% 12,662.64
07/10 PETX 200 41.96% 422.11
" CPE 100 18.71% 236.92
08/31 PG 100 49.49% 3,039.99

+35,387.14 + -4,413.80

Current Portfolio Detailed Summary

I plan to hold on to most of these stocks for the long-term.

Portfolio 09.01.2017 ^All data available as of September 1, 2017. Click to enlarge.

Anticipated Future Portfolio

Anticipated Future Portfolio - Highest to Lowest Cost Basis (Left to Right, Top-Down) ^Anticipated Future Portfolio - Highest to Lowest Cost Basis (Left to Right, Top-Down). Made by Author.

I plan to initiate a position with Chinese social media, online advertising & mobile gaming giant Tencent Holdings Ltd ADR [OTCPK: OTCPK:TCEHY] soon. Hence, the adjusted portfolio visual above, which also takes into consideration the exchange of my 100 DFT shares to ~54.5 DLR shares this 2nd half of 2017 with the upcoming merger & acquisition of DuPont Fabros Technology by Digital Realty Trust.

A lot of stocks are on my radar for possible future position initiations and replacement of existing positions. They include four Global X Thematic ETFs: Global X Robotics & Artificial Intelligence Thematic ETF [BOTZ], Global X Social Media Index ETF [SOCL], Global X Lithium ETF [LIT], and Global X Internet of Things Thematic ETF [SNSR] (again). I have also been eyeing three data center REITs not yet in my portfolio: Equinix [EQIX], CoreSite Realty [COR], and QTS Realty Trust [QTS]. As for other Chinese stocks, I find [JD] as another attractive bet aside from Alibaba [BABA] and Tencent [OTCPK:TCEHY]. Stocks that were previously sold but peak my interest again are PayPal [PYPL], eBay [EBAY], Sunrun [RUN], Advanced Micro Devices [AMD], and Cara Therapeutics [CARA]. I have also been interested in Activision Blizzard [ATVI], Electronic Arts [EA], Adobe Systems [ADBE], and AbbVie [ABBV]. Finally, I may also increase certain existing positions, possibly NextEra Energy Partners [NEP], Pattern Energy [PEGI], Brookfield Renewable Partners [BEP], Brookfield Infrastructure Partners [BIP], Alibaba [BABA] and GDS Holdings [GDS].

Thanks for reading. I look forward to your comments, insights and recommendations about my stock investing decisions and choices. Happy investing!


Additional disclosure: All information and data presented pertaining to the stocks and companies (excluding my own commentaries, opinions & tables pertaining to my portfolio holdings, of course) are not my own. Sources of the information have been linked throughout the article. I do not belong to nor represent any of the companies mentioned in this article. I apologize for any possible misinformation. All raw images are not mine and have been sourced via Google Images, except for the collage graphics of company logos which were made by the author. Please contact me for any SeekingAlpha newbie mistakes.