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Weekly Update: Huge Buying Spree, One More Huuuge Round To Go, And Another Huuuuuge Online Event To Cap The Past Week

Summary

Put my 2nd batch of relatively huge newly infused cash to work. Increased stakes in JD.com, Blackstone Group LP and InfraCap MLP ETF.

Initiated new positions in Macquarie Infrastructure, MasTec, Grupo Aeroportuario del Pacífico SAB de CV, and Global X Robotics & Artificial Intelligence ETF.

Portfolio's TAV is up 0.99% week-over-week bolstered mainly by newbie positions.

Prospective buys are now tabulated below. One or two to be initiated this coming week. A sell, two or three might also be coming this week or next.

Euphoric about the recent Single's Day event and how it would impact my top holdings JD.com and Alibaba Group.

^Portfolio Logo Collage by Market Value Highest to Lowest: left to right, then top to bottom.

My portfolio's Total Account Value [TAV] was up +$2,036.96 or almost 1 percent (+0.99%) week-over-week to $207,253.50. But before I go into detail about it, I delve into some positive news which capped last week: 2017 Single's Day!

The 11.11 e-commerce event countered the seemingly negative news of the possible delay in the passage of the highly anticipated tax reform in the U.S.: "Wall Street Breakfast: Worries Over Tax Reform Delays," "Senate presents tax bill outline; stocks 'sold the news' earlier," "Stocks sink as Senate reportedly will delay corporate tax cut," and "WaPo: Senate GOP considering one-year delay for corporate tax cut." 

Also in the news last week was U.S. President Donald Trump's visit to China: Trump stirs up U.S.-China trade. That's where the title of this blog post draws inspiration from because last week truly was a HUUUUUUUGE week for politics, commerce, and the stock market, all of which impacted and will impact my portfolio one way or another.


Single's Day Euphoria

To say this year's 11.11 last Saturday was HUUUUUGE or EPIC is an understatement. Alibaba's (BABA) and JD.com's (JD) transaction numbers and growth (gross merchandise volume or GMV) underscore why.

Alibaba smashes its Single's Day record once again as sales cross $25 billion

Alibaba sells $25B worth of stuff in 1 day!

Almost 1.5 billion shoppers parted with their money on China's Single's Day, a shopping day that dwarfs sales on Black Friday and Cyber Monday.

The Chinese e-commerce giant broke records and calculated $25.3 billion in sales generated from 1.48 billion shoppers via Alipay on its annual Singles' Day global shopping festival on Nov. 11, or 11/11.

Once a celebration for China’s lonely hearts, Singles’ Day has become an annual 24-hour buying frenzy that exceeds the combined sales for Black Friday and Cyber Monday in the United States, and acts as a barometer for China’s consumers.

Source: Alibaba sells $25B worth of stuff in 1 day


#Double11 2017: As of 24:00, total GMV has exceeded RMB168.2 billion - more than USD25.3 billion. Mobile GMV: 90%”

https://twitter.com/AlibabaGroup/status/929382433471979520/photo/1

Highlights from the sale

  • First delivery arrived 12 minutes and 18 seconds after midnight
  • Total mobile GMV settled through Alipay was approximately 90 percent of the total GMV, compared to 82 percent last year
  • Alipay processed 1.48 billion payment transactions, up 41 percent from 2016, and processed 256,000 transactions per second at peak
  • Cainaio Network processed 812 million total delivery orders
  • By 11.30pm China time on November 11, 167 merchants generated more than 100 million RMB ($15.1 million) in sales
  • Top countries selling to China include Japan, US, Australia, Germany, and South Korea
  • Top 5 imported brands bought by Chinese consumers by GMV were Swisse, Aptamil (爱他美), Kao / Merries (花王/妙而舒), Moony and Bio Island.
  • Top 5 countries/regions buying cross-border from China by GMV were Russia, Hong Kong, United States, Taiwan and Australia.
  • Top 5 export product categories from China by GMV were mobile phones, wool coats, knitted sweaters, dresses, and sweaters.

Source: $25 billion in 24 hours: Alibaba creates history. Highlights from Double 11 at Shanghai

Source: Alibaba records RMB 168.2 Billion in Singles' Day Sales - TechNode 

Infographic: 2017 11.11 Global Shopping Festival By the Numbers | Alizila.com

Alibaba records RMB 168.2 Billion in Singles’ Day Sales

“While this year’s sale day smashed last year’s records, now the new goal for Alibaba is globalization. This year’s sales event showed clearly how Alibaba’s shopping festival is gradually converging China and the rest of the world. Alibaba reported that 225 countries and regions with completed transactions.”

Source: Alibaba records RMB 168.2 Billion in Singles' Day Sales - TechNode

JD.com Singles Day Volume Jumps +50% to $19.1 Billion!

Rival Chinese e-commerce company JD.com Inc reported that its Singles' Day transaction volume hit about 127.1B yuan or $19.1 billion, up more than 50% from 2016. JD's sale ran from Nov. 1 to Nov. 11, with the final day making up by far the largest spike in sales. JD started its sales event on Nov. 1, to reduce delivery bottlenecks and give users more time to make their purchasing decisions.

Source: JD.com, Inc.

China's second largest e-commerce firm just showed Alibaba has serious competition

“Total transaction volume on JD for the #SinglesDay period: RMB 127.1 billion $JD #China #ecommerce

Source: https://twitter.com/JD_Corporate/status/929390165654679552/photo/1


Hoping for good stock price reactions in the coming week or weeks for these two Chinese e-Commerce juggernauts which currently are in my top 5 holdings by cost basis and in my top 10 by latest market value.

Holdings Weekly Value Change

Out of the 38 holdings remaining at the end of Nov. 10, 2017, 24 holdings gained more in value week-over-week, whereas 14 positions partially offset the former with their loss in value.

Furthermore, the portfolio's cost basis increased last week by $9,928.60 (7.58%) from $130,929.67 two weeks ago to $140,858.27 due to the 2nd batch of the newly infused capital now being put to work. I did not indicate the weekly change in value for the four new holdings due to being just introduced in the portfolio last week. Thus, the overall unrealized gain percentage of +47.66% two weeks ago is not directly comparable to last week's +45.77%.

What could be compared though, aside from the total account value, is the unrealized gain [UG] amount $ and its percentage difference. Two weeks ago the UG $ was +$62,397.53. That grew by +$2,070.30 WoW to +$64,467.83 by the end of last week. That's 3.32% WoW growth in UG $, excluding the minor loss in closing a position last week and the distribution received from an LP holding as well.

Newbie holdings (those initiated less than 5 months ago [22] and two [2] less than 2 years ago) led most of the gains the past week. Collectively, newbie's net unrealized gain jumped by +$1,661 or +17.02% over the previous UG gain of +$9,757.91 (+11.01%) to end last week with +$11,418.91 (+11.59%). Newbie net UG gain of +11.59% is not comparable to +11.01% WoW because the cost basis was increased substantially.

On the other hand, incumbent holdings (those initiated more than 6 years ago and are still held in the portfolio [14] ) also moved slightly upward adding +409.30 or +0.78% more to their previous net paper gain of +$52,639.62 (+124.42%). Hence, incumbent positions aggregately ended the past week with a net UG of +53,048.92 or +125.39%.

Weekly Top Leaders and Laggards

Top Leaders Top Laggards
GDS +17.4% PEGI -7.90%
DIS +6.2% BAC -4.70%
NTNX +5.6% MIC -3.56%
TCEHY +5.5% PAC -3.53%
JD +4.0% MTZ -3.07%
HPJ +3.9% BX -2.3%
XXII +3.5% BMY -2.2%
BIP +2.5% HASI -2.1%
T "

CRM +2.5%
MU +2.4%
MDLZ "
PEP +2.3%
KHC +2.2%

Leading Chinese data center operator GDS Holdings Ltd (GDS) once again jumped higher. This time it was by +17.4% week-over-week making my paper gain almost double in just under four months. My only regret is I hoped I went through with my former plan to add more before when it was still below 10, but I am content with the current gains it has produced so far.

The Walt Disney Company (DIS) also rose +6.2% WoW due to more details on its planned direct-to-consumer streaming platform for ESPN next year and for its core Disney content, namely from Disney, Pixar, Marvel and LucasFilm/StarWars, the year after. Disney also jumped early on in the week, prior to its earnings release, due to news reports surfacing about recent talks it had with Fox to buy most of the latter's entertainment content, excluding news & pubic affairs assets. Even though the report stated that the talks took place over the course of several weeks ago and allegedly have gone quiet since, the news sparked talks of possible M&A in the media industry, not only with the Fox assets. With the news surfacing, it could be possible talks between the Disney and Fox could reignite. These two pieces of news countered the fact that Disney had a terrible September 2017 quarter this year with almost all segments (not just ESPN). Excluding the Parks & Resorts segment, all segments saw revenues decline YoY during the quarter. Given the recent updates on Disney, I am considering moving it back to a SWAN or "Sleep Well At Night" position, at least relatively SWAN, and remove it from the reduce or close holdings watchlist in the portfolio.

Nutanix (NTNX) keeps rocking on as well by +5.6% last week. Two of my Chinese internet/e-commerce stocks have also performed well WoW: Tencent Holding (OTCPK:TCEHY) +5.5% and JD.com (JD) +4%. Speculative growth bets in the lithium-battery market Highpower International (HPJ) and in the nicotine-reduction & cannabis markets 22nd Century Group (XXII) also inched up relatively nice last week as well by +3.9% and +3.5%, respectively.

Newbie holdings Brookfield Infrastructure Partners (BIP), Salesforce.com (CRM), and Micron Technology (MU) as well as incumbent positions AT&T (T), PepsiCo (PEP), Mondelez International (MDLZ), and Kraft Heinz (KHC) contributed to the paper gains week-over-week by more than +2% but less than +3%.
Pattern Energy Group Inc (PEGI) was my top laggard last week declining almost -8% week-over-week due to downbeat Q3 earnings results. Bank of America (BAC) was the 2nd worst performer WoW by -4.70%. Three of my newly initiated positions last Monday were all down by more than -3% WoW: Macquarie Infrastructure (MIC) -3.56%, Grupo Aeroportuario del Pacífico SAB de CV (PAC) -3.53%, and MasTec Inc (MTZ) -3.07%. Other significant downward movements were made by Blackstone Group LP (BX), Bristol-Myers Squibb (BMY), and Hannon Armstrong Sustainable Infrastructure Capital (HASI), all with WoW losses of more than -2% but less than -3%.

Position Changes Last Week

> MAJOR BUYING SPREE SUMMARY:

Position Increases New Initiated Positions
+100 AMZA +40 BOTZ
+40 BX +40 MIC
+50 JD +20 PAC

+45 MTZ

> LATER ON IN THE WEEK:

-60 MOMO

Position Increases: 3 Holdings

InfraCap MLP ETF (NYSEARCA:AMZA)

I already briefed about this actively managed high-yielding midstream energy ETF in my weekly update two weeks ago.

Here is their latest fund fact sheet.

Latest SA coverage includes:

  • BX +40 shares:

Blackstone Group LP (NYSE:BX)

I already briefed about this distribution-yielding alternative asset manager in my first blog post.

Here is their recent 3rd Quarter Results Press Release and Presentation

Recent SA articles include:

  •  JD +50 shares

JD.com (NASDAQ:JD)

I briefly mentioned initiating a position in this undervalued Chinese large-cap growth internet retailer in my second SeekingAlpha blog post a few months ago.

JD.com is an online direct sales company. JD engages in the sale of electronics and home appliance products and general merchandise products including audio, video products and books sourced from manufacturers, distributors and publishers in China on the internet through its website. It also offers an online marketplace that enables third-party sellers to sell their products to customers on its website. JD operates through the provision of a single class of services for accelerating and improving the delivery of its products over the internet. It also offers online and in-person payment options and customer services.

Being China’s largest online retailer, the biggest overall Chinese retailer, the biggest Chinese Internet company by revenue, and a member of the Fortune Global 500, JD.com operates more than 256 warehouses with an aggregate gross floor area more than four million square meters in over 50 cities, a total of 6,906 delivery stations and pickup stations with approximately at least 120,000 merchants on its online marketplace.

Information about their performance during their recent Singles' Day period has already by mentioned above. Here's an additional article "Walmart Partner JD.com Increase Singles' Day Sales by 50%."

Here are SA articles on JD.com:

Here is their recent 2nd Quarter Results last August. Note, though, that JD is set to announce its Q3 2017 Results today, as of this posting, Nov 13 before market open.

(!) UPDATE (!)

UPDATE: JD.com Announced Third Quarter 2017 Results and JD Beat EPADS by $0.13, Beat on revenue by $30M (+37.9% Y/Y)

Here's JD.com 3Q2017 Financial and Operational Highlights Presentation

New Position Initiations: 4 Holdings

Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ)

BOTZ seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence/AI, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles.

The fund objective of BOTZ is to provide investment results that correspond generally to the price and yield performance - before fees and expenses - of the Indxx Global Robotics & Artificial Intelligence Thematic Index. 

The fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index is designed to provide exposure to exchange-listed companies in developed markets that are involved in the development of robotics and/or artificial intelligence as defined by Indxx- the provider of the underlying index.

*All data as of 11/10/2017:

Market Cap Concentration  Large Cap
Investment Style Focus Growth
ETF Total Assets $1.22B
Inception Sep.12.2016
Total Holdings 36
Expense Ratio 0.68%
Underlying Index Indxx Global Robotics & Artificial Intelligence Thematic Index
Weighting Scheme Market Value
Distribution Frequency Annually
Distribution Yield TTM 0.04%
Return on Equity 13.00%
Price-to-Earnings 30.41
Price-to-Book Value 3.81
Leveraged and Actively Managed No
Rebalance Yearly
Fund Company Global X Funds
Website https://www.globalxfunds.com/funds/botz/

Top 10 Holdings (As of 11/10/17)

Net Assets % Top 10 Asset Holdings
8.45% Nvidia
8.21% Keyence
7.81% Fanuc
7.58% Intuitive Surgical
7.32% Mitsubishi Electric Corp
7.26% Yaskawa Electric
6.19% ABB Ltd
5.25% Omron
5.21% SMC
4.95% Kuka AG

According to their website, here's why one should own BOTZ:

High Growth Potential : BOTZ enables investors to access high growth potential through companies involved in the ideation, design, creation and application of programmable automated devices.

Unconstrained Approach : BOTZ's composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.

ETF Efficiency : In a single trade, BOTZ delivers access to dozens of companies with high exposure to the robotics and AI theme.

Recent SA coverage on BOTZ is found in Own The Bots With These 2 ETFs.

Here is their latest fund fact sheet

  • MIC +40 shares:

Macquarie Infrastructure Corporation (NYSE:MIC)

Macquarie Infrastructure Corp is a dividend-yielding mid-cap multi-industrial holding company which owns, operates and invests in a portfolio of infrastructure businesses that provide services, such as bulk liquid terminalling & handling services, aircraft fueling, contracted power generation, and utility gas services. 

MIC's operations consist of [1] the largest network of fixed-base operations (FBOs) in the United States at 69 airports, [2] the largest bulk storage terminal business in the U.S., [3] a gas production and distribution business, and [4] a controlling interest in two district energy businesses. The corollary subsidiaries are [1] Atlantic Aviation, [2] International-Matex Tank Terminals (IMTT), [3] MIC Hawaii, and [4] Contracted Power & Energy.

The recent SA articles on MIC are Macquarie Infrastructure Corp.: Overlooked And Complicated? Yes. Already A 50-Bagger? Yes and Macquarie Infrastructure: Investment Grade Balance Sheet, 8% Dividend Yield, Trading At 11x FCF.

Here is their recent 3rd Quarter Results Call Supplemental Materials

  • PAC +20 shares:

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC)

Grupo Aeroportuario del Pacífico, also known as GAP, is a dividend-yielding mid-cap Mexican airport operator. GAP holds concessions to operate, maintain and develop approximately 12 airports, which are located in the western states of Mexico (including major Mexican cities: Guadalajara & Tijuana, and two important tourist destinations: Los Cabos & Puerto Vallarta) as well as the Montego Bay airport in Jamaica.

GAP/PAC is the second largest airport services company by passenger traffic in Mexico. It serves approximately 27 million passengers annually. Its airports accounted for 25% of Mexico’s told passenger traffic in 2016 and 75% of Jamaica’s. As Mexico’s largest private airport operator, it grabbed 1.7% market share in 2016 while operating five of the ten busiest airports in the country. 85% of the its total outstanding shares are trade publicly, both domestically and international. The remaining 15% are held by a strategic partner: AMP (Aeropuertos Mexicanos del Pacífico).

The latest SA article is Grupo Aeroportuario Del Pacifico - Monopoly Business Taking Off Amid Secular Growth Tailwinds.

Here is their November 2017 Corporate Presentation:

  • MTZ +45 shares:

MasTec, Inc (NYSE:MTZ)

MasTec is a non-dividend paying small-cap engineering & construction company. MTZ is a leading national infrastructure construction company operating mainly throughout the U.S across a range of industries. MTZ's activities include the building, installation, maintenance and upgrade of energy, communication and utility infrastructure, including but not limited to: electrical utility transmission and distribution, wind farms, solar farms, other renewable energy, natural gas and petroleum pipeline infrastructure, wireless, wireline, satellite communication, industrial infrastructure and water and sewer systems.

MasTec’s customers are in the following industries: utilities (including wind farms, solar farms and other renewable energy, natural gas gathering systems and pipeline infrastructure), communications (including wired and wireless telephony and satellite television) and government (including water, sewer and other utility and communications work on military bases).

Here's their November Corporate Presentation:

Position Closed

  • MOMO -60 shares: I decided to close my position in this high-growth, but now seemingly volatile speculative Chinese social media company. There are better and relatively safer growth stocks I prefer to get into right now, but I am keeping Momo on my radar still.

Newbie Holdings Total Unrealized Gain/Loss

Top Gain $ Bottom G/L $ Top Gain % Bottom G/L %
CRM +1,838.05 PEGI -649.90 GDS +93.11% PEGI -13.45%
GDS +1,817.73 XXII -244.95 CRM +53.68% XXII -10.63%
NTNX +1,760.48 BX -149.89 BOX +46.54% MIC -3.56%
BOX +1,329.40 MIC -97.75 NTNX +43.86% PAC -3.53%
MU +1,193.05 JD -89.35 MU +36.32% MTZ -3.07%
DLR +1,184.63 PAC -67.35 TCEHY +20.54% BX -2.83%
TCEHY +849.45 MTZ -61.20 PYPL +15.65% HASI -0.97%
CONE +756.08 HASI -46.00 DLR +13.96% JD -0.89%
BABA +596.90 BOTZ +12.40 CONE +10.39% AMZA +0.69%
PYPL +500.55 AMZA +17.10 PWR +8.94% BOTZ +1.31%
BIP +300.65 HPJ +154.73 BABA +8.70% HPJ +2.98%
PWR +294.05 BEP +220.05 BIP +7.43% BEP +6.91%

  • Top-tier newbie holdings: 9

(≥ +$500 AND ≥ +10% paper gain)

CRM, GDS, NTNX, BOX, MU, DLR, TCEHY, and CONE are now accompanied by PYPL.

  • Second-tier newbie holdings: 4

(< +$500 and/or < +10%, BUT > +$200 AND > +5% paper gain)

BABA, BIP, PWR and BEP

  • Borderline newbie holdings: 9

(≤ +$200 and/or ≤ +5% paper gain, BUT ≥ -$200 and/or ≥ -5% paper loss)

HPJ, BOTZ, and AMZA are in the green zone; whereas, HASI, MTZ, PAC, JD, MIC, and BX are in the red zone.

  • Bottom-tier newbie holdings: 2 

(< -$200 AND < -5% paper loss)

PEGI and XXII, simply put, are currently my worst newbie holdings.

Dividends Received for November

Holding Div Amount Type
T $49 Qualifiied Dividend
BMY $39 Qualifiied Dividend
BX $52.80 Cash Dividend
Nov Total Div $140.80

The Feb-May-Aug-Nov dividend paying period is my weakest one so far in the portfolio. Luckily, recent holding additions and prospective position increases and/or initiations would boost the dividend I receive in these months in the years to come.

Future November Dividend Additions:

  • MIC (adding more)
  • PAC (adding more)
  • NEP (if/when re-opened)
  • other not yet decided

Holdings September Quarter Earnings Results

Earnings Released Before This Week:

Stock FinQtr EPS Revenue Date BMO/AMC
PEP Q3 2017 Beat by 0.04 Miss by $70M Oct. 4 BMO
BAC " Beat by 0.03 Miss by $140M Oct.13 BMO
BX " Beat by 0.14 Beat by $350M Oct.19 BMO
PYPL " Beat by 0.03 Beat by $60M " AMC
GE " Can't Compare Beat by $910M Oct. 20 BMO
T " Miss by 0.01 Miss by $450M Oct. 24 AMC
KO " Beat by 0.01 Beat by $240M Oct. 25 BMO
DLR " Beat by 0.03 Beat by $12.5M " AMC
BMY " Miss by 0.02 Beat by $50M Oct. 26 BMO
NEP " Miss by 0.36 Miss by $67.8M " "
MSFT Q1 2018 Beat by 0.12 Beat by $980M " AMC
INTC Q3 2017 Beat by 0.21 Beat by $420M " "
PAC " No Comparison No Comparison " "
CONE " Beat by 0.03 Miss by $1.61M Oct. 30 AMC
MDLZ " Beat by 0.03 Beat by $80M " "
PFE " Beat by 0.02 In-line Oct. 31 BMO
BEP " Miss by 0.03 Miss by $21.9M Nov. 1 BMO
HASI " Miss by 0.02 Beat by $3.52M " AMC
KHC " In-line Miss " "
MIC " Miss by $0.07 Beat by $5.48M " "
BABA Q2 2018 Beat by 0.26 Beat by $440M Nov. 2 BMO
PWR Q3 2017 Beat by 0.02 Beat by $290M " "
MTZ " Beat by $0.08 Beat by $310M " AMC
BIP " Beat Beat by $161M Nov. 3 BMO

Earnings Released Last Week:

Stock FinQtr EPS/FFO Revenue Date BMO/AMC
GDS Q3 2017 Miss by 0.01 Beat by $5.27M Nov. 9 BMO
PEGI " Miss by 0.21 Miss by $14.93M " "
DIS Q4 2017 Miss by 0.08 Miss by $560M " AMC
XXII Q3 2017 Miss by 0.01 Beat by $0.53M " "

Upcoming Earnings Releases:

Holding Financial Quarter Date Before/After Market
JD Q3 2017 Nov. 13 BMO
HPJ " Nov. 14 BMO
OTCPK:TCEHY Q3 2017 Nov. 15 BMO
CSCO Q1 2018 " AMC
CRM Q3 2018 Nov. 21 AMC
BOX Q3 2018 Nov. 29 AMC
NTNX Q1 2018 Nov. 30 AMC
ORCLT Q2 2018 Dec. 14 AMC
MUT Q1 2018 Dec. 21 AMC

^Earnings: this week in BOLD, Italics next week, and afterwards in normal font.

TNot yet official; Tentative date gathered by Wall Street Horizon callers.


CURRENT ACTIONS Towards HOLDINGS

> Sure SWAN/Long Term Hold Action: 31 / 38

What I deem as my "Sleep Well At Night" holdings for now make up the majority of my portfolio with 18 growth yielders and 13 pure growth plays.

  • Yield and Growth: 18 / 31
DLR CONE PEP BX MSFT PEGI* HASI* INTC BIP
BEP MIC BMY AMZA ORCL BAC PAC CSCO PFE

*Considering REDUCING my stake in PEGI and/or HASI BUT STAY LONG in the REMAINING SHARES.

  • Growth Only: 13 / 31
JD BABA HPJ OTCPK:TCEHY NTNX CRM PWR
MU PYPL BOX MTZ GDS BOTZ

> Watchlist for Possible Reduction or Removal: 7 / 38

  • Yield and Growth: 6 / 7
KHC DIS* T*
KO MDLZ* GE

*Considering moving MDLZ, DIS, and T back to the SWAN/Long Term HOLD action positions.

  • Growth Only: 1 / 7
XXII

*MOMO: recently closed position.


UPCOMING PURCHASES

Prospective Buys in Q4 2017 and Q1 2018:

> Existing position increases and/or former position re-introduction:

  • Yield and Growth: 6 Candidates
MIC AMZA PAC PEGI NEP UNIT

*in Bold and Italics: most likely to be increased or re-opened.

  • Growth Only: 5 Candidates
BOTZ JD MTZ
CARA AMD

*in Bold and Italics: most likely to be increased or re-opened.

*Current Position Increases: Highly Likely to be Executed

  • I plan on increasing my positions in MIC, PAC, MTZ, BOTZ, AMZA and possibly JD. I also seek to average down my cost basis in PEGI.

PROSPECTIVES WATCHLIST SUMMARY

> New Prospective Position Initiations

Sorted by Theme/Industry/Sector:

Data Center REIT/Company GDS+ SWCH INXN IRM QTS COR
Retail REIT SKT STOR PEI
Mortgage REIT HASI+ NRZ STWD LADR BXMT
Health Care REIT SBRA OHI

Infrastructure REIT/LP UNIT LMRK CORR
Industrial Infrastructure MIC+ MTZ+ PWR+ UTX
Transportation Infrastructure PAC+


Energy (O&G) Infra/E&P ENB RDS.B TEP EPD AM MPLX
CVE HLX GLNG REI GTE CRC
Renewable Energy/YieldCo PEGI+ NEP BEP CAFD AZRE TAC
Solar Parts Manufacturer ENPH SEDG FSLR
Lithium Battery/Electric Vehicle HPJ+ LIT OTCPK:BYDDY OTCQX:MLNLF OTCPK:GALXF
Steel TX X
Fiber Optics AAOI OCLR FNSR LITE NPTN FN
Robotics & Artificial Intelligence BOTZ+ ROBO ABB MZOR IRBT NVDA
Internet of Things SNSR
Diversified Tech Investments OTCPK:SFTBY
Cloud/Software CRM+ NTNX+ BOX+ CLDR MFGP
Telecommunications MITL PNTR
Media and Mobile Communications APPS
Social Media FB GOOGL MOMO
e-Commerce BABA+ JD+ BZUN MELI
Gaming & Entertainment ATVI SNE OTCPK:NTDOY
Education TAL
Financial Technology PYPL+
Bitcoin/Blockchain OSTK
Alternative Asset Management BAM BX+ ARES CG KKR APO
Dividend Yielding ETF AMZA+ DIV SDIV SRET SCHD
Health Care SRPT DXCM PETX ABBV VRX WBA
OTCQX:RHHBY MRK MDT
Cannabis/Marijuana-Related CARA TWMJF XXII+

+ Increase existing position

> Prospectives Breakdown by Theme/Industry/Sector:

Data Center REIT/Company

Stock Yield Name Website
GDS+ No Div GDS Holdings en.gds-services.com
SWCH No Div Switch www.switch.com
INXN No Div InterXion Holding N.V. www.interxion.com
IRM 5.78% Iron Mountain www.ironmountain.com
QTS 2.59% QTS Realty Trust www.qtsdatacenters.com
COR 3.10% CoreSite Realty www.coresite.com 

Retail REIT

SKT 5.64% Tanger Factory Outlet Centers www.tangeroutlet.com
STOR 4.78% STORE Capital www.storecapital.com
PEI 7.54% Pennsylvania Real Estate Investment Trust www.preit.com

Mortgage REIT

HASI+ 5.61% Hannon Armstrong Sustainable Infrastructure Capital www.hannonarmstrong.com
NRZ 11.58% New Residential Investment www.newresi.com
STWD 8.92% Starwood Property Trust www.starwoodpropertytrust.com
LADR 9.23% Ladder Capital www.laddercapital.com
BXMT 7.80% Blackstone Mortgage Trust www.blackstonemortgagetrust.com

Health Care REIT

SBRA 7.40% Sabra Healthcare REIT www.sabrahealth.com
OHI 9.27% Omega Healthcare Investors www.omegahealthcare.com

Infrastructure REIT/LP

UNIT 14.43% Uniti Group www.uniti.com
LMRK 8.36% Landmark Infrastructure Partners LP www.landmarkmlp.com
CORR 8.12% CorEnergy Infrastructure Trust corenergy.corridortrust.com

Industrial Infrastructure

MIC+ 8.58% Macquarie Infrastructure www.macquarie.com/mic
MTZ+ No Div MasTec www.mastec.com
PWR+ No Div Quanta Services www.quantaservices.com
UTX 2.37% United Technologies www.utc.com

Transportation Infrastructure

PAC+ 5.24%

Grupo Aeroportuario del Pacífico S.A.B. de C.V.

www.aeropuertosgap.com.mx

Energy (Oil & Gas) Midstream & Upstream

ENB 5.23% Enbridge www.enbridge.com
RDS.B 5.70% Royal Dutch Shell plc www.shell.com
TEP 8.38% Tallgrass Energy Partners, LP www.tallgrassenergylp.com
EPD 6.76% Enterprise Products Partners L.P. www.enterpriseproducts.com
AM 4.96% Antero Midstream Partners www.anteromidstream.com
MPLX 6.76% MPLX LP www.mplx.com
CVE 1.38% Cenovus Energy www.cenovus.com
HLX No Div Helix Energy Solutions Group www.helixesg.com
GLNG 0.84% Golar LNG Limited www.golarlng.com
REI No Div Ring Energy www.ringenergy.com
GTE No Div Gran Tierra Energy www.grantierra.com
CRC No Div California Resources www.crc.com

Renewable Energy / YieldCo

PEGI+ 8.07% Pattern Energy Group www.patternenergy.com
NEP 4.09% NextEra Energy Partners, LP www.nexteraenergypartners.com
BEP+ 5.49% Brookfield Renewable Partners L.P. bep.brookfield.com
CAFD 7.17% 8point3 Energy Partners LP www.8point3energypartners.com
AZRE No Div Azure Power www.azurepower.com
TAC 2.08% TransAlta www.transalta.com

Solar Parts Manufacturer

ENPH No Div Enphase Energy www.enphase.com
SEDG No Div SolarEdge Technologies www.solaredge.com
FSLR No Div First Solar www.firstsolar.com

Lithium Mining / Lithium Battery / Electric Vehicle

LIT 1.29% Global X Lithium ETF www.globalxfunds.com
HPJ+ No Div Highpower International www.highpowertech.com
OTCPK:BYDDY No Div BYD Co., Ltd. ADR www.byd.com.cn
OTCQX:MLNLF No Div Millennial Lithium Corp millenniallithium.com
OTCPK:GALXF No Div Galaxy Resources Ltd www.galaxyresources.com ...

Steel

TX 3.53% Ternium S.A. www.ternium.com
X 0.73% United States Steel www.ussteel.com

Fiber Optical Components

AAOI No Div Applied Optoelectronics www.ao-inc.com
OCLR No Div Oclaro www.oclaro.com
FNSR No Div Finisar www.finisar.com
LITE No Div Lumentum Holdings investor.lumentum.com
NPTN No Div NeoPhotonics www.neophotonics.com
FN No Div Fabrinet www.fabrinet.com

Robotics, Automation & Artificial Intelligence

BOTZ+ 0.04% Global X Robotics & Artificial Intelligence Thematic ETF www.globalxfunds.com 
ROBO 0.12% ROBO Global Robotics and Automation Index ETF roboglobaletfs.com
ABB 3.01% ABB Ltd. www.abb.com
MZOR No Div Mazor Robotics Ltd www.mazorrobotics.com
IRBT No Div iRobot www.irobot.com
NVDA 0.26% NVIDIA www.nvidia.com

Internet of Things

SNSR 0.25% Global X Internet of Things Thematic ET www.globalxfunds.com

Diversified Tech/Communications Investments

OTCPK:SFTBY 0.47% SoftBank Group ADR www.softbank.jp/en/

Cloud/Software

CRM+ No Div Salesforce.com investor.salesforce.com
NTNX+ No Div Nutanix www.nutanix.com
BOX+ No Div Box www.boxinvestorrelations.com
CLDR No Div Cloudera www.cloudera.com
MFGP No Div Micro Focus International plc ADR www.microfocus.com

Telecommunications

MITL No Div Mitel Networks www.mitel.com
PNTR No Div Pointer Telocation Ltd www.pointer.com

Media and Mobile Communications

APPS  No Div Digital Turbine www.digitalturbine.com 

Social Media

FB No Div Facebook www.facebook.com
GOOGL No Div Alphabet abc.xyz
MOMO Momo Momo www.immomo.com

e-Commerce

BABA+ No Div Alibaba Group Holding Ltd www.alibabagroup.com
JD+ No Div JD.com ir.jd.com
BZUN No Div Baozun www.baozun.com
MELI 0.22% MercadoLibre www.mercadolibre.com

Gaming & Entertainment

ATVI 0.48% Activision Blizzard www.activisionblizzard.com
SNE 0.39% Sony Corporation www.sony.co.jp 
OTCPK:NTDOY No Div Nintendo Co. Ltd. ADR www.nintendo.com

Education

TAL No Div Tomorrow Advancing Life Education Group en.100tal.com

Financial Technology

PYPL+ No Div PayPal Holdings Inc www.paypal.com

Bitcoin/Blockchain

OSTK No Div Overstock.com www.overstock.com

Alternative Asset Management

BAM 1.33% Brookfield Asset Management bam.brookfield.com/
BX+ 7.22% The Blackstone Group L.P. www.blackstone.com
ARES 8.72% Ares Management, L.P. www.aresmgmt.com
CG 10.54% The Carlyle Group www.carlyle.com
KKR 3.53% KKR www.kkr.com
APO 6.84% Apollo Global Management, LLC www.agm.com

Dividend Yielding ETFs

AMZA+ 24.85% InfraCap MLP ETF www.infracapfunds.com
DIV 6.18% Global X Super Dividend U.S. ETF www.globalxfunds.com/ 
SDIV 6.82% Global X SuperDividend ETF www.globalxfunds.com/ 
SRET 7.41% Global X SuperDividend REIT ETF www.globalxfunds.com/
SCHD 2.88% Schwab U.S. Dividend Equity ETF  www.schwabfunds.com/

Pharmaceuticals / Health Care Retail / Specialty Biotech

OTCQX:RHHBY 3.58% Roche Holding Ltd ADR www.roche.com
ABBV 2.98% AbbVie www.abbvie.com
MRK 3.39% Merck & Co www.merck.com
WBA 2.25% Walgreens Boots Alliance www.walgreensbootsalliance.com
MDT 2.32% Medtronic PLC www.medtronic.com
VRX No Div Valeant Pharmaceuticals www.valeant.com 
DXCM No Div DexCom www.dexcom.com
SRPT No Div Sarepta Therapeutics www.sareptatherapeutics.com
PETX No Div Aratana Therapeutics www.aratana.com

Cannabis/Marijuana-Related

CARA No Div Cara Therapeutics Inc www.caratherapeutics.com
TWMJF No Div Canopy Growth Corp www.canopygrowth.com
XXII+ No Div 22nd Century Group www.xxiicentury.com

Top New Prospective Picks

Out of all the above candidates on my watchlist, there are those that currently stand above others for possible near-term inclusion in the portfolio. My choices are based on: macro thematic trends, high growth potential, growth at reasonable price (GARP), deep value, sustainable & growing yield, overwhelming bullish sentiment, continuing momentum, trend reversal, and special situation/event catalyst reaction plays. I GENERALLY BUY STOCKS/EQUITIES FOR THE LONG TERM, but may choose to build or increase a position given any of the circumstances previously mentioned.

Top New Yield and Growth/Value Candidates

IRM QTS SKT STOR STWD SBRA
UNIT LMRK ENB RDS.B TEP EPD
AM MPLX TX WBA OTCQX:RHHBY MRK

*in Bold and Italics: most likely to be initiated in the coming week or quarter.

Top New Growth/Value Only Candidates

SWCH ENPH SEDG OTCPK:BYDDY LIT OTCQX:MLNLF OTCPK:GALXF
ROBO OTCPK:SFTBY AAOI FNSR CLDR GOOGL ATVI
BZUN TAL BAM DXCM SRPT VRX TWMJF

*Bold and Italics : most likely to be newly initiated in the coming week or quarter.

Select New Prospectives: High Probability to be Bought

Baozun Inc, a Chinese e-commerce small-cap growth stock, is a leading, digital and e-commerce service partner in China that helps brands and retailers build e-commerce success. Dubbed as the "Shopify of China", BZUN provides end-to-end services, including website design, development and hosting, IT infrastructure, customer service, warehousing and logistics services, as well as digital marketing.

Baozun innovatively connects brands and consumers using their deep local know-how and robust e-commerce supply chain technology and services. BZUN strives to protect and enhance brands’ images online while enabling increased engagement with consumers to drive sales and profit.

Baozun has drawn comparisons to Shopify, yet trades at one-ninth the market valuation. As the leader in this emerging industry, the company offers one-stop, integrated e-commerce services for Western brands looking to break into the Chinese market. Its high-profile clients include Nike, Microsoft, Budweiser, Starbucks, Victoria’s Secret, and Calvin Klein. 

BZUN has 140 brand partners in 8 categories with over RMB 3.6 billion gross merchandise volume or GMV (up 64% YoY), as of June 30, 2017. Alibaba is a key partner and investor in the company, and rates Baozun as the highest quality brand e-commerce service provider on Tmall (six stars). BZUN also helps its clients create online stores on JD.com too.

Baozun is the largest brand e-commerece service partner with ~25% market share in 2016 based on China’s total brand e-commerce service market size of RMB69 billion in terms of transaction value in 2016, according to iResearch. BZUN provides end-to-end e-commerce solutions with omni-channel capabilities for its brand partners, comprising the entire value chain of IT solutions, online store operations, digital marketing, customer service, warehousing, and fulfillment. The company offers its clients customized solutions depending on their specific needs and goals, and assigns them dedicated personnel. Further, the company also partners with leading logistics companies to achieve next-day delivery in 100 cities across China.

An article on Yahoo! Finance points out 5 reasons why the best is yet to come for Baozun: [1] the growth of Chinese e-commerce, [2] a defensible niche market, [3] an evolving business, [4] solid growth rates, and [5] reasonable forward valuations.


SeekingAlpha articles on Baozun include:

Lastly, Baozun is set to announce Third Quarter 2017 unaudited financial results on November 21, 2017

Here's their latest slide presentation from August 2017.

TAL Education Group, a Chinese education services mid-cap growth stock, is a leading K-12 after-school tutoring services provider in China. Tomorrow Advancing Life (TAL) offers comprehensive tutoring services to students from pre-school to the twelfth grade through three flexible class formats: small classes, personalized premium services, and online courses. TAL's tutoring services cover the core academic subjects in school curricula including math, English, Chinese, physics, chemistry, and biology.

It has successfully established "Xueersi" as a leading brand in China's K-12 private education market closely associated with high teaching quality and academic excellence in China, as evidenced by its students' outstanding academic performance, its over 70% annual retention rate, its ability to recruit most of its students through word-of-mouth referrals as well as the numerous recognitions and awards it has received. TAL started operations in Beijing in 2003, and has rapidly expanded its extensive network of 575 learning centers in China. It also operates www.jzb.com, a leading online education platform in China. 

SA analysis on TAL Education Group include:

Here's their latest investor presentation from October 2017.

Enbridge (NYSE:ENB)

Enbridge, a North American large-cap dividend growth energy infrastructure stock, operates the world's longest crude oil and liquids transportation system in the U.S. and Canada, with significant natural gas gathering, transmission, and midstream businesses. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company and provides distribution services in Ontario, Quebec, New Brunswick, and New York State. As a generator of energy, ENB has interests in approximately 3,500 megawatts (MW) (2,500 MW net) of renewable and alternative energy generating capacity which is operating, secured, or under construction, and ENB continues to expand its interests in wind, solar, and geothermal power. ENB has five business segments: Liquids Pipelines; Gas Distribution; Gas Pipelines and Processing; Green Power and Transmission; and Energy Services.

Enbridge now has an industry-leading C$31 billion in secured expansion projects in execution (scheduled to come online between 2017 and 2020), plus C$48 billion of development projects. As of Sep. 2017, C$9 billion of C$12 billion in 2017 projects were in service. 

ENB has a relatively low-risk business model with limited direct commodity exposure. Approximately 96% of cash flow is underpinned by long-term commercial agreements and less than 1% of cash flow has direct commodity exposure. 

Enbridge now yields 5.27% with an annual dividend rate of 1.92. It has increased its dividend by 10% in early 2017. Driven by a strong pipeline of commercially secured projects, ENB anticipates dividend growth of 10%-12% each year from 2017-2024 (while maintaining a payout ratio of 50%-60% of available cash flow from operations, or ACFFO). It has a healthy 1.0X-1.2X distribution coverage ratio as well.

Earlier in the year, Enbridge completed its merger with Spectra Energy to create North America's premier energy infrastructure company with C$166 Billion enterprise value. In spite of the disappointing miss in their recent earnings report for the 3rd quarter, results showed that the Spectra deal has started to boost profits for Enbridge.

There is extensive coverage on Enbridge here at SeekingAlpha:

Here is the latest investor presentation from ENB's Q3 Financial Results:

ER Released/Date Release of High Priority Prospective Buys:

Stock Quarter EPS/FFO Revenue Date BMO/
TAL Q3 2017 Miss by $0.01 Beat by $16.45M Oct. 26 BMO
ENB "  Miss by C$0.05 No Comparison Nov. 2 BMO
BZUN " ? ? Nov.21 AMC

Weekly Holdings Updates for Nov. 5 - 11, 2017

No updates found last week for CONE, BX, HPJ, HASI, BIP, AMZA, PAC, and BOTZ.

> Post-Earnings:

> Q3 Earnings Results:

> Post-Earnings:

>Q4 2017 Earnings Results:

> Pre-Earnings:

> External Source:

> External Source:

> Q3 Earnings Results:

> Q3 Earnings Results:

Portfolio Summary November 10, 2017


Disclosure: I am/we are long JD, DLR, CONE, BABA, PEP, BX, MSFT, HPJ, PEGI, HASI, TCEHY, INTC, BIP, NTNX, CRM, PWR, MU, PYPL, BEP, BOX, MIC, BMY, AMZA, ORCL, BAC, MTZ, GDS, PAC, CSCO, PFE, and BOTZ.

Additional disclosure: Not currently in the portfolio, but I am also LONG NEP. I am NOT currently long with my positions in KHC, DIS, T, KO, XXII, MDLZ, and GE, but I am considering going LONG AGAIN with my positions in DIS, T and MDLZ.