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Weekly Outlook, 4-23

Apr. 23, 2011 9:49 AM ETNRG, NCI, TRLG, AZN, LLY, BAC, GES, SPY
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Seeking Alpha Analyst Since 2010

I am currently a student. I use a mix of technical and fundamental analysis to arrive at investing prospects and then do in-depth analysis.

 I didn't watch the market much this week, as I was out of town. It seemed to have a strong week. Right now, the market isn't trending. This is a great time to be looking for investments, because some overbought companies will use this sideways period as a time for pullback, and other companies will continue to soar through the market's consolidation. I used my time off this week to write a scathing report of Navigant Consulting <a href="seekingalpha.com/instablog/596900-charli...;>here</a>. Management is paying top dollar for mediocre performance that shows no sign of abating. With this in mind, I sold my stake in both the model portfolio and my own real portfolio for about a 9% gain, which was decent. That left me with a large cash position which I used to enter new positions. I bought 500 shares of Guess? [GES], which has been outperforming the apparel industry for years, and has a strong brand. I also bought 400 shares of AstraZeneca [AZN], which has the same pros as Guess. I placed an order to buy 350 shares of Eli Lilly. This purchase spreads my bets around the drug manufacturing industry, which has underperformed. The poor performance of the industry as a whole has dragged down some great names, including these two. Both pay over 5% in dividends and are cheap. My purchase of Eli Lilly is smaller because it earns lower returns on capital than AstraZeneca. Even with these purchases, I should have roughly $20,700 in cash. With that last bit of cash I plan to enter into a trade of Bank of America [BAC]. I will place a tight stop to manage risk with this financially troubled behemoth. Cheers.

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