My Investing Journey with Passive Income and Stock Market investing

Category: Growth Stocks Page 1 of 5

INSANE Returns

All I can say is the returns lately have been absolutely INSANE.

I want to highlight some picks over the last six months here:

1)CHEWY-Chewy just had a fantastic report and is seeing numerous upgrades and higher price targets. I think we go even higher from here. Every time I drive around I see Chewy Boxes at people’s houses to be recycled. Most importantly, they have great customer service and people love this company (and their pets). I have literally been buying more shares every month. I’ll be holding this one a long time! Currently up 46%

2)HOOKER FURNITURE COMPANY-Out of nowhere this has been my turnaround kid. The last six months has just been INSANE with this company. I went from being down in this stock in 2019 to now I am up almost 30%, some tranches up over 120%. This past earnings report was incredible and they just raised the dividend by 12%. I will be holding this smaller cap stock a very long-time as well. Their social media presence really shows the strength of this company with it’s customers.

3)VIRGIN GALACTIC-This is by far one of my riskiest investments. At the same time, the returns have been incredible. I am now up 57%, with some tranches up 85%. At the moment, the company isn’t bringing in any revenues but I think this one could go to outer space sure enough.

4)KAISER ALUMINUM-If you’ve watched this blog, you know I’ve been in and out of this stock many times over the last two years. After the March Crash I saw an opportunity, the stock was at a NINE YEAR LOW. So I dug in and I kept adding. Well, they made an acquisition of a can company; this resulted in the stock going up 10% in one day and another 12% the next. I am now up over 40% in KALU. I knew it would be some nice gains but I thought it would be years before I saw this. I’ll take it!

5)CITIZENS FINANCIAL GROUP-I’ve never bought a bank stock before, I’ve been leery of them for years. However, I kept running numbers/figures on CFG and just firmly believed it was undervalued, trading under Tangible Book value. Turns out I was right and now I’m up over 26% in this one as well, not counting those dividends. What a dividend! It was yielding over 5.5% in some of my tranches. I believe the banking sector is going to be fine with these low interest rates. CFG reported a 1% reduction in interest rate income but non-interest rate income was up over 30%. These banks are going to find plenty of ways to make money.

In summary, this is the strongest my portfolio has ever performed. My Brokerage account which has under performed for awhile is now the HUGE outperformer. On a 3 month basis my brokerage is beating the market by 12%, on a 1 month basis it is beating it by 4.20%. My IRA has slid a bit (underperforming the market by about .5%). However, YTD it is ahead by just a small bit.

I’m anxious to see how I do in 2021. So far 2020 has been a huge success. I firmly believe this is because in my IRA I pulled out before the March Crash and then I went back in buying hand over fist things like Stanley Black & Decker at rock bottom prices. My brokerage account performance was greatly enhanced by my sell of Eaton Vance (Up 53%) and it was my 4th largest holding.

Looking forward to the rest of the year and 2021!!!!!

Top Growth Stock picks for 2020

I’ll first give you the list and then some data about why I like these companies. However, I’ll preface it by saying I own all of them but two.

  • FORTINET
  • NETFLIX
  • MIMECASE
  • TYLER TECHNOLOGIES
  • IDEXX
  • CHEWY
  • GENPACT
  • FACEBOOK

The chart above provides a summary of SOME of the data I look at when evaluating GROWTH STOCKS. Things like EPS growth, both on a quarterly and yearly basis. Predicted EPS growth and Cash Flow Growth rates are some other things I make sure to look at. Lastly, Return on Equity and REVENUE trends.


SO HERE ARE THE STOCKS

First, let’s look at FORTINET. Fortinet is a Cyber Security stock that isn’t too exposed to the COVID-19 area.

Quarter to Quarter EPS growth of 76.47%, A 5 yr cash flow growth rate of 52.4%, 22.07% Revenue growth Q to Q and lastly a 35.56% Return on Equity. FORTINET is an extremely well managed company, has very little debt on their books, and is a CASH FLOW KING.


MIME: Mimecast is an EMAIL SECURITY company. They do a lot of work with Microsoft products. 29.2% Year to Year EPS growth and a 21.57% 5 year Cash Flow Growth Rate. This stock has an even higher EPS growth rate year over year than Fortinet. In addition, it beats it out in the Revenue growth department. Another thing you can’t see in this chart is that the companies MARGINS are increasing, which is a good sign as well.


NETFLIX-What can I say, Netflix is one of my all-time favorite stocks; I am up over 60% in this stock. The main reason I started investing in Netflix was because I saw that the Cash Flow growth rate was incredible. Over five years it has increased its CF growth rate 44%. INCREDIBLE! You can also see from the chart above that NFLX is putting up some HUGE growth numbers, over 100% Quarter to Quarter. Return on Equity is fantastic, so the company is managing itself well and revenues continue to increase. I believe Netflix is positioned well during COVID-19. I simply hope they are able to film more and more movies without too much interruption. Lastly, I believe NFLX has shown that its competitors are no match for it, DIS didn’t take its market share (for many obvious reasons).


FACEBOOK-I no longer own FB, I swing trade it from time to time. At the same time, it’s hard to deny that its book look wonderful. Just look at the Cash Flow and Revenues, not to mention the great EPS growth rate quarter to quarter. Once again, I think Facebook is one of those stocks you can count on to get you through COVID-19 unscathed. Despite a recent mix up with large companies that no longer want to use the company for advertisement, I believe FB is going to be okay without them. FB has a HUGE number of advertisers, it’s a place they need to be.


GENPACT-Genpact is more of a slow grower, not a 100% growth stock. It’s been around for a long time and is a very diversified company. Its primary business of course is analytics. 41.94 EPS growth Q2Q is pretty incredible for a company with this history. 23% projected growth next year is another reason I put this on my growth stock list. At these prices, I believe the company is seriously undervalued. I’m currently buying more of this stock.


IDEXX-Idexx is involved in the vetinary product business. Between this and Chewy, you could be on the start to a PET ETF :). Once again, you can see that this one has some slower EPS and revenue growth numbers than many of the others. However, a hefty 21% projected growth for next year. I think this will be a fine company to own in the future. Disclaimer-I do not own this one, at the moment I find the valuation to be just a bit high.


TYLER TECHNOLOGIES-This is another one that is more of a slower grower. It’s revenues have slowed and is only projected to grow 8.52% next year. At the same time, I feel the company has a nice moat. 68% increase in EPS quarter over quarter, so maybe it can keep that going and beat expectations with its growth


CHEWY-Chewy is one of my favorite stocks right now, our little cats love this company. With COVID-19 still running rampart, I think ordering pet supplies through the mail is here to stay. I do have some concerns with the company, the main one being how many shares it’s employees are being reimbursed with. However, look at the gigantic REVENUE growth on this one quarter to quarter…..46%! Analysts are projecting a 57% increase in earnings next year as well. I believe the future looks bright for Chewy. I unfortunately only own a very small portion (1% of my portfolio) so I plan on upping my game in this one before the year is over.

HERE IS THE YOUTUBE VIDEO AS ALWAYS:

JUNE PASSIVE INCOME & MY PORTFOLIO

HERE IS MY JUNE BREAKDOWN

  • Adsense $4.96
  • Amazon Affiliate $2.82
  • Skillshare $9.21
  • Digital Products $24.50
  • Patreon $76.81 (Before Taxes)
  • Teachable $9.21
  • Dividends $12.33
  • Dividends in retirement accounts $101.21
  • Swing trading $37.06

TOTAL PASSIVE INCOME (NOT COUNTING RETIREMENT) $197.35

TOTAL PASSIVE COUNTING RETIREMENT DIVIDENDS $298.56

Some notable improvements, last month I had ZERO Digital Products and Amazon Affiliate income. So even though they are small amounts, it is a positive movement. Patreon, like last month, continues to be the outperforming. My swing trades for the month include ROKU and FACEBOOK, both over an 8% return.


My DIVIDEND BREAKDOWN:

Putnam Municipal Income CEF (PMM) $.26

Marten Transport $0.20

Genpact $1.46

HOFT $10.40

In my Traditional IRA:

IEF $.61

SWK $11.04

Kforce $2.20

Cash $0.01


MY PORTFOLIO

The MAIN thing I’m doing is contributing more and more into ITOT (A total market ETF). I am also selling small portions of VALUE/DIVIDEND stocks like Westrock, Medical Properties Trust, and American Eagle Outfitters.

I want to increase my positions in growth stocks like Chewy, Fortinet, Akamai, and Marten Transportation.

I’m also buying small portions of the gold ETF, IAU. I think Gold still has a little bit more to run before another pullback.

QQQ ETF is Fantastic | My Portfolio

The two main ETF’s I’m buying this month are QQQ and ITOT. QQQ is weighted towards the Nasdaq and technology. I think during this Coronavirus crash, weighing heavier towards technology is a wise move. So far, it has paid off quite well.

I just added $400 to my ROTH IRA and $500 to my Traditional IRA. In addition to the above ETF’s, I’m also buying these individual stocks-Universal Forest Products and Chewy. I am up over 25% in Chewy, it is of course a growth stock. Chewy is a company that specializes in pet foot delivery. We use their services and see Chewy boxes all around us via our neighbors each week.

In this video, I discuss these ETF’s and bring you my dividend report SO FAR for the month of June **More Dividends to come!**


So far, my DIVIDENDS are as follows:

Stanley Black & Decker $11.04, IEF $0.61 for a total of $11.65 in my TRADITIONAL IRA

PMM $0.61 in my BROKERAGE. Lots more DIVIDENDS to come in this account!

In my ROTH IRA, VBILX $6.77

I’m FINALLY able to add to my accounts this month, so, I’m looking forward to watching that money grow in the market.

I am currently sitting at 6%; one of my short-term goals is to get my total market ETF’s/Index Funds up to 25%. I also want to continue increasing my position in Chewy, Universal Forest Products, Marten Transports, and Fortinet. I feel strongly that these stocks are going to GROW big over the next few years.

Lastly, I’ll briefly mention my Swing Trade for the month. I am swing trading ROKU. This won’t be a long-term hold for me, I’m simply looking for a 8% gain. I am sitting at 2% right now, holding a bit longer. Update later!

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