Week of March 16th-New Positions and Thoughts
While I said I was working on REDUCING positions, I managed to INCREASE positions. I guess the deals got too good.
I started a small position in HOME DEPOT. I do feel it can go a little lower here but Home Depot will be fine long-term and I thought it was a good chance to get in on a company that has very little competition. I personally would rather shop at Lowes but Home Depot’s margins and bond ratings a little better here to me than Lowes.
I also bought a few shares of Stanley Black & Decker. This is another home improvement play. This companies share price has been getting destroyed. I don’t like the recent acquisition that has exposure to Boeing (amongst all of its problems) but I’ll overlook it at this level.
Smuckers-I still think this one is a bit overvalued but as we head into lockdown and a potential recession I think I’d like to increase my exposure to Consumer Staples. Especially considering how great General Mills has been to me. The Dividend is currently 3.26%
Chewy’s-Here is a riskier play but one I’ve been on the fence about for a while. With the Coronavirus, people are pent up in their house for a bit and the pets still have to eat. We use Chewy’s service for our two cats (Sid and Ellie) and are pleased with the service and price. So just a few shares of Chewy’s at this level.
Akamai-As usual, I’m still loading up on Akamai, I want it to be one of my top 4 positions.
What am I avoiding?
Ryman Hospitality Properties has just completely fallen apart. Nobody could have seen this coming. All I can do at this point is hold tight, hope they don’t cut the dividend and worse, hope they don’t go bankrupt. This is a MESS. The risk is very high at this point and I can’t buy any more.
Darden Restaurants is in a similar mess. No one will be sitting down at a meal at Olive Garden for a while. The price is nose-diving bad. I simply can’t buy any more here.