Trading Portfolio June 2015

We trade options and sometimes hold stocks for capital gains in rare situations.  Our current trading portfolio selections are based on mostly mega and large cap stocks that are valued based.  We look for stocks that have small downside risk and upside opportunity.  Therefore as an individual investor who might be looking to buy individual stocks one can use this list for selecting individual issues that are good for capital gains.  We also remain convinced that financial engineering that consists of low Federal Reserve rates into 2016 and huge stock buybacks support the stock market.  As we have opined in the past large cap stocks such as these selections are supported by the current political economy of the Obama administration and likely future Clinton administration who favor huge corporations who fund the Democratic party and thus get favorable regulatory and tax treatment in return.  We also believe a correction if it comes will be short lived and bounce back rather quickly.  

              

AAPL..Are largest position since we believe Apple has very low risk.   We currently think the price has stalled out due to the recent upgrade cycle has matured.  However Apple runs in stages so holding it is the best choice.  Still undervalued. 

AGN..This drug maker Allergan has continue to ramp up with good acquisitions and a long line of branded and generic drugs. They are widely held in hedge funds and most holders believe there is significant upside here at around a 13 PE

C..Citigroup is a excellent long term holding for a bank stock.  The big four banks control the assets in this country as preferred by the Obama and soon Clinton administration and are protected politically.  A single digit PE. 

CHL..Chinese mobile phone carrier China Mobile is the largest such company on earth with several hundred million subscribers.  A low PE of about 13 makes us sleep well at night. 

CSCO..Cisco controls much of the switches and gears of the web and onsite business technology and again with a low PE they are a solid long term holding. 

FB..Despite a higher PE in the upper teens we like Facebook as the future of the social media atmosphere.  Any sell off will likely result in significant buying by funds and large holders placing a floor underneath the moderately high valued shares. 

GILD..Still at only a 10 PE this drug maker Gilead is a powerhouse of bio drugs. 

GS..Large investment bank Goldman Sachs is the top dog when companies need mergers and advice. A low PE of 10 makes for solid opportunity. 

IBM..We consider this low PE stock one of more risky selections, but as long as Warren Buffet owns shares we will too. 

JPM..Largest bank in the country and one of the big four.  JP Morgan is politically connected and will do quite well with Hillary Clinton in charge.  Best valued of the large banks. 

MET..Large insurer Met Life is selling under a 10 PE which is cheap. 

NEWM..Our most aggressive selection.  New Media Investments has been sold off way oversold now and we believe presents a significant opportunity for long term capital gains and a 7% dividend at current prices.  We have significant share numbers here. 

NNC..Our largest long position for some time is taking some lumps due to concerns over interest rate increases.  Nuveen North Carolina Fund is still yielding over 4.5% tax free and we believe is a bit oversold right now. 

ORCL..Large software company that offers software packages to businesses.  We are considering dropping Oracle due to valuation concerns.  Not high valuation, just not cheap anymore. 

PM..Large tobacco company that we will be dropping this month.  Good stock and safe dividend, just does not fit our trading profile at this time.  

PRU..Prudential has been on our list for some time as a single digit PE large insurance company and remains so for now. 

QCOM..A new selection for us Qualcomm is inside every mobile phone and has patents on most of those tech pieces.  That includes the phones in China as well.  The stock has been sold down too low and we believe it is safe at this low PE and lower price. 

T..Second largest phone carrier in the US AT&T is a solid choice for dividends and capital gains with almost no downside risk. 

TCAP..We like this stock and company, but will exit our position this month due to interest rate concerns.  We still believe it is a good long term holding and the significant dividend is safe. 

VZ...Largest mobile phone carrier in the US Verizon is a solid choice for dividends and capital gains with almost no downside risk.