In September 2016 I acquired Target’s stock in the upper 60s. This was shortly after the company went “political” and sparked a boycott from conservative groups. In addition, the company was facing stiff competition from Amazon and other retailers were failing everywhere. I watched the stock fall into the lower 50s. As it collapsed further, I … [Read more...]
Commission Free Trades
Over the course of this blog I’ve discussed how my goal was to deploy $2000 into the stock market. This typically took the form of one position, maybe two. However, in the past few days TD Ameritrade opted to eliminate its $6.95 trading fee. Schwab initially cut its trading fee to $0 to better compete with Robinhood. Other brokers, including … [Read more...]
Vaping Ban Batters Juul
I recently added Altria to my portfolio citing the transformation of its business and low valuation. Unfortunately, it turned out to be a falling knife, with the stock falling almost every day since I bought it. The concerns are threefold; high debt, declining cigarette sales, and a vaping ban. Over the past several months, there have been an … [Read more...]
Recession Fears
In my last post we discussed the slowdown in the industrial sector and how it is affecting companies like 3M. However, on a global scale, other sectors appear to be contracting. More specifically, we’re seeing a mild recession in Germany and growth in China slowing dramatically. The U.S. appears to be the bright spot. Yes, industrial companies … [Read more...]
No Alternative
Due to trade uncertainties, the market is pricing in an interest rate cut at the end of the month. During the July 30-31st Fed meeting, officials are 100% expected to cut interest rates by 25 basis points. Furthermore, this comes with the possibilities of future rate cuts in late 2019 and early 2020. This means borrowing costs will decline and … [Read more...]
Kraft Heinz Implodes
In the era of changing consumer preferences, it’s important for companies to invest heavily in their brands. Cutting costs and becoming more efficient can only go so far. We saw this as Kraft Heinz lost over 27% of its value in one day. I’ve defended my purchase of companies like General Mills because of their strategy of building value for … [Read more...]