May 13

Technology Falters

Good day,

Technology shares have had a good run over the last few years but the trend has changed as of late. We have sold our tech positions in the Willoughby Investment Pool as corporate earnings in the sector have declined overall. The anomaly here is Facebook which has grown its earnings per share by 17.3% over just one year and 405% over the last few years. We’ve been adding to the name since early May and it seems we’re not alone in our analysis as 8 out of 9 analysts who currently cover the stock have also increased their earnings estimates over the last 60 days.

On the consumer staples side we purchased Hormel Foods which owns some 60 brands including Skippy, Muscle Milk, Spam, etc. The stock had dropped about 11.5% in April despite strong fundamentals. We jumped on the opportunity and began purchasing on May 2nd and have captured over 3% on the bounce.

While the S&P500 is up about 2% year to date, in Canadian terms it is down about 8.25%. Sector and security selection is paramount in this environment and we continue to maintain a bias towards an active approach.

Enjoy the sunshine!

Danny                                                                                                                                                                                       Return to All Posts

 

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Daniel Popescu CFP, CIM, FMA, FCSI
President & CEO

MNP Tower, 3100-1021 West Hastings St.
Vancouver, BC V6E 0C3
T: 604-558-6830/1(877) 588-6822
F: 604-558-6823
harbourfrontwealth
.com

 

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