|
What happened? Just Eat (GrubHub of Canada and the UK), and Takeaway.com (Same thing in Amsterdam) are merging. Consequently, shares of Just Eat (Ticker: JSTTY) went up by more than 19%. The celebration came after takeover news by Takeaway.com. What does it mean for investors? The company has been growing rapidly and steadily, with the most significant growth coming from its Canadian operations. The merger by Takeaway.com is perceived to be great news for investors. It will give the combined company the strength to compete with Amazon-backed delivery competitor Deliveroo. While this company has proven to be a well-managed and growing stock, the takeover news has pushed the stock to an overvalued range. There is no need to rush and invest now. The resulting company may still be worth investing in, once the merger is finalized and the dust is settled. Zoom out, and now what does it mean? Delivery-food wars and mergers are coming. Amazon shut down its food delivery and instead invested in Deliveroo. The combination of a very competitive market + delightfully entitled customers + and the need for delivery speed is killing these company's margin. There is not enough room for too many food-delivery apps. We should be ready for similar mergers and takeovers in the U.S. market. Low margin businesses, with high acquisition cost, and little to no customer loyalty need massive scale to become profitable and stay like that. By the way, Just Eat's Stock Card is here: https://stockcard.io/JSTTY #investment #investor #stockmarket #fooddelivery  Episode eleven of our Weekly Master, the Basics of Stock Market Research webinar, is out. In this episode, we discussed, is it time to invest in Snap (Ticker: SNAP)? The latest better than expected quarterly results by Snap has got the market excited, and the stock price is rocketed. If you have been watching the stock for a while and have been wondering whether its time to invest in Snap, this episode is for you. Don't forget to join us next week for another live and informative "Master the basics of stock market research" webinar. Register here: Register here: https://blog.stockcard.io/webinar.html
Folks, last week, we talked about July as the month to review our portfolios and watchlists to identify what's worth our attention, and which stocks have lost their luster. I shared with you a four-part checklist. And, the first two questions in the checklist are about which winners in our portfolios are worth holding, and which losers are not worthy of our time anymore.
This week, I'd like to share our approach to answer the first two questions of the checklist. This is a long-form email that goes through the step-by-step process we are using to conduct our July's portfolio clean-up. Let's get to it.
STEP ONE
There are 94 stocks in my Roll With Our CEO portfolio. First, I wanted to identify the winners and losers based on their total return in comparison to the overall market. I have all such information available to me on Stock Card. If you go to Track Your Performance page, the last column in each portfolio shows your stocks' gain over the S&P 500 market index. I used that column to group my stocks into overperforming (winner) and underperforming (loser) stocks. This is how the results turned out: 
Note that an underperforming (loser) stock may have grown higher, but not just faster than the overall market. While not losing money is great, overperforming the market matters the most. If they are underperformers, you'd want to dig deeper to figure out whether you can see a reasonable path for the company to surpass the market. Otherwise, it needs to get casted to free up cash for stronger picks.
STEP TWO
The next step I took was to group the stocks in my Roll With Our CEO portfolio based on their market potential and operational strength. Again, such information is available on the Track Your Performance page. Looking at the Stock Card's 2X2 thumbnails (on All Stock Card page), as you know, the top two colors represent "market potential" and "company strength". If both market potential and company strength categories were yellow, grey, or red, indicating a potential weakness in the market or operations of the company, I tagged the company as a stock that needs a "Review." Here's how the results turned out: 
STEP THREE
Now, let me take the analysis one step further to figure out how many stocks are real concerns because not only they have "Underperformed" the market, but also they need a "Review". This is the part I'm very excited about. It's a map of my portfolio based on where I need to pay the most attention: 
In the next few weeks, I will share a detailed review of the 20 stocks in my portfolio that have underperformed the market, and also have shaky market potential and operations. The Stock Cards of those companies will get a comprehensive review and update, and you will be notified if any of them are either worth adding more to or getting rid off. Stay tuned for the next update.
NEXT STEP FOR YOU:
Now, it's your turn to start your July portfolio review. How many of your stocks have underperformed the market? And, which ones have a combination of shaky market and operations?
If you have any questions about how to evaluate your portfolio using the above approach, you can schedule a one-on-one Office Hour. This is a concierge-style service we only provide to our VIP users. All existing VIP members or if you are planning to join us as a VIP member, have the privilege to schedule a VIP only Office Hour to ask their questions (Disclosure: We are stock market research coaches. The Office Hour is not an investment advice and we are not investment advisers.)
Episode nine of our Weekly Master the Basics of Stock Market Research webinar is out. In this episode, we answered a question submitted by one of our newest members, Michael (He didn't give us his last name). He asked, "How to get the most out of Stock Card?" Thank you, Michael, for submitting this great question! If you are new to Stock Card, if you have been wondering how to best use Stock Card to research the stock market mistake-free, this episode is for you. Don't forget to join us next week for another live and informative "Master the basics of stock market research" webinar. Register here: Register here: https://blog.stockcard.io/webinar.html Folks, how often do you review your entire portfolio? How regularly do you clean up your watchlist? For me, it happens at least twice per year. Do you remember the 2018 Castaways portfolio from last December? We went through the Stock Card's universe and got rid of the companies that were not worthy of our time and attention any more. As we enter July, it is time to step back again and get a sense of how things are going. The goal is to make sure that the stocks we own are still worth holding, and the stock in our watchlists are still worth our attention. During July, as I go through my semi-annual clean-up, you will hear a lot form me and my Roll with Our CEO portfolio.  Here is the 4-part checklist I will be following to complete my July's clean-up:
The winners:
Are you ready to do the same for your own portfolio? |
Archives
February 2022
Categories
All
|
RSS Feed