What A Week - Model Portfolio - Week 1
It was a great week. I just cannot do daily performance checks, but I will try do do weekly updates. For the week we were up 5.39% compared to the S&P 500 of 1.47%. Morningstar has a mid-cap value index that was up 3.55%
We got a nice upgrade from a small broker, Cowen, on Molson-Coors. I thought Cowen only followed technology stocks. Then I saw that Cowen had recently been acquired by the Canadian bank TD Bank (Toronto-Dominion). There thesis is that TAP’s low priced beer portfolio is well positioned for the coming depression. We might all need some cheap beer.
Only one company reported this week. Walgreen’s stock had a bad reaction to a seemingly decent quarter. I was going to go back and listen to the quarterly meeting, but I found a well written update on SA. It was written by an analyst I had never read before named Yves Sukhu.
I immediately wanted to see what else Mr. Sukhu had written, and I found some very interesting stuff. He had a nice writeup on a European engineering firm, ABB, that I want to look at soon. He also has an interesting writeup on high yielding Xerox that I want to think about some day. Better yet, Yves used to be in the enterprise software business and has a spectacular report on a MongoDB, MDB. This is a beaten down tech name that I think has some possibilities.
This is exactly how you have to use Seeking Alpha. When you find a good report you have to look at what else that analyst has written. Which reminds me it is time to build my “Must Follow” list. That will be the next post.
I agree that the reaction to WBA earnings was a puzzler.. The stock is trading at an undemanding 8X EPS. Has been a terrible performer for 7 years (down 60%) and operating earnings are also down 60% over that time. New strategy and acquisitions are intriguing and they still have a lot of AmerisourceBergen shares they can sell. Investors these days hate the "big decline in earnings this quarter, but we promise a huge rebound by end of year" companies. But again, at 8X EPS it won't take much to see modest multiple expansion 10-11X if things go "better than feared".
New CEO with impressive background, but not a lot of turnaround experience.
Walgreens Boots Alliance, Inc.
Rosalind G.
Brewer
●Chief Executive Officer and Director (March 2021-Present)
Spelman College
●Chairperson, Board of Trustees
Starbucks Corporation, a global food and beverage company
●Director (March 2017-February 2021)
●Group President, Americas and Chief Operating Officer (October 2017-February 2021)
Walmart Inc., a global retailer
●President and Chief Executive Officer, Sam’s Club (February 2012-February 2017)
●Executive Vice President and President, East Business Unit (February 2011-January 2012)
●Executive Vice President and President, Walmart South (February 2010-February 2011)
●Senior Vice President and Division President, Southeast Operating Division (March 2007-January 2010)
●Regional General Manager, Georgia Operations (2006-February 2007)
Kimberly-Clark Corporation, a global health and hygiene products company
●President, Global Nonwovens Division (2004-2006)
●Various management positions (1984-2006)
Another impressive new board member
Bryan C. Hanson
Professional Experience
Zimmer Biomet Holdings, Inc., a manufacturer of medical devices
●Chairman of the Board (2021-Present)
●President and Chief Executive Officer (2017-Present)
Medtronic plc, a medical device company
●Executive Vice President and Group President, Minimally Invasive Therapies Group (2015-2017)
Covidien, a medical supplier company
●Group Vice President, Covidien (2014-2015)
●Group President, Medical Devices & U.S. (2013-2014)
●Group President, Surgical Solutions and President, Energy-based Devices (2011-2013)