Post a CommentLast week was a fairly quiet one but the overall return of my portfolio is now up to 19.40% (before fees) and the average trade has returned 9.05%. I’m obviously happy with the results so far.
I discuss these type of things as well as give my thoughts on the tech stocks in my free email newsletter, feel free to join here:
You can also see my live trades here:
http://www.intelligentspeculator.net/livetrades
As I’ve mentioned many times, this is a return gross of fees. The main fees involved are the borrow costs (net of interest on cash) and can be up to 1-2% on average per year.
Back to today’s business though. I decided to go back to shorting Adobe (ADBE) at the same time as I’m closing my previous one on the company.
| Ticker | Name | Price | PE Ratio | PE Next Year | Return YTD | Sales Growth | Analyst rating | Book Value | Beta | Revenue/Share | Sales 5Y Avg Growth | EPS 5Y Avg Growth |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADBE | Adobe Systems Inc | 66.91 | 112.35 | 32.49 | 11.46 | -7.91 | 3.89 | 13.26 | 0.94 | 8.09 | 5.25 | -8.22 |
| FB | Facebook Inc | 62.5 | 83.93 | 34.47 | 15.18 | 54.69 | 4.63 | 6.53 | 0.68 | 3.25 | N/A | N/A |
ADBE Revenue (Quarterly YoY Growth) data by YCharts
Long Facebook (FB)
It’s no secret that I’m a big believer in Facebook and have been for some time. It’s actually my biggest single name holding, mostly because it has risen so much from the purchase point. I do think the stock is well on its way to recover after falling significantly like most other internet related stocks. At this point, I do think there is still a lot of growth ahead for Facebook and while it’s not as cheap as it was a year ago, FB is certainly a no-brainer when trading at a comparable valuation to ADBE.
Next earnings release: July 24th 2014
Short Adobe (ADBE)
Adobe is one of those companies that is trying to adapt to a cloud-based world and is struggling in many ways to get it done. I do think they’ve done some things right but overall, it’s not a very encouraging story and it certainly does not warrant its current valuation making it a fairly straightforward stock to short.
Next earnings release: June 17th 2014
Disclaimer: Long Facebook (FB)
