When markets are as volatile as they have been, it's very challenging to commit to trades in advance of the market being open. With that said, the extreme volatility has created some opportunities for Top 20, while the decline in prices in general allows us to reposition the other two models.
In Top 20, we are trimming one of our weaker names over the past few months that seems to be hanging in a bit better than other stocks due to short-covering. On the other side, we are taking some of the cash raised a couple of weeks ago as well to buy two names that offer similar or better returns now. One is extremely oversold as well.
In CG/B, we are moving our equity exposure back to its maximum of 75% by adding to one of our core holdings. The stock trades at 8X trailing earnings, has no net debt and is valued at just 1.6X its tangible equity. It also has a 3.4% dividend yield. It's oversold and offers 58% to my target. Even if my target is off by 20%, I find the stock to be very attractive for conservative investors.
In SSETF, we are using a little cash and the proceeds from a trim in one of our sector ETFs to add to our recently established Small-Cap position.
Comments