In CG/B, we are doubling the most recently added position following their earnings report this week. It offers over 50% to my one-year target. To make room, since we are invested at the maximum of 75% stocks, we are trimming a Healthcare name and a Financial, both of which offer less than 30% to my one-year target.
In Top 20, we are also increasing this same name as well as our other recent purchase, which also offers over 50% to my one-year target. We are adding an Energy name that I have long followed. The company is a technology play, as a provider of material used in E&P as well as other services and related products. The plunge in natural gas prices had been weighing on the stock, and the earnings release last week confirmed some near-term challenges. The stock was pushed to an extremely oversold level and offers over 50% return to my target, which was reduced to reflect the near-term challenges. The reason I am adding the name is that I don't see a demand issue. Despite the reduced outlook, the company will likely continue growing like gangbusters, though at a less robust level than previously anticipated. Even after the addition, we are still modestly underweight the sector.
To make room for these buys, which so far in 2012 range from up 4% to down 17%, we are selling a small Industrial (up 16%, moderately overbought and offering 38% to my one-year target) and trimming two names that have rocketed this year. The Industrial we are trimming is up 28%, moderately overbought and offers 32% to my target, while the Healthcare name is up 20%, moderately overbought and offering 42% to my one-year target.
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