We are doing some earnings season rebalancing in Top 20. While not every decline is a buy, nor is every rise a sell, I do like to use the volatility to reposition when appropriate. In this case, we are adding to two positions we had recently trimmed at higher levels. We are also adding to another position that has increased since we bought it but looks promising still. Finally, we are trimming a stock.
On the buy of the Consumer name, the quarter was very sloppy in my view, but my target, which looks out into 2014 and 2015 projected EPS, actually increased a bit to 83 . The stock has dropped about 10% or so since we trimmed it. On the Healthcare name, while I certainly regret not having trimmed more in retrospect, I think it makes sense to replace some of the stock we sold. My target on this stock is 30 still after the report, which was ok but didn't justify the big run-up. On the Energy name, which reports next week, my target is 64. Finally, on the sell, the quarter was good, and the story remains on track, but my target, which is conservative, remains at 20 for now, though I may increase it to 22. Still, even there, the position is a bit larger than I think is justified, with the stock up almost 19% in the five weeks since we bought. The stock, which is heavily shorted, is a little overbought too.