We are trimming most of the energy company and adding to two below-average names with above-average expected returns. The energy company, which received an acquisition bid, could attract another bid. As it stands, the acquiring company didn't perform well initially and could rally too. With that said, the story has pretty much played out, and the acquiring company is not as cheap as the company it is buying and also has a lot of debt.
The buys both offer 50% or so to my one-year projected target. The consumer stock is a bit riskier, so its position size will end up smaller than the healthcare company. The trades yield some extra cash - not a bad thing right now in my view.
