Candidates for the Portfolio Reshaping
Here’s my list of tickers that I have gathered over the last 3.5 months, that could lead me to replace companies in my existing portfolio:
AAP AAPL AB ABC AC ADBE ADI ADM ADP ADSK AEO AEP ALV AMN AMT AMX ANAD ANF ANN APA APD APH ARO ASF ASGN ASR ATI ATMI AUY AVX AVY AXP AYE AZO BA BAX BBSI BBY BDX BELFB BEN BGG BHE BHI BHP BLL BMS BRCM BRKA BRKS BRO BSX BVF BWA BWP CA CAH CALM CAT CBE CBG CCK CCL CDI CDNS CLX CME CMI CNH CNS COG COGO COGT COH COHU COST CPB CPWR CR CRK CRMH CROX CRS CRYP CSX CTAS CTSH CUTR CVX CW CY CYNO DE DEO DFG DLM DNB DOV DRYS DUG DUK E ECA ED ELRC EMR EOG EPB EPD EPE ESIO ESRX ETE ETN ETP ETR EXAR EXC EXPE FAST FBN FDO FDX FLEX FOE FORM FRPT FRX FSLR FTE FTO GD GFF GG GIS GNCI GNTX GOOG GPS GSIG GWW HES HI HLX HNZ HON HPQ HTCH HY IAG IBM ICE IM INTC IPAS IPG IR ISIL ITG ITW JCG JCI JNA JNJ K KALU KBR KCI KEI KFT KLAC KMB KMP KO KR LH LIMS LINE LOJN LUFK LUV MAN MCK MDT MEI MGG MHK MHP MHS MICC MLM MMM MMP MOLX MON MRO MSFT MTE MTSN MTW MUR MW MXIM NBL NDAQ NE NESN VX NKE NOK NOVL NPK NTRI NTY NUAN NVDA NVTL NYX ODC OI OKE OKS OPVW OPXT ORCL OXY PAA PAYX PBI PBR PCCC PCLN PCP PENX PKE PL PLCM PLXS PMTI POT POWI PPG PSE PSEM PSPT PTEC PTEN PXD QCOM RACK RFMD RIMG RNWK RTEC SATS SBAC SBUX SCX SD SEE SFN SHW SIAL SIGM SKX SLGN SMBL SNPS SO SPLS SPTN SRCL STJ STMC STMP STO STR SUN SWK SY T TAP TDK TECD TEF TEG TEX TGM TJX TMO TNB TNH TOMO TOT TRAK TRID TSCM TSN TSO TSRA TTC TUNE TWB TWLL TXN UMW UN UNP UPS URS USU UTX VAR VE VFC VLGEA VOXX WAG WAT WBSN WDC WFR WMB WMT WU XRTX XTO YHOO ZMH ZNT ZRAN
Long list. I’m beginning to think that I get more ideas when things are bad. But this list will have to be evaluated for :
- Survivability
- Valuation, and
- Likely industry performance.
We’ll see how that shakes out. Now to dig into these candidates.
January 20th, 200910:22 am at
Whatever you do, don’t buy and hold DUG. These double inverses dramatically underperform because of the compounding effects.
January 20th, 200910:38 am at
Kieran, that one is a mistake. Hand transcribing 330 tickers has great potential for error.
January 20th, 200910:42 am at
Regarding your existing portfolio, you’ve sometimes held FXF and other Proshares Currency funds. Based on the following excerpt, does it seem to you that these funds are too dependent upon the solvency of JP Morgan? “The Trust has no proprietary rights in or to any specific Swiss Francs held by the Depository and will be an unsecured creditor of the Depository with respect to the Swiss Francs held in the Deposit Accounts in the event of the insolvency of the Depository or the U.S. bank of which it is a branch. In the event the Depository or the U.S. bank of which it is a branch becomes insolvent, the Depository’s assets might not be adequate to satisfy a claim by the Trust or any Authorized Participant for the amount of Swiss Francs deposited by the Trust or the Authorized Participant, in such event, the Trust and any Authorized Participant will generally have no right in or to assets other than those of the Depository. In the case of insolvency of the Depository or JPMorgan Chase Bank, N.A., the U.S. bank of which the Depository is a branch, a liquidator may seek to freeze access to the Swiss Francs held in all accounts by the Depository, including the Deposit Accounts. The Trust and the Authorized Participants could incur expenses and delays in connection with asserting their claims. These problems would be exacerbated by the reality that the Deposit Accounts will not be held in the U.S. but instead will be held at the London branch of a U.S. national bank, where it will be subject to English insolvency law. Further, under U.S. law, in the case of the insolvency of JPMorgan Chase Bank, N.A., the claims of creditors in respect of accounts (such as the Trust’s Deposit Accounts) that are maintained with an overseas branch of JPMorgan Chase Bank, N.A. will be subordinate to claims of creditors in respect of accounts maintained with JPMorgan Chase Bank, N.A. in the U.S., greatly increasing the risk that the Trust and the Trust’s beneficiaries would suffer a loss.”
January 20th, 200911:00 am at
Eric, that’s an interesting truffle that you have dug up. I’m not using any of the Proshares currency funds now, but I have in the past. Unlike ETNs, ETFs are not pricing in counterparty risk — this raises the interesting issue of whether they should trade at a discount.
It also points to some sloppiness on my part… I assumed that they invested in high-quality short-term foreign currency instruments that they took custody of (if only electronically), and that seems not to be the case.
Do you have a URL on this pointing to the prospectus as a whole?
January 20th, 200911:04 am at
wait, got it.
http://www.currencyshares.com/Content/pdf/FXF-Prosp.PDF
January 20th, 200912:00 pm at
I copied that particular passage from page five of the most recent 10-K filing. I used to own them myself until I read that. If something happens to JP Morgan (and it just might), the status of these popular currency ETFs as unsecured creditors would be front page news.