The Covestor Concentrated GARP portfolio had a good month of returns in September, despite the uncertainty over the U.S. government’s finances.
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Heading into the fourth quarter, investors are anxious about the dysfunction of the U.S. political system. October will be eventful as earnings season gets underway.
Here’s a rundown on the portfolio’s investments:
Corelogic (CLGX) provides data about real estate related industries. A large part of their data centers on property and mortgage information services. In addition, they provide credit information in a variety of industries as well. The company had a good earnings report, raised and updated their guidance for 2013, and upped their buyback.
Cass (CASS) Information Systems provides information, invoice, and payment processing services to a wide variety of enterprises in the United States. Cass also has a small banking division as well. The company reported earnings in line with Wall Street forecasts.
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Dolby Laboratories (DLB) provides audio and video products for the entertainment industry on a global scale. Much of their revenue comes from licensing their technologies on personal computers, laptops, tablets, and smart phones.
In addition, they make sound systems for a wide variety of customers, from movie studios, theatres, and network and satellite television providers. The company reported earnings which were better than expected estimates but reduced guidance for the rest of 2013.
Jamba Juice (JMBA) is a health food and beverage retailer with a presence in 26 states domestically, as well as operations in Canada, the Philippines, and South Korea. The company reported earnings on August 5, 2013, and recently added to their credit agreement with Wells Fargo (WFC).
Cash America (CSH) is the largest operator of pawn shops in the United States. The company reported disappointing earnings for the second quarter of 2013, but has since purchased more pawn shops in highly regulated states.
Telefonica Brasil (VIV) is the second largest telecom and cable provider in Brazil. With the recent currency and equity market weakness in Brazil, the stock is a new addition to the portfolio.
The investments discussed are held in client accounts as of September 30, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable. Past performance is no guarantee of future results.
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