As those of you who read my monthly report should know by now, I try to concentrate my holdings in companies that hold the potential for being game-changers.
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I continue to hold 3D Systems Corp. (DDD), the preeminent company in the field of 3d-printing, which holds out the promise of revolutionizing manufacturing worldwide in my opinion.
They have an extremely high (PE ratio of 132) as of April 1, but this is attributable to R&D expenditures necessary to stay on top, and the over 50 acquisitions they’ve made in the last three years. For those interested in specifics, I refer you to this article on Motley Fool.
This month I liquidated my positions in FireEye Inc. (FEYE) and Illumina Inc. (ILMN) when they crossed the moving averages that I’d preset for them. In general, I like to cut my losses short and let the winners run.
I am holding ProShares Ultra Nasdaq Biotechnology ETF (BIB), which is a leveraged ETF with holdings entirely within the biotech sector. In my opinion, biotech is in a continuing growth surge, one which shows no signs of abating.
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The Covestor Opportunistic and Adventurous portfolio had less-than-stellar performance this month, which at least partially was due to overtrading. As always, I try to learn from my mistakes, and intend to get out of equities only when they cross my preset, simple moving averages.
The market as a whole appears to me to be somewhat overvalued and due for a correction. When this might occur is anyone’s guess. I realize that my holdings will most likely drop faster than the overall market; I’m counting on my trading discipline to get me out before we incur too much depletion in capital.
DISCLAIMER: The investments discussed are held in client accounts as of March 31, 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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Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.