Beta than the S&P 600 – July Performance

Beta than the S&P 600 – March Performance
Beta than the S&P 600 – June Performance
Beta than the S&P 600 – May Performance

July Performance

June and July have been very good for the portfolio led by gains in LGI Homes in June and Cliff’s in July. Cliffs is up 26% since the beginning of June which has really helped the portfolio recover to almost even with the S&P 600. Only 5 months to go.
Beta than the S&P 600

Portfolio Holdings

After selling LGI Homes (a bit too soon), Cliffs is now my largest individual position. I added a new position in Dycom in July.

About Dycom:

The company offers various specialty contracting services, such as engineering, construction, maintenance, and installation services comprising placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. It also provides tower construction, lines and antenna installation, and foundation and equipment pad construction for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable television system operators.

The stock fell almost 25% in May which attracted my attention. I didn’t buy in until mid-July around $90 and have since added to the position over the past few days with this recent dip.

The stock currently trades at a forward PE of about 15x. Given the company has experienced double-digit growth over the past few years, that is an attractive multiple.

On my Kroger trade, I am up almost 10% since the Whole Foods/Amazon deal announcement. Expectations seem pretty low for Krogers over the next few quarters so I might continue to hold to see if we get a pop on an earnings surprise.

Very challenging market right now to find value.