I have had some IBM shares throughout 2015 and 2016, but I have sold them in 2016 to realize a decent profit. It wasn't caused by bearish view, rather I saw better opportunities elsewhere. Q4 numbers were released, and from a quick view they did look in line with company plans. But stock dropped after hours so I reentered IBM with a modest position. My simple intrinsic valuation requires it to have 1% real earnings growth, and given the progress in turning around the company and shareholder friendliness of the management, I have confidence that they will be able to exceed that.
I bought into Wells Fargo in 2016 and exited position after Trump rally. This was mostly to take profits and to see how much effect will the scandal have on performance. I did not see much worrying signs, therefore I reentered with average price below 54. It is only modestly lower than my intrinsic valuation of $60, but I think that higher growth and rates will make assumptions in my model conservative. At this price, though, I am not inclined to buy much of WFC.
Going further into the earnings season, I expect AAPL, GILD and VRX to go up earnings. We shall see...
I bought into Wells Fargo in 2016 and exited position after Trump rally. This was mostly to take profits and to see how much effect will the scandal have on performance. I did not see much worrying signs, therefore I reentered with average price below 54. It is only modestly lower than my intrinsic valuation of $60, but I think that higher growth and rates will make assumptions in my model conservative. At this price, though, I am not inclined to buy much of WFC.
Going further into the earnings season, I expect AAPL, GILD and VRX to go up earnings. We shall see...
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