Time to start doing a little play, shall we?
The 5S-5S is a new series that is being brought today. It consists of a portfolio of 5 stocks from 5 different sectors. Today is the day we choose stocks based on a set of rules. Each stock will have a complete case study to be presented later on.
Disclaimer
- Investing involves risks, and the value of your investment will fluctuate over time and you may gain or lose money;
- Past performance is no guarantee of future results;
- Not financial advice.
Portfolio’s Rules
- The 5 Sectors will be chosen according to TipRanks’ statistics, from the 1st to the 5th, and reevaluated monthly. News and updates can come at any time;
- Only 1 stock will be chosen per sector;
- A company will only enter the portfolio if it has fundamentals (valuation, growth, profitability, and an expectation of return);
- A company will only leave the portfolio if its sector is no longer listed among Top-5 or it loses fundamentals;
- The initial portfolio will have a virtual value of $100,000 (ten thousand dollars) that will be equally divided among the 5 stocks;
- The companies must be traded within the United State’s stock market.
Stocks picking – 5S-5S
1 – Sector: Services
This sector is divided into Primary (related to raw materials such as industry, mining, and oil), Secondary (Business, producing/selling goods), and Tertiary (service sector). This is one of the largest sectors of any developed economy.
“Crescent Point Energy is a leading North American oil producer focused on the development of high-return resource plays. Based in Calgary, Alberta, we aim to create value for our shareholders by advancing our asset base through exceptional operational performance cantered on safety, costs, and the environment.” (source: About Us | Crescent Point (crescentpointenergy.com)
Energy prices are being pressured by the Ukrainian war. The company is trading way below its sector’s metric. The financial outlook is positive and the recent acquisitions of gas regions in Canada can lead to higher revenues.
Even though the company keeps delivering profit and a good cash flow, it seems that the price has gone down way too much and has not yet recovered.
2 – Sector: Healthcare
ASSERTIO HOLDINGS
“We are a leading commercial pharmaceutical company bringing differentiated products to patients. We have a robust portfolio of branded prescription neurology, inflammation, and pain medications. The company has grown through business development including acquisitions, licensing, and mergers. We are looking to leverage our commercial excellence to be the partner of choice. We are interested in products across all therapeutic areas including our current focus Assertio Holdings » Overview (assertiotx.com)”.
3 – Sector: Technology
PHOTRONICS
“We are the worldwide leaders in photomask products and services, from mainstream nodes to leading-edge technologies, for integrated circuits and flat panel displays. Global manufacturers rely on our expertise to ensure the quality and performance of their products.” About Photronics – Photronics Inc)
4 – Industrial Goods
STAR BULK CARRIERS CORP.
“Star Bulk is a global shipping company that provides high-quality transportation services for dry bulk cargoes. On a fully delivered basis, the Star Bulk fleet comprises of 128 modern vessels built in world-class shipyards with an average age of approximately 9.9 years. Our fleet’s composition is highly diversified ranging from Supramax vessels to Newcastlemax vessels and has a total capacity of more than 14 million DWT.” (Who we are | Star Bulk is a global shipping company that provides high-quality transportation services)
5 – Basic Materials
ALPHA METALLURGICAL RESOURCES
“Alpha Metallurgical Resources (NYSE: AMR) is a Tennessee-based mining company with operations across Virginia and West Virginia. With customers across the globe, high-quality reserves, and significant port capacity, Alpha reliably supplies metallurgical products to the steel industry.
Alpha Metallurgical Resources is committed to operating safely, efficiently, and responsibly, with customer service second to none and an ongoing focus on continuous improvement.” About Us – Alpha Metallurgical Resources (alphametresources.com)
Final thoughts
There you have it, an editor’s pick of 5 stocks from different industries, that are worth considering. Naturally, there are many more good ones, and you should definitely continue with your research.
Whichever you choose, make sure to set realistic targets, and don’t be too greedy. One of the most important steps is to take profits when you have them.