AlphaProfit Premium Service: Sector Newsletter
New Recommendations and February Report
February 12, 2016
Dear Valued Subscriber,
The February Report of the AlphaProfit Sector Investors’ Newsletter™ is now available in the Subscriber Login section of alphaprofit.com. View February Report
Here are some of the items discussed in the Report:
Stock Searchlight:
Carnival Corp., E*Trade Financial, Southwest Airlines, Regions Financial, and Xerox Corp. make the Stock Searchlight cut. Page 3 shows the recommended entry & exit prices for these recommendations along with the status of stocks recommended last month.
Previously recommended CBS and Exelon shares exited with gains while Deutsche Bank, Viacom, and Rent-A-Center shares were stopped.
See: Results from previous Stock Searchlight selections
Market Review & Outlook:
The relentless decline in oil & gas prices is calling the financial viability of energy companies and their lenders into question. As expected, U. S. companies earned less during the fourth quarter of 2015 than they did a year ago. Earnings in the current quarter too are expected to be lower than a year ago. Investor risk aversion has increased in this milieu. Disconnect between what Federal Reserve officials say and what investors expect the Fed to do in response to global economic worries is causing angst. On February 11, the S&P 500 dropped below the recommended 1835 trigger for increasing allocation to stocks by 5% to the 35-60% range. The February Report starts with the ‘Market Review & Outlook’ section.
Construction & Housing:
Impacted by rising labor costs and bad weather, homebuilders posted checkered earnings reports. The recent drop in U. S. interest rates augurs well for the group. Comments on construction & housing start on page 4.
Real Estate:
While prospects for office and retail REITs are tied to U. S. economy, REITs in other niches such as data centers, health care, and storage warehouses have secular growth possibilities. Comments on real estate start on page 7.
Telecom Services:
The Internet of Things offers telecom service providers demand growth and service differentiation opportunities. The defensive characteristics of telecom services stocks can limit their performance in strong markets. Comments on telecom services are on page 8.
We welcome your comments.
Best regards,
Sam Subramanian PhD, MBA
AlphaProfit Investments, LLC
Ideas. Insights. Results.
http://www.alphaprofit.com
