John Walsh’s Monthly Trading Record
“As this point into my Rolex challenge, I have made 36 trades in total with 21 winners, 7 losers and 8 currently running which leaves my account for this challenge currently (not including the live running trades) at a profit of + 37.15% (Editor interject — that is a cracking return John!). The Rolex is not on the wrist yet, but as they also say: “Rome wasn’t built in a day”…” The trades from last month that are still running are: Life Technologies (LIFE), Paychex (PAYX), Colgate–Palmolive (CL) and Starwood Hotels & Resorts Worldwide (HOT). I also have four other new positions running at the time of writing as I feel, for now, the selloff in the equity markets seen in early December is over. These are Brinker International (EAT), Autodesk (ADSK), Intuit (INTU) and Mondelez International (MDLZ). As this point into my Rolex challenge, I have made 36 trades in total with 21 winners, seven losers and eight currently running which leaves my account for this challenge currently (not including the live running trades) at a profit of + 37.15% (Editor interject — that is a cracking return, John!). The Rolex is not on the wrist yet, but as they also say: “Rome wasn’t built in a day”… So, on to 2014… My plan is still to run my daily scan that I have mentioned in previous months which helps me take the emotion out of my stock picking and gives me a place to start my research. “A man with no plan is a man with no future” — I’m full of the sayings this month, aren’t?! I have five stocks that I think are ones to watch next year and here they are: Las Vegas Sands (LVS) – A developer of integrated resorts that feature accommodation, gaming, entertainment and retail, convention and exhibition facilities which, at the time of writing has a Market Cap of $62.75bn and whose stock price is up 65.88% YTD having increased earnings per share (EPS) every quarter so far this year. It still has a long way to go to get to its all-time highest stock price of $138.93 back in Oct 2007, but 2014 could very well be the year it gets there… Under Armour (UA) – Is a developer, marketer and distributor of apparel, footwear and accessories for men, women and youths. The company’s products are sold worldwide and are worn by athletes at all levels. At the time of writing, the company has a Market Cap of $8.81bn and the stock price is up 72.45% YTD being in a clear uptrend since March 2009.
Who am I to argue with that? I can only see an even stronger stock price in 2014. TripAdvisor (TRIP) – The online travel research company which, at the time of writing, has a Market Cap of $12.68bn and whose stock price is up 94.13% YTD with a stellar recent record in EPS growth has, in my opinion, an increasingly unassailable online presence which I think will only continue to grow in 2014 and so propel the stock price higher. Gilead Sciences (GILD) – The research based Biopharmaceutical company that discovers, develops and commercialises medicines has seen its stock price rise 94.44% YTD. The US Food and Drugs Administration recently approved their drug called Sovaldi, which is a treatment for Hepatitis C. With a solid uptrend on the chart, I only see more upside to come in 2014. Constellation Brands (STZ) – The wine maker and also marketer of imported beer in the United States which, at the time of writing, has a Market Cap of $13.125bn and whose stock is also up 95.87% YTD. The uptrend is longstanding and I believe will keep going well into 2014. As you can no doubt see from the above, I’m very much a technical trader who follows the charts, looking for momentum but with also a touch of fundamentals added in in order to help me see where the company has been and where it is likely to go. Basically, at the centre of my trading is “The trend is your friend”! That’s enough from me for this year anyways. I hope it has been a prosperous one for everyone and I look forward to writing my next piece in the New Year! Please continue to follow me on Twitter @_JohnWalsh_ where I do my best to keep everyone up to date with my trades as I open and close them plus any other thoughts I may have regarding trading. Remember: (for the last time this year) you control the trade; the trade does not control you. John
88 | www.financial-spread-betting.com | January 2014