Investing


In this section you will find Fundamental Trends investment ideas, research, model portfolios 401(k) Alerts. Fundamental Trends offers investment ideas in three categories: Stocks, ETFs, Options & 401(k) Asset Allocation.

What truly makes this investment letter different is our approach to buying and selling which is managed for risk differently than most others. We make extensive use of “limit orders” and cash-secured put option selling to scale into positions and secure low costs basis.

Buying Exact Sciences LEAPs

I am currently listening to the Exact Sciences earnings call. The Anthem news is excellent. Revenue is going to be good. Kevin affirms test volume. Points out focus on controlling costs. Looks like company can be profitable by Q4 2016 or Q1 2017. I am buying the January 2018 $8 calls with a limit price of $2.50 for 1% of the Punch Card Stocks portfolio. Kirk Fundamental Trends http://kirkspano.ebizontech.biz/trades

Taking Profits on Puts on iShares Russell 2000 ETF – IWM

I am closing the puts on the iShares Russell 2000 ETF – IWM. Ahead of Janet Yellen, I want to take profits on these puts we bought a month ago. With only a month left of duration, I will be looking to roll into new put positions on any significant technical rally as I see the S&P 500 going into the lower 1600s and continuing to drag small cap stocks […]

Selling 3D Systems (DDD) and Stratasys (SSYS)

While this goes against a long nature of holding what I buy long-term regardless of price action, I spent the past 5 hours reading documents from both companies (yes, I’ve been getting up too early lately). I find it hard to believe that in an industry that is still in a supply and demand imbalance, and that is adding competitors – big ones HP, AAPL and start-ups with great technology […]

Buying Shares of Potash Corp – POT

Potash Corp is one of the most important agriculture companies on the planet. This sell-off is overdone. I will take the dividend as I wait for continued droughts to push demand for fertilizer and bad financial circumstances restraining competition. I am buying up to 2-4% of NAV. Buy shares of Potash Corporation – POT at market tomorrow around $15.50-16. Kirk Spano Fundamental Trends http://kirkspano.ebizontech.biz  

Buying Puts on iShares Russell 2000 – IWM

As we can see in my report “The Stealth Bear Market Crashes In” small cap stocks are doing the worst in this market environment. Therefore I am hedging my stock portfolios and using this as a swing trade. The position will be need to be risk managed and likely rolled come late January or late February. I am particularly concerned about the next few weeks in the stock market as […]

Selling puts on CHK, DDD, EXAS & MU

These trades are for the Retirement Income Options portfolio, each for approximately 2% of net asset value. These companies represent the risky components of that portfolio. If you are underweight these names in your equity portfolio, but already hold some, I believe you can add as well. In general the story on all five stocks are that the names are extremely oversold based on their inherent risks. I believe the risks […]

Buying TerraForm Power stock – TERP

I have been revising my lists of stocks the past few months in preparation for expanded trading and modeling in 2016. One of the stocks that is now on my Emerging Leaders list is TerraForm Power (along with a few other Yield Cos). I have added these vehicles because of how they are likely to perform similarly to MLPs back when there was growth in MLPs. As you know, solar […]

Selling half of First Trust Natural Gas ETF – FCG

Due to the recent OPEC news, I expect further downside in oil and gas stocks temporarily. Given that I am becoming more bearish, I am looking to add some dry powder to my portfolio. While we are down on the First Trust Natural Gas ETF (FCG) I am selling half of the position with the express intent of using that money to buy oil and gas stocks in the next […]

Taking Profit on Total stock – TOT

Due to the recent OPEC news, I expect further downside in oil and gas stocks temporarily. Given that I am becoming more bearish, I am looking to add some dry powder to my portfolio. Despite Total S.A. showing up as the strongest long-term oil major play outside of U.S. due to its assets, diversification and majority stake in SunPower, I am selling today for a small profit. I am selling […]

Taking Profits on Intel stock – INTC

As I mentioned a few days back, I am taking my profit now on Intel – INTC. We originally bought Intel for $25.52 on “Bucket Monday” Monday, August 24th the day that opened down over 1000 points on the Dow. Given the extreme nature of that event, we bought 10 stocks that morning. We have now sold some for heady profits. I expect further volatility and expect a bit more […]