P/E Compression (and dividend divergence) Trade -- Short NASDAQ (QQQ) / Long Dow Jones Industrials (DIA) [Equal Dollar]
Thesis: In a mini-deflationary event, dividend, low P/E stocks should outperform high P/E, low dividend stocks
Apple Mobile Phone Wars Trade -- Long Apple (AAPL) / Short Research in Motion (RIMM) [Equal Dollar]
Thesis: Apple's market share of the mobile phone market is only 5%. RIMM has not released a competitive phone in years -- old technology.
Ag Boom Trade -- Long Mosaic (MOS) / Short Whole Foods (WFMI) [Equal Dollar]
Thesis: Food input costs will continue to increase helping Mosaic's demand, pressuring margins of grocery chains like Whole Foods.
Exxon underperform Trade -- Long Suncor (SU) / Short ExxonMobil (XOM) [Equal Dollar]
Thesis: Exxon continues to barely replace reserves on non-acquisition basis. The only thing propping up the stock is it's cash flow and share buybacks. Puchase of XTO energy will pay dividends in the long run but I expect Exxon to underperform more highly levered players like Suncor.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment