Crossing Wall Street: Buy List for 2016
by Eddy Elfenbein
The five new stocks are Alliance Data Systems (ADS), Biogen (BIIB), Cerner (CERN), HEICO (HEI) and Stericycle (SRCL). I’ll have more to say about them next week. Don’t worry, I’ll go into full detail. I’ll also explain why I’m removing the deletions.
The six deletions are Ball, eBay, Moog, Oracle, PayPal and Qualcomm. Remember that we have an extra stock leaving this year due to the PayPal spinoff.
To recap, I assume the Buy List is equally weighted among the 20 stocks. The buy price for each stock will be the closing price as of December 31, 2015. The new Buy List goes into effect on January 4, 2016, the first day of trading of the new year.
The Buy List is now locked and sealed, and I won’t be able to make any changes for the entire year. I’ll have a complete recap of 2015 at the end of the year. I’ll also have more to say about our new buys, and I’ll give you new Buy Below prices.
As far as this year’s Buy List goes, there are only nine trading days left in 2015, and it appears that our Buy List will return to its market-beating ways. Through Thursday, our Buy List is up 4.09% while the S&P 500 is down 0.83% (not including dividends). This will be the eighth time in the last nine years that we’ve beaten the S&P 500.
The Manifest Investing “Take Away”
For now, here’s the preliminary tracking dashboard. (The “contributions” will be reset to $50,000 each at the beginning of the new year.) The overall return forecast is projected to outpace the market over the long term.
The newcomers bring considerable strength to the portfolio, bolstering the overall return forecast, quality and sales growth forecast. Overall quality is good and although we’d like to see a little higher average growth forecast — it’s above average and hunkered down for potential persistent doldrums.
All but one of the Buy List entries (Signature Bank) hail from the Value Line Standard Edition.
Bed Bath & Beyond (BBBY) was featured as a 5-star stock via www.morningstar.com just this morning.
The 1-Year total return forecast (ACE) for the Buy List 20 is a robust 16.3%.
Sector distribution and Size/Growth Diversification can be checked and continuously monitored using the tracking portfolio at: https://www.manifestinvesting.com/dashboards/public/crossing-wall-street-2016-buy-list
Speaking Of Tracking Portfolios
As Eddy mentioned, as the 2015 Buy List comes “spinning out of the turn” and heading to the finish line — it looks like the CWS Buy List will beat the market for the 8th time in the last nine years! Congratulations, Eddy.
Through 12/17, the S&P 500 (VFINX) is up 1.1% (including dividends) and the 2015 Buy List is up 5.2%.
Take us home, Eddy. Seasons Greetings and Merry Christmas, Everyone!