Portfolio Update 2/27/21 8AM
It’s been a month since I posted my last portfolio update found here; https://discussion.fool.com/retirementdough-portfolio-jan-2021-3…
I have found doing these updates is helping me keep better records of my investing thought processes over time. Much like keeping a journal in life when you re-read in the future it helps you remember what your thoughts were at the time of writing. Hopefully others find this helpful as well.
Current Portfolio as of 2/27/21. Change since 1/29/21 +1.4% YTD +20.1% VTI Monthly +3.1% YTD +2.8%
I have decided to just benchmark versus the VTI which is Vanguard Total Stock Market Index Fund, which is probably what I would put my money into if I did not want to spend time researching stocks. VTI includes all 3600 stocks traded in market.
Stock % Portfolio % Portfolio % Change Market Change Current Previous Portfolio Cap (B) MC TCNNF 18.5 16.1 +2.4 5.5B +0.8B EXPI 15.3 14.4 +0.9 8.1B +1.0B TDOC 12.1 13.9 -1.8 31.0B -4.7B ZM 11.0 10.9 +0.1 108.9B +0.8B DOCU 9.8 10.2 -0.4 41.6B -1.6B CRWD 8.7 8.7 0 47.8B +0.6B DDOG 8.6 8.3 +0.3 29.4B -1.4B NET 4.5 0 +4.5 22.9B GRWG 0.2 0 +0.2 2.3B CASH 11.2 17.5 -6.3
New positions since last portfolio update: GRWG, NET (previously owned)
Exited positions since last update: None
Trades between 2/1-2/26 Bought: GRWG 2/2 47.90 GRWG 2/22 52.76 NET 2/16 86.01 NET 2/17 80.50 NET 2/23 74.01 EXPI 2/23 66.23 **Split adjusted price DDOG 2/23 95.01 TDOC 2/25 217.20 Sold: EXPI 2/8 148.68
Thoughts on trades and companies for the month.
None of my stocks changed ranks this month. That is somewhat unusual. I bought back into Cloudflare after a really good earnings report. I also add one new starter position in Grow Gen. My current allocation of portfolio percentage rankings 1-9 represents what companies I feel are best poised for price appreciation this year.
My top two stocks have allowed me to have very significant returns so far this year. I would have been up more this month but Teladoc stock was down big on what I believe was a good earnings report obviously others in the market did not feel the same. In March five of my top six companies report earnings. Should be an interesting ride with the way the market has been acting lately.
This month I sold and bought back a small percentage of my position in EXPI. I always fight myself when I have a company that’s run up in price quickly. However I am gaining confidence in the company as I continue to learn more about it, so when it dipped 10% from where I had sold earlier in the month, I bought back the small position. I added a small amount of datadog after what I thought was a good earnings report, that purchase price was about the same as when I sold a larger percentage of Ddog in early January. I recently added to my Teladoc position after its earnings report.
I most likely will continue to add to my portfolio position after earnings reports and deplete my cash holdings. If I interpret the earnings report as favorable but the price dips, I will be looking to buy. This should be a busy upcoming month for my portfolio on buying.
TCNNF number 1 position, overview of company can be found here https://discussion.fool.com/trulieve-update-34714389.aspx Current sales are 485m with market cap of 5.5B. It is calling for a 91% revenue growth y/y for next quarter, its GAAP gross margins are 65%. With democratic party gaining majority in house, senate and presidency legalization of cannabis is on the way. About to become legal in US to bank and the stock will trade on the US exchanges. When that happens the value of this high growth, profitable company will sky rocket IMO. Does have some debt, very manageable amount considering cash flows. Reports earnings 3/23.
EXPI number 2 position, self proclaimed amazon of real estate. First company in real estate market to utilize cloud based technology to operate. Significant reduction of cost which are passed on to agents making them very popular and quickly growing real estate brokerage. Current sales are 1,480m with market cap of 8.1B. Sales revenue predicted to grow 99 y/y next quarter. Gross margin low compared to all of my other companies at 9.9%. Huge TAM. Very little debt. Major international expansion ongoing, Puerto Rico, Brazil, Italy and Hong Kong in the first quarter of 2021. Reports earnings 3/11.
TDOC number 3 position . Much discussed on this board. Just posted earnings notes https://discussion.fool.com/teladoc-earnings-notes-34762514.aspx…. I am on record saying I thought it had the most potential for 2021 appreciation. Massive TAM. Disruptor company IMO. Downsize is debt fueled expansion.
ZM is my 4th position. Overly discussed stock on the boards. Sales revenue at 1,960m and market cap at 108B. Sales revenue growth predicted at 333% next quarter y/y. Gross margin of 70%. No debt. Just raised 2B dollars. I just feel it will continue to grow (obviously not as fast as 2020) and its margins are good, with no debt and a boat load of money to do deals/buyouts. I full expect it to end 2021 higher than it began. I do understand why many feel that the growth will slow tremendously if just relying on video. Although the company was growing rapidly before Covid and their sales internationally seem to be up considerably still. Earnings coming up next week 3/1.
DOCU is my 5th position. Sales at 1,300m with market cap of 41.6B. Projected revenue growth for next quarter is 50% y/y and it has a 74.5 percent gross margin. This product is one that I use more and more every day in my business. Has some debt. Reports earnings 3/11.
CRWD is my 6th position. CRWD sales are 761.6m, should grow revenue around 70% next quarter y/y. Gross margin is 72.9 percent. It’s market cap is 47.8B. No debt. Made me a lot of money in 2020. A Saul favorite. Earnings report on 3/16.
DDOG is my 7th position. Added back a small amount after earnings. I thought it was good earnings report. Saul favorite, a lot of information on the company on these boards. Very little debt. I believe when they start to show increased revenue growth in future do to lapping CoVid earnings downturn it will begin to accelerate in stock price.
NET is my 8th position. . I credit the power of this investment board to my re-entry into this company. After earnings many posters gave good insight. The amount of customer growth for the quarter was outstanding. Revenue follows customer growth. 50% revenue growth makes this one of my lowest revenue growth stocks, but I believe that will soon be on the increase.
GRWG GrowGeneration Corporation is very small starter position. GrowGeneration Corp. is the nation’s largest chain of specialty hydroponic and organic garden centers with 39 locations across 11 states. They reported preliminary record full-year 2020 revenue of $192 million, versus $80 million for 2019, an increase of 140%. As the Company continues to outpace guidance, it is increasing its 2021 revenue guidance range to $335 million-$350 million. Same store sales were up 58% yoy. Strategic acquisition to fuel triple digit revenue growth. This is obviously a low conviction stock for me at this time.
Percent gain/loss for companies for month & year Feb% YTD% TCNNF +16.0 +42.8 EXPI +13.3 +91.1 GRWG +5.6 +13.5 NET +0.9 -3.5 ZM +0.4 +9.8 CRWD +0.1 +2.9 DOCU -2.7 +1.9 DDOG -7.1 -3.3 TDOC -23.8 +0.6
As always any suggestions or questions on portfolio structure feel free to email me. Any questions on why I like or dislike certain companies post it to the board with exception of TCNNF (just email me on that one).