247Bull goes long Google & short Man United, & adds to its gold holding

247Bull goes long Google after its breakout above recent highs, and short Manchester United after its flotation on the NYSE. It also adds to its gold holding, as well as other positions. This article provides a full update on the 247Bull investment portfolio.

Purchases

Following its decent second quarter figures and the successful launch of its Nexus 7 tablet, Google’s shares have been on a tear. Since 12 July 2012, they have risen more than 20% to $677.14 breaking above their 4 Jan high of $670.25.

A 1 year chart of Google

A 1 year chart of Google

Chart courtesy of stockcharts.com

The next target for Google’s share price is the all-time high of $741 it reached back in November 2007.

Remembering the advice of Jesse Livermore, “stocks are never too high for you to begin buying or too low to begin selling”, Google has now been added to the 247Bull portfolio.

Another new addition to the portfolio is Dorchester Minerals, an MLP which generates its revenue from oil and gas and pays an annual dividend of over 8%.

We have also added to our holdings of Royal Gold, Franco Nevada, Yamana Gold, and gold bullion.

Shorts

For reasons outlined in our recent article, Is Manchester United the next Facebook? 247Bull is now short Manchester United.

The 247Bull portfolio

 

Portfolio as at 20 August 2012

NB: Assets marked with an asterisk form part of the tactical portion of the portfolio. This makes up around 30% of the 247Bull portfolio and takes advantage of specific trading opportunities.

Watch list

Some of the companies on the 247Bull watch list include: Cameco Corporation (NYSE:CCJ), ConocoPhillips (NYSE:COP), McDonald’s (NYSE:MCD), McEwen Mining (TSE:MUX), and Silvercorp Metals (NYSE:SVM).

The 247Bull investment strategy

The 247Bull portfolio utilises two types of investment strategy:

  1. A strategy for core holdings (discussed here), which are those positions held for the medium to long-term. These holdings make up around 70% of the portfolio.
  2. A tactical asset allocation strategy for the remaining 30% of the portfolio. This portion of the 247Bull portfolio takes profit from assets that have had considerable up-moves and reallocates it into those that are still undervalued by the market. The tactical portion of the portfolio also takes advantage of specific trading opportunities as and when they arise, and this website will continue to feature them.

Portfolio strategy for core holdings

As investors our primary goal is to understand the powerful long-term macro forces that shape the global economy and determine the direction of financial markets. The reason for this is simple: Almost 90% of stock market returns are driven by macro influences.

History shows that the really big money is made by identifying, and boarding these trends early, and then riding them until they come to an end. Continue reading…

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