Friday, March 4, 2011

Still Adding Shares

I'm not spending a lot of time worrying about the events happening in other parts of the world.  Sure, they are having some effect on the market, but a pullback was imminent.  This only gave the market an excuse in my opinion.  Now if we see a carry over effect and it causes fuel prices to spike (they already have, but I'm talking gasoline at $5 kind of spike), then I'd be concerned.

We're right in the middle of earnings season, and most of the stocks I own are reporting on the late end (small caps often do, I have no idea why).

I added shares of Jamba (JMBA) last week at $2.24.  This will be it for me prior to earnings.  If we see a sell off post-earnings and shares get closer to $2.00 or below, then I could see myself adding again.

I also added yesterday to Adams Golf (ADGF).  I really like the opportunity with this company.  I think they have some great new products that the market is just finally realizing, and they have some strong players on staff who are promoting the brand well.  The sport has struggled in the past few years, but any improvement will only help their sales.  Tiger Woods has struggled, and that is huge for the sport.  If he can find his game soon (and I know he will) the sport will benefit greatly.  We also have the situation of the Acushnet spinoff from Fortune Brands.  This will mean that Titleist-Footjoy will be a separate entity and could be a publicly traded company.  This would be the best scenario for us here.  Adams is not widely followed, and thus under appreciated.  Bringing a major player like Titleist to the market would have many analysts and investors taking a look at the industry, and they will discover Adams.

I added shares yesterday at $5.92.  I'm pretty happy with my position in this one (started buying in the high $4's).  I would add if it drops of course but own enough to be satisfied if we see a substantial move.

Hopefully earnings are solid for both of these names.

Disclosure: Long JMBA, ADGF

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