Weekly Investor – May 20, 2013
Google Surprises
Market Summary:
The U.S. equity markets continued their winning streak. In fact, both the S&P 500® and the Dow Jones Industrial Average reached and exceeded record highs last week. However, overseas, it was not all smooth sailing. While the Eurozone shrank for the sixth consecutive quarter, the National Bank of Greece was upgraded by Fitch after successfully raising capital. The week also brought good news for Google Inc. (GOOG). The company hosted its annual developer conference and disclosed its new music-streaming services which boosted shares 3.29%. Looking forward, investors will pay close attention to any actions by the Fed after a series of stronger-than-expected reports may lead to tightening.
The S&P 500® was up 2.1% for the week. The top-performing sectors in the S&P 500® Index included Financials (3.7%) and Industrials (2.2%), while bottom-performing sectors included Telecommunications (0.4%) and Energy (-1.0%). In the fixed-income market, the 10-year Treasury yield closed up for the week at 2.0%.
We continue to seek those companies possessing identifiable catalysts, and focusing on those stocks with favorable odds.
New Management
Amgen Inc. (AMGN) is a biotechnology company that engages in the discovery, development, manufacture, and marketing of human therapeutic products in the areas of cancer care, inflammation, nephrology, and bone diseases primarily in the United States, Europe, and Canada. AMGN was founded in 1980 and is headquartered in Thousand Oaks, CA.
AMGN has a new management team focused on implementing change across the organization, specifically within its research and development department. Additionally, positive data point feedback regarding the stability of AMGN’s base biotechnology business offers the potential for positive surprise as the company’s pipeline matures. We feel AMGN’s attractive valuation and positive change stemming from increased efficiency measures offer favorable odds to our clients.
Top 10 Equity Holdings
| . | |
|---|---|
| Google, Inc. | 5.6% |
| CBS Corp. | 4.5% |
| Lowes Co. | 4.5% |
| Gilead Sciences | 4.3% |
| Allstate | 4.0% |
| Danaher Corp. | 3.8% |
| SunTrust Banks | 3.8% |
| Qualcomm Inc. | 3.5% |
| Oracle Corp. | 3.5% |
| Procter & Gamble | 3.4% |
U.S. Equity Indices
| Index | 05/17/13 | Week % Chg | YTD % Chg |
|---|---|---|---|
| DJIA | 15,354.4 | 1.6% | 17.2% |
| NASDAQ | 3,499.0 | 1.8% | 15.9% |
| S&P 500 | 1,667.5 | 2.1% | 16.9% |
| Russell 1000 G | 763.9 | 1.7% | 16.1% |
U.S. Credit Rates
| Index | 05/17/13 | 05/10/13 | 12/31/12 |
|---|---|---|---|
| 3 Month T-Bill | 0.1% | 0.1% | 0.1% |
| 5 Year T-Note | 0.8% | 0.8% | 0.8% |
| 10 Year T-Note | 2.0% | 1.9% | 1.8% |
| 30 Year T-Bond | 3.2% | 3.1% | 3.0% |
| Prime Rate | 3.3% | 3.3% | 3.3% |
This newsletter presents selected recommendations from portfolio managers of Argent Capital Management LLC, a registered investment advisor. Opinions reflect the portfolio manager’s judgment on the date above and are subject to change. A list of stocks recommended by Argent is available upon request. You should not assume that these recommendations are or will be profitable. In the course of it’s business, Argent’s client accounts may be buying and selling these stocks.
