News & Our Thinking

Weekly Investor

Weekly Investor – June 10, 2013

11 June 2013

A Balancing Act

Market Summary:  

The U.S. equity markets finished higher last week, all posting positive returns.  Although returns were modest, the U.S. is once again the shining star among world equity markets.  Last week, European, Asian and Japanese markets were all down.  Similar to last week, U.S. markets fluctuated throughout the week in reaction to any indication of the Federal Reserve’s plan for its stimulus plan going forward.  In the end, the markets pushed higher upon the heels of a supportive jobs report and continued Fed stimulus measures.  Looking ahead, investors hope for continued good news.

The S&P 500® was up 0.8% for the week.  The top-performing sectors in the S&P 500® Index included Telecommunications (1.9%) and Consumer Staples (1.6%), while bottom-performing sectors included Technology (0.1%) and Basic Materials (-0.3%). In the fixed-income market, the 10-year Treasury yield closed slightly up for the week at 2.2%.

We continue to seek those companies possessing identifiable catalysts, and focusing on those stocks with favorable odds.

Growth in New Markets

CTXSCitrix Systems, Inc. (CTXS) develops, sells and supports application delivery products such as GoToMyPc, GoToMeeting, GoToAssist, GoToWebinar and other systems within its online services division. One such way these products work is by transmitting screen pixels, keystrokes and mouse movements by encrypted channel. CTXS’s main application is compatible with any platform, thus allowing for widespread use. Product training is also offered as a service so customers can optimize use of its various solutions.

With its existing remote access business, the company continues to gain momentum. Having completed the acquisition of XenSource, Inc., CTXS is positioned to experience growth in the server and desktop virtualization markets.  CTXS is the only company to offer an end-to-end application delivery infrastructure for the delivery of applications to any user.  With positive feedback from our Main Street contacts, we believe CTXS will see significant growth from the fast and broad adoption of virtualization.  We believe shares of CTXS can out perform the market and its peers.

Top 10 Equity Holdings

Google, Inc. 5.5%
Lowes Co. 4.6%
CBS Corp. 4.3%
Gilead Sciences 4.3%
SunTrust Banks 3.9%
Danaher Corp. 3.8%
Forest Laboratories 3.5%
Oracle Corp. 3.4%
Procter & Gamble 3.4%
Qualcomm Inc. 3.4%

U.S. Equity Indices

Index 06/07/13 Week % Chg YTD % Chg
DJIA 15,248.1 0.9% 16.4%
NASDAQ 3,469.2 0.4% 14.9%
S&P 500 1,643.4 0.8% 15.2%
Russell 1000 G 748.7 0.5% 13.8%

U.S. Credit Rates

Index 06/07/13 05/31/13 12/31/12
3 Month T-Bill 0.1% 0.1% 0.1%
5 Year T-Note 1.1% 1.0% 0.8%
10 Year T-Note 2.2% 2.1% 1.8%
30 Year T-Bond 3.4% 3.3% 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.