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At the moment, the stock market is unpredictable and volatile. The season for quarterly results is going on. Companies report their performance for the previous quarter along with a forecast for the next quarter. Usually, the stock price of a company with a good forecast will go up, and the price will go down when the forecast is bad. Because of the current environment, stocks with bad results will be punished very badly, and stocks with good results will not go up too much.
On Tuesday, there was a Fed meeting about the interest rates. The meeting hinted that there will be at least 4 interest rate hikes this year. It is bad for the market because it was predicted that the interest rates will hike 3 times this year, worst case 4.
With the market volatility at the moment, it is a bad time to own growth stocks with no profit and it is a good time to own stocks of companies that are profitable and pay growing dividends.
Sells -
Airbnb(ABNB): Sold 8 at $134.86
ABNB is a good long term stock with high growth. However, I had too many shares of ABNB and I expect the stock price to go down even more. I sold a few shares so that I can buy more when the stock price decreases.
Roblox(RBLX): Sold 13 at $63
I trimmed RBLX for the same reason as ABNB.
Buys -
Twitter(TWTR): Bought 10 at $34.32
Twitter is a great profitable company and it is a stock I want to own in the long term. I added to my position to lower my cost basis and use the opportunity to buy a few shares at a good price. If the price continues to decrease, I will buy more shares.
Philips(PHG): Bought 5 at $32.86
I bought a few shares of PHG for similar reasons as TWTR.
Dutch Brothers(BROS): Bought 8 at $45.92
BROS is one of the most promising stocks in my portfolio. BROS is a growing company with a good product that is popular among young people and will be in demand in the present and future. I also think that BROS will be a long term stock like Starbucks. I try to use every opportunity to buy the stock when the price goes down.
Aerojet Rocketdyne(AJRD): Bought 15 at $36.80
AJRD is a company that makes rocket engines. Rocket engines are the most important and complex part of a rocket and are very difficult to make. AJRD has a monopoly on making rocket engines. They make rocket engines for most rocket and defense companies. Recently, Lockheed Martin wanted to buy AJRD. The government did not allow that because Lockheed would have become too powerful of a company. After that, the stock price went down and I got a good buying opportunity.
Booz Allen Hamilton(BAH): Bought 15 at $76.20
BAH is a consulting company that mainly works for the US government. Unlike regular companies, the US government is not affected by recessions or market conditions. BAH has an excellent record of increasing dividends by double digits. A growing dividend is a sign of a profitable and well-run company. The quarterly results for BAH were not good and the stock price went down. I used the opportunity to buy a few shares at a good price. Oh and by the way, BAH again increased their dividend by 16% on Friday!
Thank you for reading my newsletter. I will be back with some interesting updates about the stock market and my portfolio next week!