Real Life Trading Summer Portfolio 2018: First Edition
Hi Friends! How is life your way? What new things, activities, projects and accomplishments have transpired since my last write up?
It’s summer here, at least in the Northern Hemisphere. Ashley and I were just out and about, frolicking around some parks here in beautiful green and hot Nashville, TN.
As you read this, during this particular week, Real Life Trading is ‘closed’ today and tomorrow. The US markets closed early this past Tuesday, July 3rd, at 1:00 pm Eastern. Then I hosted the afternoon swing trading room right after the early closure on Tuesday. And of course the markets were totally closed on the 4th. I headed down to the Gainesville, GA locale to spend time with my Uncle Billy and now I’m visiting a Real Life Trader in the Brunswick, GA area and then tomorrow morning I’ll pop back up to Culloden, GA to spend time with my Aunt and my relatives on my Mom’s side of the family. So, a good few days overall traveling, visiting family, friends, traders and enriching lives!
Earnings season is right around the corner and I’m quite thrilled and ecstatic with all the fun gaps, day trading possibilities and option opportunities that will befall us all in the upcoming weeks.
Unless you are brand new to Real Life Trading, you know that I publish one of these articles quite often, at least every 40 days, as a way to track, trade, touch base with and keep a pulse on a variety of stocks. I ran a special scan to find 4 out of the 5 stocks below. One of them, AAPL, is featured in every write up. But, for the upcoming Summer months I plan on watching, trading and making some gains (either short term or long term) off of the below stocks. Let’s enrich lives together!
Stock #1 Deluxe Corporation Ticker: DLX - Analysis on July 6th, 2018
This is a company you might not have heard of, nor traded before. Which is totally fine! That might be the case with many of the below stocks. Therefore, I’ll give you an brief summary of each one. I’ll start with DLX.
Deluxe Corporation provides checks, forms, marketing solutions, accessories, and other products and services for small businesses and financial institutions. It operates through three segments: Small Business Services, Financial Services, and Direct Checks. The company provides checks; printed forms, such as deposit tickets, billing forms, work orders, job proposals, purchase orders, invoices, and personnel forms, as well as computer forms and check registers; and accessories and other products comprising envelopes, office supplies, ink stamps, and labels, as well as checkbook covers.
DLX also offers Web services, which include logo and Web design; hosting, domain name, and web design services; search engine optimization; marketing programs, including email, mobile, and social media, and other self-service marketing solutions; and fraud protection and security, online and offline payroll services, and electronic checks. Which, these are some solid solutions, especially for up and coming entrepreneurs and potential on-line business owners.
In addition, DLX provides financial technology solutions larger financial institutions, which comprise data-driven marketing solutions, including outsourced marketing campaign targeting and execution; treasury management solutions comprising accounts receivable processing and remote deposit capture; and digital enablement solutions consisting of loyalty and rewards programs. It operates in the North America, Australia, South America, and Europe. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Shoreview, Minnesota. They have almost 6,000 full time employees.
DLX is right at the 200 SMA on the weekly chart. We have bounced off that area before.
This stock has slowly chugged higher over time and looks nice. The only play I see right now is a $60.00 put sale for August. Which, the premium is honestly not terrible for a solid blue chip stock like DLX. Here’s what the put sale looks like. I don’t see anything that looks incredible on the short term, right now, but longer term, I expect this one to keep chugging along higher over time.
Stock #2 Thor Industries, Inc. Ticker: THO - Analysis on July 6th, 2018
Thor Industries might be one of the biggest companies you’ve never heard of. They have over 17,000 full time employees and they are based out in Elkhart, Indiana. *Said in a thick Southern Accent* ‘This is what many would refer to as a good ‘ol American Company.’
Thor Industries, Inc., through its subsidiaries, designs, manufactures, and sells recreational vehicles, and related parts and accessories primarily in the United States and Canada. It operates through Towable Recreational Vehicles and Motorized Recreational Vehicles segments. The company offers travel trailers under the Airstream Classic, International, Tommy Bahama, Flying Cloud, Sport, and Basecamp trade names, as well as Interstate series of Class B motorhomes; gasoline and diesel Class A and Class C motorhomes under the Four Winds, Hurricane, Chateau, Windsport, Axis, Vegas, Tuscany, Palazzo, Aria, Quantum, Compass, Gemini, A.C.E., Alante, Precept, Greyhawk, and Redhawk trade names; and luxury Class A motorhomes under Insignia, Aspire, Anthem, and Cornerstone trade names. It also provides conventional travel trailers and fifth wheels under the Montana, Springdale, Hideout, Sprinter, Outback, Laredo, Bullet, Fuzion, Raptor, Passport, Cougar, Coleman, Kodiak, Aspen Trail, Aerolite, Voltage, Cruiser, Volante, Sunset Trail, Zinger, Landmark, Bighorn, Elkridge, Trail Runner, North Trail, Cyclone, Torque, Prowler, Wilderness, Shadow Cruiser, Fun Finder, MPG, Radiance, Stryker, Sportsmen, Spree, Venom, Durango, SportTrek, Connect, Sportster, Sonic, Jay Flight, Jay Feather, Eagle, Pinnacle, Seismic, Launch, Autumn Ridge, Solstice, Highlander, Mesa Ridge, and Open Range trade names; and luxury fifth wheels under the Redwood and DRV Mobile Suites trade names. Phew. That’s a LONG list. HAHA. I just wanted to make us all aware. I mean, the more you know, right?
In addition, the company offers equestrian recreational vehicle products with living quarters under trade names, such as Premiere, Silverado, Ranger, Laredo, Trail Boss, and Trail Hand; and lightweight travel trailers and specialty products under Camplite and Quicksilver trade names. Further, it provides aluminum extrusion and specialized component products.You should see some of these trailers. WOW! I was at an equestrian event about 4 months ago with my buddy Matt Delong and I saw some of them first hand. Two words, incredible and overwhelming.
The interesting technical analysis on THO right now is it’s not sitting on top of any moving average that I use on either the daily, weekly or monthly chart. This is the monthly chart with the 10/20/50 ema.
So, that could provide some level of support in due time. If we zoom into the daily chart, here’s what I see. Volume came in nicely after volume and dividends just paid out. It seems that THO is going to try and form a double bottom on the daily or hourly. We can notice a higher lower on THO so far.
But, similar to DLX, the only strategy that looks super appealing is this boring August $85 put sale, which does produce some decent premium.
Stock #3 Penske Automotive Group, Inc. Ticker: PAG - Analysis on July 6th, 2018
Well, this is another massive company, but one you have likely heard of. I don’t know why, but anytime I watch Tommy Boy with Chris Farley I think of Penske automotive group when they talk about the ‘company’ Callahan Auto Parts.
As you know, Penske is huge! But, I bet you didn’t guess how huge. Penske has 26,000 full time employees, plus their PE ratio is a solid 6.56, with EPS of 7.14. And yes, PAG does pay dividends.
Penske Automotive Group, Inc. operates as a transportation services company. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe; and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services primarily in Australia and New Zealand. The company engages in the sale of new and used motor vehicles of approximately 40 brands; and provision of vehicle services and collision repair services.
In addition, it is involved in the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, and replacement and aftermarket automotive products. Further, the company distributes commercial vehicles and parts to a network of approximately 70 dealership locations, including 8 company-owned retail commercial vehicle dealerships.
As of December 31, 2017, it operated 343 automotive retail franchises, of which 155 franchises are located in the United States; and 188 franchises are located outside of the United States primarily in the United Kingdom. That’s something I learned while researching PAG. I had no clue they had these franchises.
The company also operated 20 dealership locations of heavy and medium duty trucks, offering primarily Freightliner and Western Star branded trucks, as well as a range of used trucks, services and parts. Penske Automotive Group, Inc. is headquartered in Bloomfield Hills, Michigan, just a couple of dozen miles north of Detroit.
The average volume is not luxurious on PAG, but on the daily chart it did have a decent bullish gap and go.
If you zoom into the hourly chart, you’ll see something like this.
We can see PAG is about as sideways as stocks get (for now). I’m game to buy a dip, but I’ll be inclined to sell high and fast.
Stock #4 Apogee Enterprises, Inc Ticker: APOG - Analysis on July 6th, 2018
And now, we have another company, based in the Mid-East of America. This company is very interesting with some really specifics niches.
Apogee Enterprises, Inc. designs and develops glass and metal products and services in the United States, Canada, and Brazil. It operates through four segments: Architectural Framing Systems, Architectural Glass, Architectural Services, and Large-Scale Optical Technologies (LSO). The Architectural Framing Systems segment designs, engineers, fabricates, and finishes the aluminum frames used in customized aluminum and glass window, curtainwall, storefront, and entrance systems comprising the outside skin and entrances of commercial, institutional, and multi-family residential buildings.
The Architectural Glass segment fabricates coated and high-performance glass used in customized window and wall systems, including the outside skin of commercial, institutional, and multi-family residential buildings. The Architectural Services segment offers full-service installation of the walls of glass, windows, and other curtainwall products making up the outside skin of commercial and institutional buildings.
The LSO segment manufactures value-added glass and acrylic products for framing and display applications. APOG’s products and services are primarily used in commercial buildings, such as office towers, hotels, and retail centers; and institutional buildings that include education facilities and dormitories, health care facilities, and government buildings, as well as multi-family residential buildings.
APOG markets its architectural products and services through direct sales force, independent sales representatives, and distributors to general contractors and glazing subcontractors, architects, and building owners; and value-added glass and acrylics through retail chains, picture framing shops, and independent distributors to museums, shops, and galleries. The company was founded in 1949 and is headquartered in Minneapolis, Minnesota with 6,700 full time employees.
Since many of these stocks might not be familiar to traders, I’ve kind of given you some longer term viewpoints and perspectives. Here is the monthly chart on APOG.
And now, we will zoom into the weekly chart. You’ll notice the 100/200 SMA are pretty much right in the middle of this channel / distribution phase that APOG is in.
This is the daily chart on APOG. We are above the 100/200 SMA on the daily along with the weekly. It’s certainly above the 10/20/50 ema on the weekly. Which means, this is how I would look to play APOG.
Stock #5 Apple Inc Ticker: AAPL - Analysis on July 6th, 2018
Yeah, you know about this one already. Did you know AAPL has 100,000 full time employees? That happens to be A LOT. HAHA. I have two really fun charts on AAPL. This was previous the most recent pattern I found. And after that, I found these two similarities.
Bottom line, I am still quite certain AAPL hits that mythological $1,000,000,000,000 mark, which would be the first company ever. I do feel confident that the $210 July covered call will expire worthless, which is solid. I plan on doing another one, likely over earnings, to be a $210 August covered call. That will be my plan. I do believe AAPL will make a new all time high, then all the ‘newbies’ will hop on and AAPL will roll back down to a previous support. Which will be another solid buying location once again.
I’m excited to see how this bad boy plays out.
Well my friends, those are my 5 stocks for the Summer Season! Let’s follow them together, track them, trade them and make some money off of them! Sounds exciting to me!
I do plan on being in Chicago July 21st - July 24th. If you are in that area, let me know and perhaps we can all get some hangout time in and enrich lives together!
Alright traders! Thank you for reading! You are amazing! Let’s enjoy the upcoming earnings season and have fun with all of these gaps!
~ The most avid flip flop wearer of RLT and CEO of Real Life Trading ~ Jerremy Alexander Newsome