The VIX, which measures volatility finished under 13 which really indicates a subdued markets as far as volatility is concerned. Although markets were roughly flat for the week, this doesn't mean that there wasn't much movement. The DJIA had about a 150 point range between it's high and low of the week.
With the mandatory budget cuts only a week week away...again, people are likely just sitting back watching how things are going to play out. Many of the stocks that did move this week were ones that reported their earnings.
Buffalo Wild Wings BWLD, (a name that we own in the TAMMA Fund and our own personal portfolio) reported strong growth for the quarter and the full year despite the rise in chicken prices.
- Sally Smith, President and Chief Executive Officer, commented, "We achieved a 37.8% increase in revenue for the fourth quarter as a result of strong same-store sales of 5.8% at company-owned restaurants and 7.4% at franchised locations, 62 additional company-owned locations in 2012, and incremental revenue from our fourteenth fiscal week. For the year, our total revenue exceeded $1 billion, a new milestone for Buffalo Wild Wings! High cost of sales continued in the fourth quarter, offsetting some of the bottom-line benefit of the fourteenth week, resulting in net earnings growth of 22.3% for the fourth quarter and 13.6% for the year."
The stock dropped on the news but rebounded throughout the rest of the week to finished up 1% for the week.
We also noted that we were following Archer Daniels Midland (own in personal account) who reported solid results in the previous week (see here for details). ADM finished higher in the week by over 4% due to reports that Warren Buffet had taken a stake in the company.
Gold Miner Kinross Gold Corp (own in TAMMA Fund and personal account) finished 4% lower on the week after it reported a wider loss than expected on better than expected revenue. The concern here is that prices to mine gold are rising faster than anticipated.
These are just a few examples of the names we were keeping a close on eye this week, but bottom line, it is becoming more of a stock pickers market where all stocks are not moving in the same direction either up or down. Which is a good situation for us at TAMMA.
Initial jobless claims caught our attention this week. See below the positive commentary by Econoday
- Initial and continuing claims are at their lowest levels of the recovery and are pointing to building strength for job growth. Initial claims fell 27,000 in the February 9 week to a 341,000 level that is nearly 20,000 below the Econoday consensus. The four-week average, at 352,500, is about 10,000 below the month-ago trend which offers an early indication of strength for the February employment report. Next week's report, which will offer data on the survey week of the monthly employment report, will provide a more telling indication.
Another data point we were watching this week was retail sales. Given the increase in the payroll tax that affects every working American, we surmise that this data source will tell us how big this tax impact is having on people. The number for January was actually quite decent with the actual number matching the consensus estimate of a gain of 0.1%. We believe that February and March numbers will be more telling of the tax impact.
The Week Ahead
This is a shortened trading week in the US with markets closed on Monday in observance of President's Day. The rest of the week has some solid economic data points mostly surrounding the housing market. The housing recovery does not seem to be loosing any steam. And as the employment situation continues to gain traction, this could keep the momentum in the housing segment going as well. We are continuing to hold our own short position of a basket of home builders. We will likely let this strategy ride until the spring and make a determination then as to it's future.
- Mon - Markets closed for President's Day
- Tue - Housing Market Index
- Wed - Housing Starts, Producer Price Index
- Thu - Consumer Price Index, Jobless Claims, PMI Manufacturing Index Flash, Existing Home Sales, Leading Indicators
- Fri - N/A
Have a great week!
TAMMA Capital - Our Mission
TAMMA Capital LLC is an investment management firm dedicated to being a responsible steward of our clients’ assets, and helping them to achieve their investment and life style goals.
TAMMA’s Strategic Investment Advantage
At TAMMA, we buy individual securities and specialized ETF’s. TAMMA is less expensive than most mutual funds even though we create a personalized, tailored portfolio for each client. Our entire focus is on doing what is best for our clients. In addition, TAMMA
- Personally select assets to build customized client portfolios
- Is an independent RIA which allows for increased flexibility to utilize multiple investment options
- Has the ability to manage all of a client’s investable assets including brokerage, retirement, 401k, and business accounts
The TAMMA Value Chain
TAMMA strives to provide value to individuals and small/medium sized businesses. Key components include:
- Return on Investment (ROI)
- Peace of Mind
- Quality Network of Professionals
- Turnkey Solutions
- Business Operational Solutions
TAMMA Capital LLC is a Registered Investment Advisor (RIA) in the State of Michigan
No comments:
Post a Comment