Imperial Brands PLC (IMBBY) Increased in the SMA Portfolio

By on June 2, 2019

Stock Market PuzzleThe position in Imperial Brands PLC (IMBBY) was increased in the SMA Portfolio on Friday, May 31st, from a 1.8% weighting to 2.5% with cash available. Like many of the individual holdings in the portfolio, IMBBY has been a disappoinment. This has presented a seemingly unusual bargain opportunity; but who knows? I assumed the same with purchases of TEVA, GSM, and UPL to name a few, only to be sadly disappointed.

I’ve contemplated surrendering completely to the strategy of indexing, but still hold out hope several of the laggard positions will eventually turn around. Index investing certainly makes sense and I’ve allocated a portion of the portfolio’s capital in this direction. Value investing has been out of favor for most of the past decade. The eventual tilt from growth to value would likely create an environment in which several of the positions in the portfolio would see a strong recovery, although this outcome is not assured by any means.

The overall market closed out May on a weak note due to Mexican tariff proposals, along with an inverted yield curve threatening the potential ominous possibility of economic recession. This led to an overall intra-day drop in the global stock markets of about 1.5% on Friday.

I deemed this to be an opportune time to use some available cash to increase IMBBY’s position in the SMA Portfolio. IMBBY was purchased at $24.19. E-mail notifications will be sent out to subscribers.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>