As 2017 winds down to a close, we have made several changes to the model portfolio. These changes are meant to better position our holdings for 2018.
The changes are as follows: adding NDRA at an average weight of the 14 stocks in the portfolio, increased CATS to an overweight, and removed UGE and TRAK.
Here’s the logic behind each move.
NDRA: I’ve been watching this stock for a while and trying to get my head around the likelihood of adoption of the technology. At this time, I’m convinced that there’s a very good chance doctors will be using this technology once it’s made available and, therefore, there is a lot of upside here.
CATS: I put out a note yesterday, but in a nutshell…business is at an inflection point and the shares have suffered from tax-loss selling. The company could be a huge winner in 2018 and the timeliness of this opportunity is very compelling.
UGE and TRAK are very small companies that don’t seem to match well with Tailwinds’ investors, even though they appear to be well positioned for growth in 2018.
It is my goal to limit companies under coverage to 15 names, so that each stock can make a meaningful impact on the portfolio. We are at 14 names now and will likely add on another to the Tailwinds Select Portfolio in early 2018.
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