Accounting for additions and removals from the portfolio since inception in January 20
Paradigm Portfolio Returns
Average gains of the 37 companies that make up the Paradigm Portfolio are 28.5% since the beginning of 2013. Almost 80% of stocks are trading in positive territory since entering the portfolio, and over two-thirds are posting double-digit gains. When looked at on an annualized basis, the Paradigm Portfolio has an impressive equivalent of 39% gain annualized.
The best performer by far is SolarCity (http://www.roenreport.com/
SAP is the poorest performer, down 12% since January. This large German software company, which sells smart grid management products for utilities, has experienced downward earnings pressures from the generally lackluster European economy. SAP does, however, have very good free cash flow and strong earnings estimates going forward. We consider the stock below fair value (http://www.roenreport.com/
Paradigm Portfolio Update
One company being added to the Paradigm Portfolio is Fuel Tech, Inc. (FTEK). Fuel Tech is a relatively small Illinois-based pollution control and combustion efficiency company. FTEK has steadily growing annual sales and an encouraging number of new orders for its products. Another good sign is that the company has positive net insider buy activity. This, combined with the fact that we measure the stock as undervalued, means FTEK likely has good upside potential from here. One word of caution is that Fuel Tech trades thinly and has had extreme volatility in the past, so it is considered a highly speculative stock.
*Hypothetical gain from portfolio recommendations. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on this list.
Individuals involved with the Roen Financial Report and Swiftwood Press LLC do not own or control shares of any companies mentioned in this article. It is also possible that individuals may own or control shares of one or more of the underlying securities contained in the Mutual Funds or Exchange Traded Funds mentioned in this article. Any advice and/or recommendations made in this article are of a general nature and are not to be considered specific investment advice. Individuals should seek advice from their investment professional before making any important financial decisions.