Lingyi started off the meeting by talking about our portfolio. We will make the decision about some stock purchase in subsequent meetings. We will look more into safe stock, which generates cash but doesn’t have much growth potential. Our portfolio is really heavy in technology and industrial stocks. Later we will might think about shifting our focus more to conservative side of the investment.
We had a brief but condensed market update session. Several of the updates caught our attention. First, the situation in Greece and Italy has improved. Second, the home sales were up 6% compared to last month. Third, stock market performed better than expected this week. Fourth, European crisis seems to be under control.
Lingyi went over our portfolio. Due to the better performance of the whole market, our portfolio did out-performing market this week. In order to find a better source of growth, we looked at the some possible change in our portfolio. Our portfolio has a high percentage of high-tech stocks. They may be volatile during market panic. Therefore, we need to start to look at utilities stock that will help us sustain in bad times.
Firstly, we looked at LMT (Lockheed Martin Corporation). It is an American global aerospace, defense, security, and advanced technology company with worldwide interests. Its biggest customer is NASA. Every year, LMT gets many orders from NASA. However, due to recent cut in the US’ military budget. LMT might be affected by the major government policies changes. We decided to look at Lockheed Martin again when it goes down.
Secondly, Alia did a presentation about Schlumberger Limited. It is world’s largest oilfield services company. Today Schlumberger supplies the petroleum industry with services such as seismic acquisition and processing, formation evaluation, well testing and directional drilling, well cementing and stimulation, artificial lift, well completions and consulting, and software and information management. The company is also involved in the groundwater extraction and carbon capture and storage industries. It’s a cyclic stock. It covers many diverse field related to Oil Industry and provides services in 80 different countries. We think it will be a good choice in terms of long term performance.
We made the decision to buy Schlumberger. We voted to decide number of shares to be 20, 25, 30, 40, 50 or 100 shares. We ultimately decided to make purchase of 30 shares of Schlumberger. The expected growth is upside 75 and downside 60 dollars. We will talk be sorting out the problem of no one taking care of the portfolio during the summer shortly.