As the month of SepteAdd Mediamber is a few days away, we will soon be in the month with the highest frequency of hurricanes; we reviewed our business interruption procedures today. While we are hardly getting routine afternoon thunder storms, a review of hurricane plans is timely. Thus, if you need any transfers or other help, please let us know well in advance, just in case…
Financial markets behaving better lately
Recently, stocks and bonds have both rallied. Bonds trended higher in price, lower in yield, largely due to falling yields in Germany, Spain, and other developed nations that make the 2.3% yield on our 10 Year Treasury Bond look like a great deal.
After a rough patch in late July to early August, stocks have rally over the past three weeks. Client account performance has also been a bit better than the SP500 more recently. Generally, the earnings reports of our top holdings were strong, but the stocks of the best performers got a muted reaction, while any sort of problem reported to investors resulted in the stock being severely punished.
Gilead had the most notable earnings report with sales and earnings more than doubling from a year ago. The results were led by their new blockbuster drug, Solvaldi, which cured 9,000 patients of Hepatitis C. Although the stock has risen recently, giving the results, a larger gain would seem reasonable. On the downside, Helmerich & Payne and Synaptics, two big gainers earlier this year, gave back a portion of their profits, despite strong earnings reports due to profit taking.
Buying new two new stocks lately: EOG Resources and Hexcel
For some client accounts, we have added positions in EOG Resources and Hexcel. EOG is one of the largest natural gas and oil exploration firms in the U.S. They have grown rapidly due to new drilling technology and are considered one of the best managed in this industry.
Hexcel is manufacturer of carbon fiber products. Carbon fiber products are stronger than steel, but weigh much less, but at a much higher cost. Their biggest customers are Boeing and Airbus. They also provide their products in high end products such as TREX bicycles and hockey sticks.
All the best for an enjoyable holiday weekend.
Information sources used to prepare this report include Argus Research, Value Line Investment Survey, Zacks, Barron’s, Kiplinger’s, Fidelity, and Decision Economics. Founded in 2010, Andrew Hill Investment Advisors, Inc. is registered as an investment advisor with the State of Florida and with the State of Texas and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Andrew Hill and clients of AHIA hold positions in the investments mentioned in this report. Please contact Andrew Hill Investment Advisors, Inc. if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account. Our current disclosure statement is set forth in Form ADV, Part 2 and is available for your review upon request. Tax and estate planning advice is general in nature and the firm is not engaged in the practice of law.
Andrew D.W. Hill, CFA
President & Co-founder
Andrew Hill Investment Advisors, Inc.
4081 Tamiami Trail North, Suite C-105
Naples, FL 34103
Direct Dial: 239-777-3188
Visit us on the web: www.responsibleadvisors.com
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Andrew Hill Investment Advisors, Inc., is registered as an investment advisor with the State of Florida and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements.
Please contact Andrew Hill Investment Advisors, Inc. if there are any changes in your financial situation or investment objectives, or if you wish to impose, add or modify any reasonable restrictions to the management of your account. Our current disclosure statement is set forth in Part II of Form ADV and is available for your review upon request.