Today’s news: SYNNEX (SNX) is now Retired from the Buy Low Opportunities Portfolio.
SYNNEX Corp. (SNX – yield 1.5%) joined the Buy Low Opportunities Portfolio on January 8. After reporting fourth quarter results on January 10, the stock rose rapidly. Full-year 2018 profits came in higher than the market had expected, and full-year 2019 EPS estimates have since risen, but the gap between the 2018 and 2019 numbers shrunk, with 2019 EPS now expected to grow just 8.1%.
So basically, the stock performed as I had hoped—albeit much more quickly—and the future outlook is certainly okay, but does not provide a catalyst for additional near-term price appreciation. Therefore, I’m retiring SNX from the portfolio because it met my investment objective and the fundamental outlook is now more moderate than before. RETIRED.