New Positions on Covestor—September 27th, 2010 (DHY, CRM)


Editor’s note: As of 9/20/11 Lucas Krupinski no longer manages a Covestor model

We talked about Lucas Krupinski and his Small Cap Fundamentals model last week when he added some new positions. This week, he’s added another, Credit Suisse High Yield Bond Fund (DHY). DHY is a fund that works to create income but has capital appreciation as a secondary objective. It’s a riskier fund with 80 percent of its assets invested in unrated or lower than BBB rated income securities. The fund also invests up to 20 percent of its assets in the securities of companies that are at risk of being in default. On September 28th the fund was trading at a discount to NAV.

Model manager Stocks for the Week added another new positions to their Top Internationals model this week. We discussed the model in detail last week. This week they added Salesforce com Inc (NYSE: CRM) is a cloud computing company that brings customer relationship management and other services to businesses. If you aren’t familiar with cloud computing it is, basically, the process of providing applications and support through online means when needed—rather than having equipment and programs installed into an office or system. As of September 28th, CRM had an extremely high price to earnings ratio, exceeding that of its competitors and peers. The company’s 2010 gross income and net revenues exceeded those in 2009 but their total liabilities increased from $770.7 million in 2009 to $1.4 billion in 2010. The company’s earnings per share also increased in 2010, reaching $0.63 when it had been $0.35 the prior year.