New Positions on Covestor (SIRI, VXX, VMW)


John Ballard’s Mid-Cap Fundamentals model focuses on the best companies in under-capitalized sectors. Ballard uses a fundamental approach and looks for strong balance sheets and high returns on capital. Recently, he added Sirius XM Radio Inc (NASDAQ: SIRI) to the model. SIRI’s total assets dropped slightly in 2009, going from $7.5 billion in 2008 to $7.3 billion in 2009—but so did their total liabilities which fell from $7.5 billion in 2008 to $7.2 billion in 2009. The second quarter of 2010 found their assets down to $7.2 billion with their liabilities further reduced to $7 billion. The company’s net revenue has grown steadily since 2006, rising from $637.2 million in 2006 to $2.5 billion in 2009.

Capital Ideas recently added iPath S&P 500 VIX Short-Term Futures ETN (VXX) to their ETF Only model. Capital Ideas focuses on macroeconomic trends when choosing ETFs and attempts to add those that will provide long-term growth. VXX attempts to mirror the performance of the S&P 500 VIX Short-Term Futures Total Return Index. On September 30th the fund was trading at a discount to NAV.

Peter Kurata’s CANSLIM model uses the CANSLIM system that was created by William O’Neil. Kurata also looks at technical analysis from over 100 years’ worth of stock chart research. This helps him pick positions that will maximize gains while minimizing downside risk. Recently, he added VMware Inc (NYSE: VMW) to the model. VMW provides software and cloud computing solutions to businesses. Their price to earnings ratio is high when compared to competitors, but their second quarter 2010 financial results showed a 48 percent increase in revenues, year-over-year. They also more than doubled their GAAP net income year-over-year. Recently, the company announced a Windows® consolidation product that will help reduce IT expenses.