Today, we are recommending an Indian ETF whose five largest holdings are: Reliance Industries Ltd Shs Dematerialised (RELIANCE.B, 9.07% of assets); Infosys Ltd (INFY.BO, 8.58%); Housing Development Finance Corp Ltd (HDFC.BO, 6.54%); (ICICI Bank Ltd (ICICIBANK. 5.46%); and Tata Consultancy Services Ltd (TCS.BO, 4.58%). We are also taking profits in a previous idea.
iShares MSCI India ETF (INDA)
From Positive Patterns
For the next 10 years I believe India is a country that will make good economic strides and of course, iShares MSCI India ETF is a pure bet on India. India has a unique place in the world, albeit the risk is growing because with their population, they are going to be increasingly seen as a “Checkmate-to-China’ and that will not be an easy balancing act for India.
India has the potential, especially in the area of technology and medicine, to provide an improving job picture and better times for a country that is poor, but with a chance of improving. Of course, this is speculative but at around $52 or below, I think this should be a good 3 to 5-year trade, at least.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, March 1, 2022
Sell: The J. M. Smucker Company (SJM)
From The Prudent Speculator
Updated from WSBD 834, October 15, 2022
Keeping in mind that we are always dealing with a finite amount of money in our portfolios and that every stock is fighting for its spot each and every day, we chose to capture our winnings on food company Smucker in order to either pick up a new name for our managed account clients following our ValuePlus and TPS strategies or to raise cash for potential near-term opportunities for clients utilizing our Dividend Income and Small-Mid Dividend Value strategies.
It is not that we dislike Smucker, but the stock was not too far from its Target Price, having benefited nicely from shifting consumer behavior during the pandemic. We are not convinced, however, that growth going forward will be robust, and we note that the company’s food portfolio is not strong in trends that favor fresh, healthy choices often found outside the shelf-stable aisle at the grocery store. Further, cost inflation has impacted margins, while we suspect that the recent growth-via-acquisition strategy will not be as lucrative in the quarters to come as target company prices have risen and financing costs have moved higher.
John Buckingham, The Prudent Speculator, theprudentspeculator.com, 877-817-4394, February 8, 2022