Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Citrix Systems, Inc. (CTXS), Allergan, Inc. (AGN): What I Bought and Sold This Quarter

In the end, numbers are just numbers and while they are an indispensable part of an investor’s self-assessment, they do not always reveal the full details. For example, my last month closed with a negligible loss but the truth is, I started the month notably down after two profit warnings on the last day of April. In retrospect, it was a pleasing month and I think there are some useful conclusions to be drawn from it.

For the record, I’m down 2% for the quarter but up nearly 34% on a yearly basis. Readers can access previous write-ups here. April was a bad month for me, and much of that under-performance can be traced to decisions made in February, of which the articles linked below solely pertain.

Buy or sell when in doubt?

One of the hardest questions for any investor to deal with relates to what to do when you see short-term earnings risk but long-term value in a stock? If you sell out in anticipation the stock could easily fly away from your estimate of ‘fair value’ if it delivers a decent set of results. However, if it warns, you are delivered with a good buying opportunity.

Citrix Systems, Inc. (NASDAQ:CTXS)

Moreover, if you do decide to hold over the results and the company lowers and misses guidance, do you buy more or dump the stock? Frankly, I think the answer to the last question depends on your view of why the company missed.

For example, plenty of tech stocks missed in the last earnings season and I’ve argued here this is could be a good chance to start picking some up. The market is bidding up other sectors in anticipation of a resumption to growth in the second half, so why won’t technology take part in this growth? Indeed, many of the statements of the leading tech companies (International Business Machines Corp (NASDAQ:IBM)Oracle Corporation (NASDAQ:ORCL), etc.) specifically cite short-term hesitation (caused by sequestration fears) by customers in closing deals but at the same time, growing pipelines.

The usual format below with links to the articles discussed. All of them are from February and performance numbers are from the day they were originally published on the Motley Fool.

View Company+Article Link Performance Since Article
Buy Citrix Systems (NASDAQ:CTXS) -13.2%
Buy Fortinet -21.7%
Buy Regal Beloit -17.6%
Buy Ixia -33.6%
Buy Nice Systems 2.9%
Buy Henry Schein 7.4%
Buy Intuit -12.2%
Positive Robert Half International -1.1%
Positive Cognex 7.3%
Positive Nordstrom 9.5%
Positive NetApp (NASDAQ:NTAP) 9.5%
Positive Autodesk 9.5%
Evaluation Sherwin Williams (NYSE:SHW) 13.6%
Evaluation Allergan (NYSE:AGN) -8.1%
Evaluation Colgate Palmolive (NYSE:CL) 5.4%
Evaluation Beacon Roofing Supply 6.7%
Evaluation Perrigo 2.6%
Evaluation V.F. Corp 14.4%
Evaluation Roper Industries 3.9%
Evaluation B/E Aerospace 15.3%
Evaluation Idexx Labs -13.5%
Caution McCormick 4.8%
Caution Rackspace -57.2%

It is a story of tech weakness and a conglomeration of the sort of factors that can gang up and assault the innocent investor. Intuit Inc.(NASDAQ:INTU) managed to report a weak tax return season and REGAL-BELOIT CORPORATION(NYSE:RBC) managed to lose a key customer and warn that the commercial construction market wasn’t as strong as it had previously expected. Ixia (NASDAQ:XXIA) disclosed some accounting errors and then gave a (somewhat expected) disappointing earnings report. I bought some Fortinet Inc (NASDAQ:FTNT) after the warning, having been cautious over not holding too much tech going into the earnings season.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.