US small mid cap stocks with secular growth, good ROE (ROCE)

Not sure if I'll get an answer. Any recommendations for US small mid cap compounding machines with secular growth, good ROE (ROCE).

 

Thanks, Meenakshi.

 

you are investing in US markets?

 

biotech stocks in the US have been beaten down: Biogen, Amgen, Celgene, are good buys. However, I generally invest through ETFs rather than stocks. XBI and XLV are good etfs. I recommend Brinker International, a hot midcap stock, but do your research

 

What about tesla and netflix?

 

GLUU mobile

 

I am thinking of buying inverse etf for biotech, russell..markets might crash going forward.

 

netlix is good for the long term, but the stock is correcting post december poor performance. tesla again is a long term buy but still making losses, alternative energy stocks are always risky. Google is a safer option

 

why gluu? Loss making company

 

This might be a model portfolio.

Portfolio Holdings of Motilal Oswal MOSt
SL Overseas Companies %
1 Microsoft Corporation 7.75
2 Amazon.com 3.84
3 Google -Class C 3.61
4 Facebook 3.47
5 Google 3.1
6 Intel Corporation 3
7 Gilead Sciences 2.94
8 Cisco Systems 2.86
9 Comcast Corporation 2.4
10 Amgen 2.35
11 QUALCOMM 2.18
12 Apple 14.44
13 WALGREENS BOOTS ALLIANCE INC WBA 1.78
14 Celgene Corporation 1.75
15 Biogen Idec 1.74
16 Starbucks Corporation 1.46
17 eBay 1.37
18 priceline.com 1.25
19 Mondelez International 1.23
20 Costco Wholesale Corporation 1.23
21 Express Scripts Holding 1.19
22 Baidu 1.17
23 Texas Instruments 1.11
24 Kraft Foods Group 0.96
25 Regeneron Pharmaceuticals 0.91
26 Twenty-First Century Fox 0.89
27 DIRECTV 0.88
28 Automatic Data Processing 0.78
29 Yahoo! 0.78
30 Adobe Systems 0.74
31 Cognizant Technology Solution 0.7
32 Alexion Pharmaceuticals 0.68
33 American Airlines Group Inc Com Usd1 0.66
34 Netflix 0.66
35 LIBERTY GLOBAL INC-C?W/I COM 0.61
36 Micron Technology 0.6
37 Avago Technologies 0.58
38 Vertex Pharmaceuticals 0.58
39 Tesla Motors 0.56
40 Mylan 0.54
41 Intuit 0.54
42 Twenty-First Century Fox - B 0.52
43 ILLUMINA 0.52
44 Viacom 0.49
45 Cerner Corporation 0.48
46 Broadcom Corporation 0.47
47 Applied Materials 0.47
48 PACCAR 0.45
49 Monster Beverage Corporation 0.45
50 Comcast Corp-Spec A 0.45
51 Marriott International -Cl A 0.45
52 Western Digital Corporation 0.43
53 Sirius Xm Holdings 0.43
SL Overseas Companies %
54 OReilly Automotive 0.43
55 NXP SEMICONDUCTORS 0.42
56 Charter Communication-A 0.41
57 Ross Stores 0.4
58 Analog Devices 0.38
59 Seagate Technology 0.37
60 Keurig Green Mountain 0.36
61 Fiserv 0.36
62 Intuitive Surgical 0.35
63 Electronic Arts Inc Com 0.35
64 Paychex 0.34
65 Whole Food Market 0.34
66 Symantec Corporation 0.33
67 Sigma-Aldrich Corporation 0.32
68 Activision Blizzard 0.32
69 Dollar Tree 0.31
70 Check Point Software Technologies 0.3
71 Vodafone Group 0.3
72 DISH NETWORK CORPORATION 0.29
73 Sba Communications Corporation 0.29
74 SanDisk Corporation 0.28
75 CA 0.27
76 Autodesk 0.26
77 Akamai Technologies 0.26
78 Fastenal Company 0.25
79 Liberty Interactive Corporation 0.25
80 Liberty Global 0.25
81 Bed Bath & Beyond 0.25
82 Catamaran Corporation 0.24
83 Altera Corporation 0.24
84 NVIDIA Corporation 0.23
85 TRACTOR SUPPLY COMPANY 0.23
86 Verisk Analytics 0.23
87 Lam Research Corp Com 0.23
88 Henry Schein 0.22
89 Netapp 0.22
90 Stericycle 0.22
91 Xilinx 0.22
92 Citrix Systems 0.21
93 Wynn Resorts 0.21
94 Linear Technology Corporation 0.21
95 TRIPADVISOR 0.2
96 Staples 0.2
97 Vimpelcom 0.19
98 KLA-Tencor Corporation 0.19
99 Mattel 0.19
100 C.H.Robinson Worldwide 0.18
101 Discovery Communications C 0.17
102 Garmin 0.17
103 Expeditors International of Washington 0.17
104 Liberty Media Corporation - C 0.17
105 Liberty Ventures - Ser A 0.11
106 Discovery Communications 0.09
107 Liberty Media Corporation 0.08

 

people are struggling to come up with good Indian stocks and you are demanding good US stocks...good luck..actually you have to know the company, understand the business of the company and watch it over some time to form a view. It is impossible to simply look at numbers and make a call. Qualitative aspects or the larger picture as Porinju says often are equally important. for e.g I am sure Amazon certainly does not have the best ROE or ROCE but it is one of most expensive stocks on trailing PE. Why ?

 

I am holding this since a year and adding on dips. I believe it will perform well in coming months.
They have signed several celebrities most recent being Taylor Swift. And the recent fall has made it more attractive.
I just shot up 32% after thr results yesterday

 

Words of priceless wisdom but which actually are so oft repeated that i wonder dont people get that tired of listening to it over and over again ( i am for sure). And as if anybody in here really understands the companies and its business. At best one just scratches the surface...

Anyways

Some are ' be indian buy indian' others globe trotters who think its worthwhile exploring the international shores especially the home to ' the best, grand and innovative' ideas.

Some prefer trailing whether PE's or something else, some prefer potential.

Lady luck at the core in both the 'somes' and each entitled to their respective ways.

 

Super... Dont know a shit about the company ( my focus is a small set of companies ) but hope the stock does live up to your expectations

 

@rushia, @adi16,

Whats this tax on oil $10/barrel thingy all about? Any merit or just one of many passing conversations

 

Where's the struggle? And if one has an opportunity to dabble in the businesses from The American Dream, nothing wrong with it. It's done within the regulatory framework laid down by the RBI.

The crude barrel tax looks like pushing people towards cleantech - Tesla Motors?

Does Jeff Bezos care about what others think of Amazon or just laugh his way to the billionaire's list.

Why's the big names in small & midcap discussion?

Texas Instruments @ $50 looks good.

 

I just checked the list of the ETF, Apple is top holding at 15%..shows the confidence the people have in the company ..I guess I proved myself right, even though its American company the fund manager is Indian, he has invested the highest percentage in the stock he knows the best about. I am not boasting , I really shared my first opinion without looking at the holdings. But at the same time everybody is entitled to his view.
@darth...no offence taken as I understand your comment was at me. Nobody can understand the company completely. Not sure what you mean by "scratching the surface" because at the end of the day market is more about perception than reality, be it US market or Indian markert.

 

From what I understand its meant to fund some budget initiatives. Anyways I dont suppose Elon Musk will look to such a kind of push.... Climate Change is a big push anyways

 

I hope this Indian fund manager is aware of that
- apple is Iphone : needs just one smartphone to bring down the company too
- that according to many this growth driver is showing signs of likely fatigue
- Q1 results werent much to cheer about
- Q2 guidance isnt inspiring too
- that while apple will grow it wont grow at what the market has experienced until now
- for some the holding criteria is now just dividends and buybacks

And by scratching the surface I meant that the proclaimed understanding of companies and business is pretty much superficial ( proper understanding is pretty farfetched in mosts cases ) - just like you said : nobody understands the company fully.

Cheers