The Incremental Investor

My problem with allocation and stock rotation in my IRA portfolio may not be as simple and straight as the title of the post sounds. Recently, I added to my my existing position in General Motors - GM  , which I am having second thoughts about. Despite having potential to grow and find a foothold in the electric and hybrid passengers vehicle market, compared to Ford - F, GM hasn't been doing very well in the 2nd half of the year. Some of the gains of the 1st half of the year have dissipated due to challenging conditions in the passengers vehicle market that has been impacting most players, including the Japanese big three (Toyota, Honda and Nissan). GM is also in the initial stages of a strategic shift to electric and hybrid vehicles, including autonomous and semi-autonomous vehicles and driving. The wrangles it is having with its workforce and inability to strike a deal so far with the UAW is also weighing in on the market perception and sentiment towards this ticker. Unfor...

While this idea has been considered in far greater detail on a recent Seeking Alpha (SA) article , this post seeks to consider or explore the bullish options from a simpler intuitive aspect. Here is the current price and basic fundamentals picture of this ticker: Source: Yahoo Finance The spike on Friday was possibly a reaction to the SA article and realization that the sell-off in this counter was overdone. The market did not like the NTRI - Nutrisystem acquisition made by this company, along with the subdued revenue guidance. Unfortunately the weight loss industry is not in the good books of the market, as seen in the slide back of WTW - Weight Watchers price from the low $100's to the sub-$20's now. From a contrarian perspective, it is too early to write off the weight loss industry. NTRI has been a pioneer in weight loss diets innovation in the past and Weight Watchers is also working on an image and strategy revamp with the help of Oprah Winfrey. Technica...