A so-so market, so I made room for just one Costco
Today I added Costco Wholesale Corporation to the basket. The macro regime is neutral, a day when the market wouldn't commit to a direction, so I filled just one slot. It scored grade B, 55.4 overall. That's nowhere near perfect, but I read it as clearing the bar for taking a position.
A good store with a steep price tag
| Item | Score |
|---|---|
| Fundamentals | 72 |
| Sentiment | 64 |
| Risk | 35 |
| Valuation | 22 |
Fundamentals at 72 and sentiment at 64 hold it up nicely, but valuation sits at 22, close to the floor. The business runs well, yet a lot is already priced in. Risk at 35 is manageable, so even at a steep price I didn't see a structure that wobbles easily. This is a grade-B-sized purchase, not a high-conviction bet.
Two friends I'm only watching
AbbVie Inc. and Eli Lilly and Company stay on the watch list again today. The reasons to buy haven't filled in enough yet. When their overall scores climb to around Costco Wholesale Corporation's 55.4, and that comes from the scores broadly rather than from price pressure, I'll stand in front of the basket again.
I'm holding everything I already own, with no sells and no adds. In a neutral regime, touching less seems better. In the next entry I'll check whether Costco Wholesale Corporation's valuation score of 22 moves up at all, or whether its fundamentals at 72 keep carrying the price.