Major Changes


newpurchase_growthportfolioToday is a big day. I will add three names to the Growth Portfolio and Aggressive Growth Portfolio:

  1. Chuy’s (CHUY) is breaking out as it clobbered earnings estimates. The Tex-Mex food chain had flat profit growth in the last fiscal year, and is now back on the road again after posting profit growth of more than 50%. I think CHUY will run higher because people like Chipotle so much. Here’s an article on Chuy’s telling more about the story.
  2. Acadia Healthcare (ACHC) runs psychiatric centers here in the US and in the UK. The company is also breaking out after beating the street. ACHC is a top growth stock right now, typically ranking #1 in Investors Business Daily’s top growth stock list. The downside here is the P/E is high, but the company is growing fast because it’s acquiring other operators and that’s giving a big boost to profits.
  3. Cognizant Technology Solutions (CTSH) is also breaking out after beating the street and upping guidance. This Indian IT outsourcer is one I have owned on and off for many years. CTSH is not as sexy as the other two stocks, as its only a 20% grower. It’s also in the Conservative Stock Portfolio.
  4. I will also sell AutoHome (ATHM) from the Aggressive Growth Portfolio because it is down today after posting profits that beat expectations. ATHM, a Chinese auto site, will be reviewed next week in-depth, and I will evaluate whether to hold on to or sell the stock in the Growth Portfolio
David Sharek David Sharek is stock portfolio manager and CEO of David believes a company's profits ultimately drive the price of its stock. His book The School of Hard Stocks can be found on