7/7 - Looks like Zacks came out yesterday with a good plug for MIG, for what it's worth.
We made six changes to the portfolios last week; adding two stocks and deleting four. We added one each to the Focus List and the Growth & Income portfolios, while three of the four deletions were from the Growth & Income portfolio. There were also changes to the Timely Buys list.
We added two insurers last week - Assurant (AIZ) to the G&I and Meadowbrook Insurance (MIG) to the Focus List - to gain exposure to a relatively stable sector in the current turbulent environment. Both companies offer solid earnings momentum and attractive valuations at current levels.
Our sole Focus List deletion was Maidenform Brands (MFB) to lock in our attractive 55% gain in the stock in the face of fast-emerging weakness in this retail-centric name. The company's fundamentals look good and we wouldn't be averse to reconsidering it a later date.
Our exit from L-3 Communications (LLL) followed weak guidance and its inability to win a government contract. We suspected that the Zacks Rank would follow the recent negative estimate revisions.
The other deletions - Alcon (ACL) and T. Rowe Price (TROW) - were prompted by Zacks Rank moves to #4 (ACL) and #5 (TROW). We always exit positions that have fallen to a Zacks #4 Rank ('sell') or Zacks #5 Rank ('strong sell') to remain consistent with the Zacks investment framework.
Just a follow-up. I went to the Zacks site and they gave a brief description of their "Focus List", which MIG was just added to yesterday;
"Focus List The Focus List is a portfolio of stocks, hand-selected by Zacks that we feel have the best potential to outperform the market over the next 12 months. Based on Zacks Recommendations, they are chosen from a number of quantitative and qualitative factors such as the Zacks Rank (i.e. EPS revisions), earnings growth, operating margins, competition, debt, economic factors and industry conditions."
One more note, the Focus List has returned 13.25% annually