Major U.S. market averages ended 2017 on a positive note, with all major averages closing higher over the past week.
The S&P 500 closed the week 0.59% higher, while the Dow Jones jumped 0.59% and the Nasdaq rose 1.26%. The MSCI Emerging Markets Index shot out of the gate, jumping 3.34%.
Emerging markets remain out of favor with U.S. investors. That may be about to change. After all, emerging market stocks trounced the U.S. stock market in 2017. The MSCI Emerging Markets Index ETF (EEM) soared 37.28% compared to the 21.70% gain for SPDR S&P 500 ETF (SPY).
Your Smart Money Masters portfolio had a solid week. Wilbur Ross’ Navigator Holdings (NVGS) rose 6.70%. Prem Watsa’s BlackBerry Ltd. (BB) gained 6.56%. George Soros’ Liberty Broadband (LBRDK) jumped 3.96%.
An additional four positions, Texas Pacific Land (TPL), Vistra (VST), Baxter International (BAX) and Restaurant Brands International (QSR), each gained at least 3%.
The three biggest gainers in your Smart Money Masters portfolio are Fiat Chrysler Automobiles N.V. (FCAU), BlackBerry Ltd. (BB) and Berkshire Hathaway (BRK-B). These positions are up 58.61%, 33.30% and 20.20%, respectively.
Five of your positions are trading below their 50-day moving averages and are currently HOLDs.
Portfolio Update
Prem Watsa, “Canada’s Warren Buffett,” has a massive 42.71% bet on BlackBerry Ltd. (BB). That bet now looks to be paying off.
BlackBerry shares jumped above $12 for the first time in nearly three years. That’s because the company has transformed itself successfully from a fading smartphone hardware company into a cutting-edge cybersecurity software outfit.
The company’s recent earnings tell the story. For the quarter that ended in November, software revenues rose to a record $190 million, while handheld revenues fell to only $6 million.
Total revenues came in at $226 million — better than the $212 million analysts had been expecting. Adjusted earnings per share totaled $0.03, beating estimates for the second quarter in a row. Guidance for the fiscal year ending in February was also positive.
Sincerely,
Nicholas A. Vardy
