Today I am adding semiconductor components and solutions company ON Semiconductor Corp. (NASDAQ: ON – $21.43) to the aggressive portfolio. ON replaces Foot Locker in this account, which was removed back in August. I believe that the semiconductor space and ON Semiconductor, in particular, provide reasonable value at current levels. I will elaborate on my rationale for ON in an upcoming post.
While the addition of ON over-weights the technology sector, the four companies (Applied Materials, Cerner, Jabil Circuit and ON Semiconductor) represent different industries serving a number of distinct markets: Semiconductor, Software Services and Display Equipment; Healthcare IT; Electronics Manufacturing; and Semiconductors, respectively. However, to better weigh the portfolio, I am making the following changes to the percentage allocation model.