Salem Capital Management Inc Q2 2022 vs. Q3 2022 13F Holdings: Analyzing Changes in Top Stock Picks

Salem Capital Management Inc is a well-known investment firm that manages billions of dollars in assets for its clients. As of Q3 2022, the firm's top holdings included Microsoft, Merck & Co., and Pfizer Inc. However, looking at the Q2 2022 vs. Q3 2022 13F holdings comparison, it's clear that there have been some significant changes in the firm's stock picks. In this article, we'll analyze the changes in Salem Capital Management's top holdings and what they could mean for the firm's portfolio.

Microsoft: Down 10.1%

Microsoft has been a favorite pick among investment firms for quite some time, but Salem Capital Management Inc has reduced its holdings in the tech giant by 10.1% from Q2 2022 to Q3 2022. The move may be due to the fact that Microsoft's stock has already risen significantly over the past year and could be considered overvalued by some investors.

Merck & Co.: Up 0.2%

Merck & Co. is another top pick for Salem Capital Management Inc, and the firm increased its holdings in the pharmaceutical company by 0.2%. This move could indicate that the firm believes Merck & Co. is undervalued or has growth potential in the coming months.

Pfizer Inc.: Down 16.5%

Pfizer Inc. has been in the news a lot lately due to its development of the COVID-19 vaccine. However, Salem Capital Management Inc reduced its holdings in the company by 16.5% from Q2 2022 to Q3 2022. This could be due to concerns about Pfizer's stock being overvalued or the firm looking to diversify its portfolio.

Bank of America Corp.: Down 3%

Bank of America Corp. is a top financial pick for Salem Capital Management Inc, but the firm reduced its holdings in the bank by 3% from Q2 2022 to Q3 2022. This move may be due to concerns about the economic outlook or concerns specifically about Bank of America's performance.

Honeywell International: Down 4.2%

Salem Capital Management Inc reduced its holdings in Honeywell International by 4.2% from Q2 2022 to Q3 2022. This could indicate concern about the company's future growth potential, or it may simply be a matter of portfolio rebalancing.

Weyerhaeuser Co.: Down 13.8%

Salem Capital Management Inc reduced its holdings in Weyerhaeuser Co. by 13.8% from Q2 2022 to Q3 2022. This move may be due to concerns about the housing market, as Weyerhaeuser is a leading player in the timber and building materials space.

Cisco Systems: Down 6.2%

Salem Capital Management Inc reduced its holdings in Cisco Systems by 6.2% from Q2 2022 to Q3 2022. This could be a signal that the firm is reducing its exposure to the tech sector in general, or it could reflect concerns about Cisco's future growth potential.

Conclusion

Salem Capital Management Inc's portfolio changes in Q2 2022 compared to Q3 2022 reflect a combination of concerns and adjustments. It's important to note that portfolio changes are not necessarily an indication of the quality of the stocks in question, but rather a reflection of a firm's strategy. As always, investors should do their own research before making any investment decisions.