Gjensidige Forsikring went ex-div today so I added to my underweighted position on it with a purchase of 80 shares for 126,90 NOK per share. Nothing has really changed with the company. It’s a company I would describe as solid. Nothing really spectacular there but it’s good enough valuation for good enough company.
Link: https://www.gjensidige.no/group/investor-relations/dividend-policy
Yet another manual DRIP substitute with a purchase of 50 additional shares of Telia Company for 3,70 EUR per share. Telia is still fairly valued but it’s getting to be way too overweight position in my portfolio. In that sense dividend reinvestment makes sense.
As I mentioned earlier, my broker has a campaign for small purchases with 0,99 EUR transaction fees. This made it possible to execute manual DRIP operation on Fortum Corporation with a purchase of additional 15 shares for 13,10 EUR per share. It’s a shame that we can’t properly DRIP here but this will have to do for now. Telia Company and Sampo might get similar treatment in coming months.
My broker started a campaign for orders below 200 EUR. Such orders will have transactions fees of 99 cents which is nice enough but unfortunately applies only for Helsinki stock exchange. Positive trend anyway even though it’s just a temporary pricing plan. Last month was unusually busy on the purchasing side so I wasn’t planning to buy anything until next month but since this campaign came up I decided to buy 100 shares of Telia company for 3,90 EUR per share (with two separate orders each for 50 shares).
Addition to my ever growing Sampo position with a purchase of 30 shares for 43,10 EUR per share. Nothing has really changed lately and the investment thesis is intact. Exceptionally well managed and investor friendly company which always tends to trade with a premium. Rightfully so I might add. This purchase was actually done marginally above my buy range but no point counting pennies at this point. There’s a chance that the management is cooking up something new either with Nordea position they hold or with IF & Topdanmark insurance side. Relatively high Nordea exposure is the only downside so I might have to consider trimming some of it at some point. Don’t see a real point in that with the current valuations though. Nordea trading in the neighbourhood of 13 EUR per share would make it harder to avoid such ideas.
Recently I sold out on Deere Company as I didn’t like the ATH valuation near the bottom of the cycle. I expected to able to buy back the shares but, as these things usually go, ended up selling too soon. At the time I also initiated secondary position related to farming. It’s a bit different kind of play through fertilisers but Yara International fills that spot in the portfolio just fine. Today I decided to add on the position with a purchase of additional 30 shares for 314,50 NOK per share. Their latest report wasn’t something to call spectacular but it was decent enough. Their dividend distribution was a disappointment for some but personally I kind of like how strictly they applied their plan for payout ratio. I have no doubt this company will do just fine in the long term as the cycles turn.
It’s getting really difficult to find decent valuations especially from the US. Current political situation on both sides of the pond is also a challenge. Trump administration and big pharma is a play that I’ve had hard time to justify for myself. Then again I’ve anticipated significant repatriation of assets during the next years for multiple major US corporations. All this together with a very decent report from Pfizer (NYSE:PFE) tipped in favour of initiating a starter position on the company. Today I bought 70 shares for 32,36 USD per share. It remains to be seen if I’ll build a full position on it but this should be keep the company on my radar for the next months and quarters.
Link: Pfizer press release
Omega Healthcare Investors reported their earnings and dropped around 5%. Reported numbers were fine but guidance was considered weak as it’s supposed to be flat for FY2017. That would be acceptable as well given the current valuation which is still indicating them to be significantly undervalued. I personally consider the guidance as the worst case scenario and decided to buy additional 35 shares for 30,97 USD per share. There are some real risks involved but long term case is still very much there for me.
http://seekingalpha.com/news/3241823-omega-healthcare-tops-estimates-sees-flat-affo-year
If I had to choose one European company to put my money into, Sampo would be a strong candidate. So I decided to increase my European exposure with a purchase of 50 additional shares for 42,99 EUR per share. As a valuation it’s acceptable in the current environment. Only downside is that it increases my exposure to Nordea Bank even further. Not necessarily a bad thing but a bit on the risky side. I do suspect that Wahlroos & Stadigh is cooking up something new. There were some rumours about Nordea merger but who knows if that will ever materialise. I suppose they will eventually take control of Topdanmark on the insurance side but that’s yesterdays news really. I just have a feeling that they are up to something that will be very lucrative and perhaps will go through during the next couple of years. Meanwhile better economical environment (interest rates) will support Nordea and dividends from Topdanmark will help to increase the distributions for next couple of years.
I’ve been thinking about this move for quite some time now. I generally don’t like to sell my holding but I suppose every rule has an exception. I originally opened positions in certain bond-like stocks mainly to park money in order to benefit from strengthening dollar. Colgate-Palmolive served that purpose well and most likely would have continued to do so. In general I don’t like to time markets but we are living exceptional times at the moment. Should there be a market correction perhaps triggered by Mr. Trump, I prefer to have this extra ammunition in place for that. And should there not be a market correction, such short term correction might occur for single companies. Defence and space is something that I would like to increase my position in. Then again it might make sense to lock in some of the forex gains by converting dollars back to euros if my forecast about parity ends up being accurate. This remains to be seen.
This was the reasoning behind the decision to sell my 50 shares of Colgate-Palmolive for 64,75 USD per share. In retrospect this should have been done some months ago when the stock was ridiculously expensive. During my ownership I collected 223,50 USD as dividends. I originally paid 65,37 USD per share but currency changes resulted almost 30% profits.