This is a company I’ve had my eye on since last July. It dropped heavily after negative Q2 report but there was something strange about those results and communication in general. One possible reason could very well be the management stock options as described in detail here (only in Finnish though): http://nallensijoitusblogi.blogspot.fi/2016/07/Betssonoptio-ohjelmaostopaikka.html. I don’t know if that’s really the case. If it is, it could be considered to be illegal or at least less than ethical but for a risky vice stock position I don’t mind positioning myself right between illegal and unethical. It does however present a very strong incentive for the management to work on the stock price going forward. This is the main motivation for a purchase of 230 shares for 88 SEK per share. I’ve been also looking for a secondary SEK position and increase in vice holdings so this fits for that as well.
Investments
Recent Buy: Coca-Cola Company
Unusually small purchase of 8 shares of Coca-Cola for 43,81 USD per share. Coca-Cola wasn’t really in my buying range but since my broker had free trades for selected companies, I decided to dump my existing USD position on it. This way I avoided even the currency exchange fees so it truly was a free trade.
Recent Sell: Raisio PLC K
Implementation of slightly tweaked strategy for the rest of the year by selling my position in Raisio Plc. Position consisted of 350 shares now sold at 4,00 EUR per share which translates to a minor loss as well. This decision was motivated firstly by the intent to reduce my investment debt and secondly by the overall performance of the company. There’s not much to complain really but there has been some negative news going forward and since I never was willing to build a full position on the company, the logical step was to eliminate the whole position. Overall trading volume was also a minor issue. I do like my positions dull and boring but Raisio was too much of it and it has been like that since the 90’s.
Recent Buy: Telia Company
Small addition to existing position with a purchase of 180 shares for 4,03 EUR per share. Next candidate is Olvi Plc if the price drops enough during Q4. Alternatively I’m considering to reduce the debt load a little bit.
Recent Buy: Nordea Bank AB
I’ll consider this partially as the one allowed risk position in portfolio. That’s the reasoning behind the decision to buy additional 90 shares of Nordea for 7,05 EUR per share. The valuation just seems to be too good to pass. It remains to be seen if there’s a reason for it. I do expect the next couple of years to be difficult but my target is significantly longer than that.
Recent Buy: Sampo PLC A
Brexit aftermath part 2: new position in Sampo Plc. As most stocks have traded significantly lower today, I decided to initiate a new position in Sampo. Main focus is on Nordea which dropped quite a lot today. I already have a full position on it but decided to add some exposure via Sampo. This also brings in some diversification in the form of IF insurance company and Mandatum Life subsidiaries. I bought 60 shares for 35,75 EUR per share and consider that as a decent valuation for the time being. Sampo is the type of company that rarely trades with discount anyway so I’m glad to take this valuation.
For this purchase I had to dip into my cash reserves a little bit. For the next months I really have to plan my moves. Depending on the market I have the option to increase my debt load and to spend the cash reserves even more. That would however require some once in a lifetime valuations for grade A companies. For the September I have my eye on Olvi as well so until then I just might focus on building up the cash reserves. It could be either or some kind of combination of both.
Recent Buy: Diageo
Midsummer proved to be a bit different this time around. UK voted in favour of the brexit which was a bit of a surprise. Personally I expected the result to be around 56% in favour of staying in EU but the people have spoken and now it’s left for the politicians to either implement the decision or find a way to work around it.
These are the type of events that don’t occur very often. They provide plenty of uncertainty and even panic which make them potentially excellent times for net buyers. Personally I started with a purchase of 10 additional shares of Diageo for 105 USD per share. I considered it as a substitute of buying a very large pint of Guinness to celebrate this special occasion.
Pretty much everything (at least on this side of the pond) went down yesterday. My portfolio didn’t move at all as the strengthening dollar compensated pretty much all of it. For the next week I expected the downfall to continue which hopefully opens a window of opportunity to either add to existing positions or even start totally new ones. As the uncertainty is likely to go on for years, there might be plenty of the opportunities to exploit during the next months.
Recent Buy: Hennes & Mauritz AB
Yet another addition to existing position with a purchase of additional 50 shares of Hennes & Mauritz AB for 242 SEK per share. Lately there has been multiple reasonable valuations on existing positions and this was one of them. In fact this decreased my average price significantly. Today also Diageo went down enough to enter a really interesting value range. Lately I’ve been considering my short term strategy options. Slowly decreasing my investment debt load has been one option as it’s a bit over my intended 10% mark. Then again my cash position and debt potential allows strategic moves in the case of major meltdown on the market.
Recent Buy: Diageo
Long awaited addition to existing position with a purchase of additional 10 shares of Diageo (NYSE:DEO) for 110,70 USD per share.
Recent Buy: Hennes & Mauritz AB (B series)
Addition to the new H&M position with a purchase of additional 40 shares for 286,10 SEK per share. This brings the total to 70 shares. It remains to be seen if I’ll make a third purchase anytime soon. Next purchase should be from the US if I can find something with suitable valuation.