Investments

This was a bit unplanned move but state owned Solidium decided to sell 8 million shares of Kemira. They got 16,20 EUR per share which translated to a discount of about 2 EUR per share. At the time it wasn’t clear who bought these but I decided to jump in and bought additional 90 shares for the said price of 16,20 EUR per share. I didn’t consider this to be exceptionally good price but still significant drop with potential for quick rebound. Since then it was published that about 1.5 million shares were bought by Oras Invest. This is good news as they are already significant shareholders and – as family type of affair – likely in it for the long haul. Without any additional surprises or special circumstances I consider this position now to be full.

Not totally happy how things have evolved with Fortum but made a small maintenance purchase and bought 20 shares for 14,565 EUR per share. It’s a bit unlikely that I would build a full position here but possibly half position. Biggest shareholder is my main problem here but then again company itself is likely relevant for next 10 to 15 years. Valuation is not exactly bargain but decent all things considered.

Initiated a new position by buying 20 shares of Medtronic for 82,58 USD per share. This is likely a position I will build during the first half of the year depending of course how the stock moves. Thesis is very simple as stock has dropped significantly, it offers decent dividend yield and history. Company itself operates in segments which benefit from the state of general population and are therefore not likely to go out of fashion.

I missed the boat with Kemira a while back when it was significantly lower. Tried to double my position but counted pennies instead of pulling the trigger. Stock rallied afterwards and marked all time high valuation. Therefore I’m not thrilled about the current valuation but lacking better ideas made maintenance purchase of 10 shares at 14,79 EUR per share. Still have very mixed feelings about the market in next three to six months. This makes it a bit hard to make bigger moves but can’t really justify selling either. I suppose these small maintenance purchases are decent compromise while waiting.

Black Friday is not a big deal for me as I’m not into consumerism but decided to use this opportunity and reinvested dollar dividends without transaction fees. Bought additional 20 shares of EPR properties for 41,22 USD per share. Still seems quite reasonably valued if not even cheap all things considered. Sure, there are still all kinds of risks but position is quite small so overall risk is quite limited. This position comes with quite high dividend yield but all of those can’t be traps.

Sentiment is getting bearish enough for me. Someone (totally not Russia but it was Russia) blew up Nordstream I pipelines, stocks are dropping all around and have been doing so for a while now, Russia’s war effort in Ukraine is approaching later phase peak in many ways, nuclear threat is thrown around, Bank of England is already moving back to QE and list goes on and on. This is enough for me and I’ll move from holding pattern to normal purchasing mode with option to slowly scale down cash reserves. First purchase was CapMan Oyj with 900 shares bought for 2,365 EUR per share.

Turbulent times continue but I’m sticking with the short term plan as my cash reserves are otherwise getting too large. Therefore I bough additional 120 shares of Kemira for 11,75 EUR per share and additional 100 shares of CapMan for 2,59 EUR per share. Both of these positions are almost full but few additional purchases are still likely. Once remaining USD dividends for September are paid, I’ll probably add on Abbvie, Johnson & Johnson or Pfizer.

Energy crisis is escalating and European markets are feeling the pain. Euro as a currency reached new lows when compared against US dollar. I decided to buy additional 80 shares of Kemira Oyj for 11,75 EUR per share. This is not really related to the recent turmoil even though Kemira is not immune to it. Valuation seems to be decent, second dividend of the year is still coming and my main thesis (water) for building a full long term position is intact. Let’s see if I manage to complete the position during Q4.

My cash reserves are above my hard limit so I bought additional 400 shares of CapMan Oyj for 2,81 EUR per share. I find this valuation to be acceptable even though the overall situation if full of risks. This is mainly dividend play but the sector has some serious M&A potential as a bonus. It’s extremely difficult to say anything about the likelihood of CapMan being part of such activity and if it would be, it would be difficult to know on which side of the table it would be sitting on. I see significant risks on the market but will follow strategy as follows: re-invest dividends, try to limit cash reserves to current level and focus on primary DGI strategy.