Month: July 2017

Recent Buy: Fortum Corporation and Sampo Plc

JP

Planned maintenance purchase since Q2 reports caused minor corrections for both Fortum and Sampo. I’m increasing my position in Sampo mainly because I might eventually trim or even eliminate my position in Nordea due to tax reasons. Sampo allows me maintain some of the exposure in that case and in general is exceptionally well managed company. Fortum is in a position to benefit from major trends but has way too much political risk. I most likely will not increase my position on it unless there are significant changes in valuation and/or market situation. In addition to these purchases I trimmed the portfolio debt a little bit and current D/E ratio stands at 0,135 target being 0,1 or less.

Summary:

  • Fortum Corporation 14 shares for 13,98 EUR per share
  • Sampo Plc 4 shares for 45,89 EUR per share

Q2/2017 Results

JP

Second quarter is gone without any major issues. During this quarter I decided to move the portfolio into a conditional maintenance phase. With this I’m aiming to reduce the portfolio debt which is on the high side after a recent debt restructuring. Conditional in that sense that I will anyway buy additional shares if companies in my watch list drop below my thresholds. While waiting for that I’ll use majority of new capital to pay down the debt and in addition make few mainly small maintenance purchases. Once the debt level hits the targeted 0.1 D/E ratio I’ll replan my purchases. Given the current market situation I would kind of prefer having the debt ratio at 0.05 level or even eliminate the debt completely.