Month: April 2024

This is complicated one but I decided to buy additional 30 shares of Pfizer Inc. for 25,78 USD per share. Pfizer has been dropping for awfully long period of time. In a way for a good reasons but personally I see current valuation as a somewhat significant overreaction. There are real challenges with portfolio and potential for legal issues especially from the COVID-19 vaccines. Portfolio problems are hopefully short-term issues and vaccine related contracts should guard the company reasonably well. Latter is naturally just speculation as reality will set in only after someone tests those in court. My thesis is quite simple: Pfizer is still one of the big dogs and I prefer to buy pharmaceuticals when they are down due to patent cliff or for whatever reason that is typical for the sector. Each one of such positions is relatively small and I think of these as a basket of pharma stocks. For now Pfizer smells a bit of a yield trap as current yield is about 6,4% but let’s see how this plays out. Hopefully yield will drop towards historical average as valuation improves.

Dividend re-investment done in advance as this is effectively re-investing remaining dividends from Fortum and some that will be paid next week (CapMan and Kesko). Nothing special here as the thesis is same: I’ll just slowly nibble on Kesko unless I see valuations closer to 16 EUR per share. This time around I nibbled 20 additional shares for 16,99 EUR per share.

I originally initiated position in Castellum as a short term dividend turn around play with currency speculation twist. Both aspects lead to a failure as no turn around has yet been seen in dividend and – while I still think it is likely outcome – it will likely take still quite some time to materialise. Currency play failed as well since SEK has been deteriorating since this purchase. Today I decided to exit this position with a minor loss and bough additional 100 shares of Nordea Bank. I sold Castellum shares for 137,60 SEK per share and bought Nordea shares for 10,70 EUR per share. This move simplifies portfolio a bit and increases projected dividends without injecting new capital or re-investing received dividends. As a whole I expect Nordea to perform quite well for next couple of years.

Dividend re-investment time once again and this time I’m even investing back to the same company. Nordea paid and I bought additional 100 shares for 10,74 EUR per share. Reasoning is quite simple: despite times being tough, Nordea seems to be very solid company with very reasonable valuation. Sure, interest rates are likely going down from here and it will have negative impact on Nordea. Yet they are buying back shares and have executed very well in zero interest rate environment in the past. Even after considering these headwinds current valuation seems to be on the low side (as it has traditionally been for European banking sector in general, often for a good reason).

Dividend re-investment time with additional 20 shares of Kesko Oyj (B series) bought for 16,74 EUR per share. Nothing special here as Kesko is in my list of additions for this year. I would like to see per share price closer or even below 16 EUR but these levels are fine as well. Challenging times for Kesko and for our local economy. Furthermore, competition has taken market share from Kesko in certain segments but for long term I consider current valuation to be fair.