I decided to restructure my finances including mortage. In my current strategy debt to equity ratio is one key metric. I plan to include mortage in the debt component but exclude the attached real estate from equity. This is because co-owned real estate used as home is by no means liquid asset. In theory it doesn’t make sense to pay off cheap loans too soon but there are many factors to it. One is the current cycle phase and trade war in general which makes this likely a decent time to lock in some tax efficient gains and play safe. Therefore I sold today 650 shares of Telia Company for 41,18 SEK per share (roughly break even), 70 shares of Apple Inc for 202,1101 USD per share (roughly 3000 EUR profit plus dividends which I can offset with old losses) and 2500 shares of NEL ASA for 6,68 NOK per share. There’s a good chance that I’ll regret these at least for short term. I still see a 300 USD per share bull case for Apple but then again it’s very much possible that I can buy these back as I expect the trade war issue to remain well beyond US elections next year. NEL is a question mark but I kept 3000 shares just in case my bull thesis for 2025 plays out the way I expect.
Pfizer is about the spin-off it’s generics business and the impact on company profile and dividend strategy remains to be seen. This move is too complex for me understand in detail but I expect further short term pressure on the share price while this saga plays itself out (as many conservative shareholders will wonder how this will play out). I decided to protect the invested capital and sold all 100 shares for 35,44 USD per share (originally bought in the 32,36-33,79 range in 2017). During this time I received 304,00 USD (pre tax) in dividends. I used this capital to buy 10 shares of 3M company for 163,12 USD per share and 20 shares of EPR Properties for 76,77 USD per share. 3M is what it is. Not cheap but acceptable. EPR is a monthly paying REIT which is reasonably recession resistant and should benefit from the insanely low interest rate environment. I might add GEO Group as well since prison REIT should be quite a solid bet going into recession.
Just another maintenance purchase. My existing NEL position wasn’t even hundreds so I added to missing 70 shares for 6,975 NOK per share. These small maintenance purchases are mainly done to make sure that I have enough activity on the secondary portfolio to keep the costs down (at least single event for every three months). Other that there’s not much to say about this. I still think the hydrogen mega trend is in the making and NEL is well positioned. It’s a shame that they will probably be bought out eventually but let’s see how long it will take and what kind of terms it will have.
Yet another tiny maintenance purchase. Today I bought additional 100 Nexgen Energy shares for 2,17 CAD per share and 10 Hexagon Composites shares for 41,20 NOK per share. Nothing new here as hydrogen and uranium sectors are currently the most interesting plays I know. I’ll continue to make these small purchases monthly and will consider additional bigger purchases case by case. I’m also considering additional positions within these sectors as fuel cell manufacturer(s) would fit in nicely and uranium sector in general is really difficult one to pick winners in.
I was originally thinking about initiating a position on Powercell Sweden to complement the primary hydrogen position in NEL ASA. I decided to skip on it for the time being and initiate a position on Hexagon Composites instead. I’m still looking into fuel cell manufacturers but let’s see if I’ll ever pull the trigger. For now I will most likely focus on building a minor position on Hexagon. This initial position consists of mere 70 shares bought for 30,85 NOK per share.
Small addition to the speculative growth portfolio. This uranium play also complements the existing UEX position. I’ll keep these positions small so I bought just the initial 200 shares of Nexgen Energy for 2,07 CAD per share. Uranium is one of the sectors I’m focusing in the secondary portfolio as it’s providing one possible solution for the climate change actions but it’s also very interesting just because of the cyclical nature of it – when the cycle turns, it really turns.
I’m repeating myself but I bought additional 200 NEL shares for 4,958 NOK per share. I’m nibbling away on a slow pace for now as I’m also considering alternative hydrogen stocks to spread the risk a little bit. Having said that, I’ll most likely postpone purchases in the main dividend portfolio to see how the most significant risks for global economy will play out. Those would be mainly the trade deal deadline between China and US but also the deadline for brexit deal. Meanwhile I’ll mainly deleverage and wait for possible market corrections.
Small maintenance purchase once again. Today I bought additional 130 shares of NEL ASA for 5,115 NOK per share. Slowly nibbling along towards the target position size of ten thousand shares. Then again I’ve been thinking about spreading the hydrogen play across multiple companies such as Hydrogenics, Powercell Sweden, Ballard Power Systems. Those four would cover the speculative growth aspect and could be accompanied by Air Products and Chemicals in the primary dividend portfolio.
Plans are made to be executed and this one is the monthly maintenance purchase for the secondary growth portfolio. I bought 100 shares of NEL ASA for 5,28 NOK per share. Tiny purchase but I’m hoping to get some below 5 NOK. Let’s see if that happens as the sector seems to be steaming ahead nicely.
Busy day today. Apple Inc. posted a revenue cut yesterday and dropped post market and today. I was tempted to add on it but decided to execute a swap with remaining Diageo shares. I sold all the remaining 30 shares for 138,53 USD per share. In retrospect I should have sold all of the shares back when I sold the first 20 shares but that’s not a big deal. I still consider the the valuation to be a bit stretched and yield is on the low side though growing. I deployed some of the money back to Sampo Plc and Apple Hospitality REIT – both equipped with seemingly much better valuations and yields. I bought additional 100 shares of Apple Hospitality REIT for 14,19 USD per share and 30 shares of Sampo Plc for 38,36 EUR per share.
Now that I’ve exited the whole Diageo position it’s time to check to results. I bought to original 50 shares for 5497,98 USD and sold the shares for the total of 7048,17 USD. Realized capital gains were therefore 1550,19 USD before taxes and commissions. Total dividends received came in at 435,01 USD before taxes. This is a result I’m very pleased with. I still like the company and it’s very likely that I’ll buy back these shares if the price comes down to 110 USD per share range.