Turmoil in Russia presented some unexpected possibilities today. On December 16th I bought 100 shares of Nordea Bank AB for 8,88 EUR per share and 200 shares of TeliaSonera AB for 5,04 EUR per share. Both transactions averaged down on existing positions. Nordea is now on slight overweight and TeliaSonera is a solid full position. Russia is a risk for Nordea but the stock seems to be very attractively valued at these valuations.
On December 15th I bought another 100 shares of Nordea Bank AB for 9.45 EUR per share. This was an existing half position which was now increased to full position. Similar move will be made for TeliaSonera AB at some point (most likely during Q1/2015).
Recent turmoil in commodity stocks resulted extra transactions which I didn’t have planned in my previous shopping list. This might not be a problem after all since I’ve decided to wait for better entry point for Munich Re (or some alternative european insurance company). Meanwhile I hope to increase my position on TeliaSonera AB, restore cash reserves consumed by the extra transactions and start monthly purchases on existing positions to maintain current weightings in the portfolio. On the other hand oil might present some unplanned entry points for companies such as Exxon and Chevron.
On December 11th I averaged down on BHP Billiton Plc and bought another 30 shares for 42,71 USD per share. There are some short term risks involved here but looking at this on 10+ years perspective I consider this to be a sweet deal.
Plans are made to be changed. Recent changes in commodity prices presented an opportunity too good to pass. Oil price has been dropping heavily and most of the associated companies are feeling the heat caused by it. BHP Billiton has been the crowd favorite in DGI community lately and no wonder why. It’s very diversified company trading near 52 week low valuation with very low P/E, nice yield and relatively low payout ratio. It was easy to justify opening a new position by purchasing 30 shares for 47,39 USD per share on December 1st.
HP Billiton Limited engages in the discovery, acquisition, development, and marketing of natural resources worldwide. It produces iron ore, metallurgical and energy coal, conventional and unconventional oil and gas, copper, aluminum, manganese, uranium, nickel, and silver deposits. The company also explores, develops, produces, and markets petroleum with operating assets located in the deep water Gulf of Mexico, onshore U.S., and Australia, as well as in the United Kingdom, Trinidad and Tobago, and Pakistan; and holds potash exploration rights to approximately 14,500 square kilometers of prospective ground in the Saskatchewan potash basin in Canada. The company was formerly known as BHP Limited and changed its name to BHP Billiton Limited in July 2001. BHP Billiton Limited was founded in 1851 and is headquartered in Melbourne, Australia. BHP Billiton Limited operates as a subsidiary of BHP Billiton Group.