Minor compensation for the closed Deere position with a purchase of 120 shares of VEREIT for 8,29 USD per share. Most of the upcoming rate hike should be already priced in but there might still be a minor correction in REIT sector when FED actually pulls the trigger. There are still some risks from the ARCP fiasco but in general the new management has done terrific job to turn the company around.
These things don’t usually play out well for me but I decided to sell out my position on Deere Company today. They beat the expectations with a significant margin and the stock shot up 10 percent. My original cost basis was around 84 USD and today I sold all 45 shares for 101,25 USD per share. During my ownership in the company I received 175,20 USD as dividends.
Now I don’t typically like to sell any of the companies I still believe in. With the current valuation however I feel that there’s a good chance that I can buy back the shares for much less within the next couple of weeks or months. I’m not totally sure if I’ll do that but it’s an option if the price drops enough. I really don’t like to speculate but I can accept it for the cyclical positions and especially for cyclicals which seems to get overvalued.
This was a free trade as my broker had a campaign for S&P 500 companies. This was also the day of the US elections which ended with a mild surprise as Donald Trump won the presidential seat. I expected stocks to take a nose dive but instead got a lesson on the difficulties in predicting any short term movements in the market. Realty Income Corporation however has been going down for a while now so I decided to buy 6 shares for 56,62 USD per share. Once again I dumped my existing USD position on a free trade to avoid currency exchange fees as well.