Nothing new under the sun. I added 500 shares of NEL to my secondary portfolio with cost basis of 3,51 NOK per share. Primary dividend portfolio got additional 90 shares of Apple Hospitality REIT bought for 17,32 USD per share. Not much to say about either one. NEL appears to be extremely well positioned for a major shift in energy sector. Apple Hospitality on the other hand should be a great dividend payer for the next years considering the relatively high yield and monthly distribution. Overall I don’t expect the market to deliver any major profits other than dividends in short term. Therefore it fits the bill nicely but naturally there will be exceptions to that rule. I’m hoping NEL to be such an exception.
I’ve created a list of companies likely to take a beating when the next recession finally arrives. One of such sectors is probably lodging and within the sector Apple Hospitality REIT appears to have quite solid fundamentals. Therefore I consider it as safe enough to own even in the current economic environment. I didn’t want to start with too big exposure so I bought 110 shares for 17,64 USD per share. This is enough to keep me interested while waiting for the economic turn. Meanwhile I can collect quite decent monthly dividends and also have the possibility to trade it in and out since it seems to swing quite consistently between high 17’s and low 20’s.
Maintenance purchases for the secondary portfolio in the form of 100 Loudspring shares bough for 0,634 EUR per share and 600 NEL ASA shares bought for 3,6 NOK per share. The obvious risk with Loundspring has materialised lately mainly because of their portfolio company Nocart. That’s a company which may very well go bankrupt at some point but personally I’ve never considered it as the most interesting company they own. In my books Eagle Filters has claimed that spot. Having said that, Nocart has been the major driver for the share price in the past so naturally such issues have had a major impact on the share price going forward. Current valuation however seems low even though it’s impossible to really value the portfolio they have. NEL on the other hand is progressing really well. I have very high hopes for it in the next five to ten years. In my books it has all the characteristics of a prime take over candidate.