Recent Activity: Sampo Plc, Citycon Oyj, Nordea AB and Fortum Oyj

Busy day today. My primary broker has campaign for small orders and problems in Italy were causing falling valuations here and there. Especially banking and finance sector was hit. I decided to seize this opportunity and bought 200 shares of Citycon for 1,856 EUR per share and 10 shares of Sampo Plc for 42,05 EUR per share. In addition to this I sold my Fortum shares held in my secondary account and replaced those with 72 shares of Nordea Bank AB bought for 8,255 EUR per share.

 

Recent Buy: Loudspring Oyj

Loudspring announced today that the CEO will leave to company and chairman of the board will replace him. They claim that it was mostly for personal reasons but who knows. It could very well be strongly recommended action for the CEO and/or natural development given the new strategy. I decided to buy additional 160 shares for 1,236 EUR per share. Next 10 years or so will tell if this was a wise move to make.

See: http://news.cision.com/loudspring/r/loudspring-appoints-new-ceo,c2514697

Recent Buy: 3M Company

There are companies that tend to always trade with significant premiums. Sometimes it’s because of the undisputed quality and 3M Company sure fits that description. Today however we saw significant drop in the share price after slightly lowered guidance. I wasn’t really planning to buy anything especially since I already increased my stake in Philip Morris but since this is a rare occasion, I decided to open a new position with a purchase of 20 shares for 199,80 USD per share. This barely fits under the debt balance limit I’ve defined in my strategy but barely is enough in this case.

See: https://seekingalpha.com/news/3347916-3m-slips-lowering-guidance-range

Recent Buy: Philip Morris International

I’ve been thinking about my Philip Morris position for quite some time now as it has been quite modest but there really hasn’t been any great possibilities to steal additional shares with cheap enough prices. Today they reported results and, despite quite OK results, the share price tanked over 12%. This presented a situation where I had to make up my mind. It has plenty to love as a company: it’s an addiction business with strong R&D with their heated tobacco line. They do business outside of USA which perhaps provides some protection from legal issues. Though it should be noted that the very same protection might hurt in short term should they build a business out of weed as it’s probably going to happen first in the US. Factoring in all this I decided to buy additional 25 shares for 88 USD per share.

See: https://www.marketwatch.com/story/philip-morris-tops-profit-estimates-but-revenue-falls-short-2018-04-19

Recent Buy: Loudspring Plc

Small maintenance purchase as I bought 40 Loudspring shares for 1,478 EUR per share. This is a high risk position which I intend to build up with extremely small orders. It’s difficult to value a company such as this as there’s not much data available from the companies they own. Therefore I’ll keep the position small and will analyse the results in 10+ years.

Recent Buy: Fortum Corporation

Portfolio maintenance buy for March consisted of 10 Fortum Corporation shares bought today for 17,68 EUR per share. Nothing special here as I’m still in mainly in maintenance mode. Plan is to make these small purchases of Fortum, Loudspring and probably Citycon until debt level improves. It has improved nicely as the current D/E ratio is 0,0725 which already is below my target in normal market conditions. It’s another topic if we’re in normal market conditions and I really haven’t yet decided if I’m aiming 0,05 ratio or even eliminating the whole debt component.

Recent Swap: Yara for Telenor and NEL Hydrogen

I wasn’t expecting too much from Yara but the results they reported were still a slight disappointment. Dividend cut was also proposed which doesn’t fit well for a income oriented dividend growth portfolio. Therefore I decided to sell all my 80 shares for 335,70 NOK per share. I redeployed the money right away and bought 100 Telenor shares for 173,10 NOK per share and 3000 NEL Hydrogen shares for 2,858 NOK. This in part implements the short term strategy in which I plan to focus on digital services (Telenor) and sustainable energy (NEL) among others. This will also protect the dividend income stream received in NOK as lower yield of Yara was replaced with higher yield of Telenor. NEL doesn’t pay a dividend so it’s a long term value play with some M&A potential.

See: https://www.nasdaq.com/article/norways-yara-q4-lags-forecast-proposes-dividend-cut-20180208-00137

Recent Buy: Citycon Oyj

Second unplanned purchase for the week as Citycon dropped today after earnings. Considering the overall market phase and key metrics, this purchase made enough sense for me to pull the trigger regardless the deleveraging plan. I bought 1000 shares for 1,94 EUR per share. This and previous Apple purchase will pretty much make up the whole dividend reinvestment for the year and it’s not even March yet.

See: https://www.citycon.com/sites/default/files/citycon_financial_review_2017.pdf

Recent Buy: Apple Inc.

Long awaited pullback happened yesterday when US markets saw a record drop in points. This is likely to continue today. I decided to make an unplanned purchase and bought 20 shares of Apple for 158,00 USD per share. I considered it to be reasonably priced even before this so this made the decision even easier. I consider the position to be full now but might overweight it in case the marked goes insane. Apple fits in my long term plan in which I will focus especially on certain sectors: sustainable energy, water, AI & digital services and space exploration.

Recent Swap: General Mills for Realty Income Corporation and VEREIT

Today I decided to sell my moderate General Mills position mainly because of the slightly stretched valuation (even though the company is likely M&A participant) and recent drop in REIT valuations. I sold all my 50 shares for 59,661 USD per share and bought 20 shares of Realty Income Corporation for 53,0799 USD per share and 190 shares of VEREIT for 7,15 USD per share instead. This doesn’t hurt the dividend income in short term (hopefully) and allows a slight deleveraging as a bonus. Especially VEREIT appears to be undervalued though it shouldn’t be noted the legal issues have not been settled yet which is a risk of course.