Investments

Transferring NEL from primary portfolio to secondary portfolio proceeded with a purchase of 1450 shares for 4,65 NOK per share. This brings the total share count back to the original 10000 shares which is also my target level. This planned transfer was something that I could do in tax efficient manner but things got a bit complicated with Norwegian tax authorities. They are planning to show some disrespect for the tax treaty between Norway and Finland with less than ideal handling of dividend taxes for foreign individuals. This means that I’ll likely be forced to exit all my Norwegian positions as the burden of claiming back taxes is too big and potentially too expensive if the process requires costly documentation. Selling all my positions will (with current valuations) trigger some taxes as I don’t have enough losses for all the profits. I suppose that’s a positive problem to have but it might also mean that I’d have to prioritise dividend paying Norwegian positions over NEL and postpone this transfer operation. I’ll have to some calculations before making up my mind.

Sampo was on the red today so I decided to buy additional 25 shares for 40,49 EUR per share. There’s really nothing new to say about Sampo. Solid company with some hopefully short term problems with Nordea. I also sold 3000 NEL shares for 4,568 NOK per share from the primary portfolio. NEL was up today so I decided to lock in some gains in the primary portfolio. I’ll slowly transfer NEL shares to secondary growth portfolio hosted in Nordea and try to keep the total share count close to the original ten thousand shares.

NEL Hydrogen is about to release their quarterly results. It’s hard to say which way the stock moves given the overall market volatility but if there’s a positive reaction, I’ll try to sell my position in primary portfolio and buy back the shares gradually in the secondary portfolio. In preparation I bought today additional 400 shares for 4,34 NOK per share for the secondary portfolio. Most of the market were in recovery mode today but NEL wasn’t. Let’s see if the stock moves beyond 5 NOK per share level within a week.

3M Company reported quarterly results today and it wasn’t pretty. Most of the stocks were down today and 3M was no exception with 8% slide. Sure the results were  a disappointment but this market reaction appeared to be an overreaction. Therefore I decided to buy additional 5 shares for 185,00 USD per share. It’s not a cheap valuation but then again 3M alway tends to trade with a premium.

See: http://investors.3m.com/news/press-release-details/2018/3M-Reports-Third-Quarter-2018-Results/default.aspx

Both Nordea Bank and Sampo have been dropping lately – or more likely Sampo has dropped because of Nordea. Current valuation appeared too good to pass so I bought additional 25 shares for 40,10 EUR per share. It’s hard not to sell other positions to load up on both but I’ll try to avoid going into extremes with either one as both have overweight status in my portfolio.

This one is a bit of a wildcard for the secondary growth portfolio. I decided to buy a tiny uranium position in the form of UEX Corporation of which I bought 1500 shares for 0,22 CAD per share. High risk play partially motivated by the recent IPCC report on global warming. Nuclear energy makes a lot of sense and since China is building new capacity, there’s good enough chance for a turn in uranium cycle.

See: https://www.uex-corporation.com/investors/investor-highlights/

Nordea Bank has been dropping lately as has the nordic banking sector as a whole. Main reasons has probably been the situation in Italy and the money laundering issues in general. This resulted a very interesting valuation for Nordea Bank. Therefore I decided to add 200 shares for 8.80 EUR per share. This valuation provides, in my humble opinion, nice upside potential and excellent yield for coming years. Then there’s the potential for MA by Sampo.

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.