Recent Buy: General Electric Company

General Electric announced a management shake-up and shares went down about three percent. This a company that I have mixed feelings of as there’s lot to like in the long term but there are also huge risks (e.g. pensions). But since it has many traits I like, I decided to buy additional 40 shares for 23,60 USD per share. I will add more should it break the 20 USD barrier. Huge company transforming itself while everybody loves to hate it, that’s usually a situation I like to be involved in. It remains to be seen if it will eventually bite me.

See: https://seekingalpha.com/news/3299959-general-electric-3-percent-management-shake

Recent Buy: Omega Healthcare Investors, Inc.

Small addition to existing Omega Healthcare Investors position with a purchase of 20 additional shares for 31,46 USD per share. There are some political risks involved here and few clients have been in trouble lately but the overall demographic trend is so positive factor that I really don’t care for short term problems. Even with such problems the valuation appears to be very cheap so I consider the risk to be compensated.

Link: George Schneider @ Seeking Alpha

Recent Buy: Apple Inc.

I’ve been looking at Apple for quite some time now. Recent launch of new iPhone 8 and the new watch together with upcoming launch of the flagship iPhone X has been received with some mixed feeling. Stock price has reacted to this with a minor correction downwards as the launch hype really isn’t what it used to be. Flagship is likely to have very limited supply and it might cannibalise the sales of iPhone 8 models. After considering all this I’ve come to a conclusion that all this is likely just short term noise. Update cycle will be significant and overall the company is in excellent position to continue to generate massive income and also grow in multiple segments, services being a major one going forward. Therefore I decided to open an initial position on the company with a purchase of 20 shares for 151,40 USD per share. I see a strong possibility for the share price to reach 200 USD level in the first half of 2018. To support this I also upgraded my old iPhone 5S to new iPhone 8 Plus. Joking aside I’ll try to replace the DSLR camera I sold recently with the new iPhone.

Recent Trading Attempt: Fortum Corporation

Fortum came out today with a plan to buy a significant piece of Uniper. This is a decent speculation possibility which I decided to use. I sold all my 300 shares for 17,20 EUR per share with intention to buy those back once there’s more clarity and I fully understand how this fits into Fortum’s strategy. In my opinion there are plenty of unknowns here and it’s very much possible that we will see big swings presenting buyback possibilities with reduced price. In short term this also reduces the portfolio debt significantly which is a plus.

Link: Bloomberg

Recent Buy: Hennes & Mauritz AB

Old buy order was executed today as the Hennes & Mauritz AB stock dropped mainly because HSBC lowered their target price to 180 SEK per share. Funny coincidence that anonymous buyers were actively buying today. I didn’t expect this to happen right now but overall I consider this to be a decent valuation. These additional 90 shares bought for 197 SEK per share make this a full position for now.

Recent Buy: Sampo Plc

Stocks went down today mostly because of the North Korean missile experiments. I took the opportunity to deploy some of the cash from the sale of Scorpio Tankers back to market in the form of Sampo Plc. I bought additional 12 shares for 43,70 EUR per share. Mentally this might be considered as the maintenance purchase for September but let’s see what the market has in store for us as this could the beginning of mid sized correction.

I’m also looking at couple of companies I might be interested in. First of all I’m waiting for a pullback in NEL Hydrogen to open a very long position on it. Really interesting sector to be involved in as energy and transportation sectors are transforming to something new. Second company on my list is Apple Inc. Valuation seems to be quite reasonable given the size of the company and phase of the overall market. If the stars align correctly and there’s no market meltdown nor unexpected product and delivery problems, I don’t see why the stock would reach for the 200 USD per share valuation during the first half of 2018.

Recent Sell: Scorpio Tankers Inc.

I hate selling but sometimes it makes sense. In retrospect I have usually failed at the timing but a plan wouldn’t be a plan if I wouldn’t at least try to execute it. With that in mind I decided to sell all my Scorpio Tankers (NYSE:STNG) shares for 3,583 USD per share which translates to a minor loss. Looking back couple of months the stock has seen daily swings around ~4 percent. Today the swing was a positive one so I decided to exit the position for now. It’s very likely that I will have the possibility to buy back the shares for a bit cheaper but I’m not convinced I’d do so but it is something to consider.

Recent Buy: Fortum Corporation & Sampo Plc

Maintenance purchase for August consisted of 7 shares of Fortum Corporation and 8 shares of Sampo Plc. I wasn’t really planning to increase my Fortum exposure but lately anonymous buyers have pushed the price up. This might indicate that someone has knowledge of upcoming M&A actions so this minimal increase was justified. As a bonus it also rounded up the total share count to full hundreds which gives me some unexplained mental pleasure. Sampo on the other hand is an easy decision even though the valuation isn’t cheap. It’s partially preparation for switching Nordea for Sampo if they choose to move to Denmark. In addition to these small purchases I decreased portfolio D/E ratio to 0,123 from 0,135 a month ago.

Summary:

  • 7 shares of Fortum Corporation for 14,94 EUR per share
  • 8 shares of Sampo Plc for 44,59 EUR per share

Recent Buy: Fortum Corporation and Sampo Plc

Planned maintenance purchase since Q2 reports caused minor corrections for both Fortum and Sampo. I’m increasing my position in Sampo mainly because I might eventually trim or even eliminate my position in Nordea due to tax reasons. Sampo allows me maintain some of the exposure in that case and in general is exceptionally well managed company. Fortum is in a position to benefit from major trends but has way too much political risk. I most likely will not increase my position on it unless there are significant changes in valuation and/or market situation. In addition to these purchases I trimmed the portfolio debt a little bit and current D/E ratio stands at 0,135 target being 0,1 or less.

Summary:

  • Fortum Corporation 14 shares for 13,98 EUR per share
  • Sampo Plc 4 shares for 45,89 EUR per share