Just another averaging down operation on NYSE:BBL. On February 4th I sold 130 shares for 21,01 USD per share and on February 8th bought back 140 shares for 20,42 USD per share.
Investments
Recent Buy: Nordea Bank AB
Slightly unplanned action since “official” January purchase was already made and Nordea wasn’t really on my short term watch list. It has been hammered so down lately that I didn’t see any problems in adding to my position. Today I bought additional 110 shares for 9,07 EUR per share. Typically we would see a dividend rally during Q1 but in the current market environment it’s difficult to know what happens next. Technically I don’t even care.
Recent Buy: Telenor
Balancing of the portfolio with a purchase of additional 60 shares of Telenor for 137,50 NOK per share. This action was executed on January 14th and was the first buy of the year. NYSE:GE would require similar addition during February but the market turbulence is starting to look so promising that a better valuation might lay ahead. Meanwhile few other existing positions are starting to look really tempting, especially NYSE:OHI is really difficult to pass on.
Recent Buy: Deere & Company
This is most likely the last trade for FY2015. I decided to skip on GE and Telenor and instead slightly increased my position on Deere today by purchasing 13 shares for 77,35 USD per share. There’s nothing special behind this action but I skipped GE because of the valuation. I’m hoping to add on it in the 28-29 range. Telenor however is on my buy range at the moment which makes it the strongest candidate for January purchase unless GE drops to the mentioned range.
Recent Sell & Buy: BHP Billiton Plc
Nothing new here, just a minor strategic operation with NYSE:BBL. As it became evident that basically all miners would be taking extra beating, I decided to sell my 110 shares on December 7th for 23,2401 USD per share. The following day I bought back 130 shares for 21,68 USD per share. As a bonus I recorded some losses to be used later for tax deductions.
Long term fundamentals haven’t really changed but the current situation is challenging. There could be a dividend cut in the cards but personally I wouldn’t event mind having one. Current situation in the overall market provides excellent possibilities for strategic moves by such a big player.
Recent Buy: BHP Billiton Plc
I’ve been waiting to add on various cyclical companies but BHP Billiton has been taking extra beating lately due to various problems. Latest one was the collapsing of a dam in Brazil in a mine co-operated with NYSE:VALE. It’s tragic but also hopefully a one time indecent that has very little to do with the company itself. Sure there are risks involved with this purchase. Cleaning up this mess can cost anything from tens of millions to hundred millions dollars. On top of that there’s the overall economic situation which alone is a real risk for the dividend. Then again the long term fundamentals haven’t really changed. Having said that, today I bough additional 50 shares for 26,93 USD per share which brings my total up to 110 shares.
Additional information: http://seekingalpha.com/article/3665126-bhp-vale-samarco-dam-failures
Recent Buy: VEREIT, Inc
As anticipated, balancing positions continued with NYSE:VER (formerly NYSE:ARCP). Troubled company in transition process and my only truly speculative position. On November 6th I bought additional 130 shares for 8.18 USD per share. I still doubt that I would build a full position on VEREIT but the jury is still out on that one. Interest rate issues will play a significant part here but I ended up with a target value in the neighbourhood of 9.90-10.10 USD per share. That’s just a side note though as my primary focus is on the dividends.
One view on the matter: http://seekingalpha.com/article/3657246-net-lease-reit-vereit-continues-to-execute-on-investor-day-blueprint
Recent Buy: Telenor ASA
Balancing act for the portfolio as this transaction wasn’t motivated by timing. Yesterday I bought additional 65 shares of Telenor ASA for 164,50 NOK per share. Since I’ve gone a bit overweight on some assets, there’s a bit catching on to do. In the following months I should balance my position on General Electric, Coca-Cola and Vereit. Vereit is a tough one as the company has a bit problematic past which hardly justifies a full position. Then again it’s the only fully speculative position on the portfolio and in that sense fits to my current strategy. I’ll most likely build a half position on it.
I’ve also build a 10% position with external liabilities. These positions are also covered by my emergency fund which I’ve been building up lately. I would like to continue doing so for couple of months so it will be a bit problematic to come up with additional free cash for next month’s transaction. I might even skip that since this month has had plenty of extra action. It remains to be seen.
Telenor Investors Site: http://www.telenor.com/investors/
Recent Buy: Omega Healthcare Investors, Inc.
Yet another addition to an existing position on Omega Healthcare Investors (NYSE:OHI) as I bought additional 40 shares for 35,78 USD per share. Lately I have also updated the strategy to allow external liabilities up to 10% of the portfolio value. Such liabilities can pump up the ROE as I would be paying an interest rate of 0.99% for it. Comparing that to a dividend yield above 6% in case of NYSE:OHI makes it a no brainer as long as the involved risks are understood. Then there are the tax benefits on top of that.
Corporate profile: http://www.omegahealthcare.com/corporateprofile.aspx?iid=103065
Recent Buy: TeliaSonera AB
Safe, stable and boring? Things change quickly as TeliaSonera (HEL:TLS1V) has been accused of operating in not so legal or moral grounds. Muddy Waters Research issued the following open letter to the board of TeliaSonera: http://d.muddywatersresearch.com/wp-content/uploads/2015/10/MW_TLSN_OpenLetter_10152015.pdf. Later the company responded with the following statement: http://www.teliasonera.com/en/newsroom/press-releases/2015/10/teliasonera-comments-on-open-letter-to-the-board.
This led me to take a boring gamble as today I bought additional 250 shares for 4,38 EUR per share. Personally I don’t mind grapping falling knives since catching the opposite kind of knives would require me to position myself in uncomfortable heights.