Telenor dropped below my average price before reporting quarterly results. As I didn’t anticipate any significant changes going forward, I decided to buy additional 80 shares for 133,40 NOK per share. My position in telecom sector is mainly based on the assumption that the sector will continue to grow due to IoT, connected cars and other similar drivers and on rather bold assumption that regulation will effectively block disruptive competition. I also believe that eventually there will be some consolidation taking place but in reality I can not predict the companies involved in such action.
It remains to be seen if my short term thesis was correct. Eventually the results can be found from here: http://www.telenor.com/investors/reports/2016/telenor-groups-results-for-the-3rd-quarter-2016/
This is a company I’ve had my eye on since last July. It dropped heavily after negative Q2 report but there was something strange about those results and communication in general. One possible reason could very well be the management stock options as described in detail here (only in Finnish though): http://nallensijoitusblogi.blogspot.fi/2016/07/Betssonoptio-ohjelmaostopaikka.html. I don’t know if that’s really the case. If it is, it could be considered to be illegal or at least less than ethical but for a risky vice stock position I don’t mind positioning myself right between illegal and unethical. It does however present a very strong incentive for the management to work on the stock price going forward. This is the main motivation for a purchase of 230 shares for 88 SEK per share. I’ve been also looking for a secondary SEK position and increase in vice holdings so this fits for that as well.