This is a purchase I’ve been thinking about for quite some time now. NEL ASA reported their 3rd quarter results today and I’m still liking what I’m seeing. I consider this to be a slightly contrarian play on electrification of transportation. EVs are clearly going to be a big thing, there’s no doubt about it, but I still see a clear bull case for hydrogen. With this in mind I initiated a position on NEL ASA with a purchase of 7000 shares for 2,94 NOK per share. It’s a bit odd position for my dividend portfolio but as I’ve said in the past, it will be an ultimate dividend growth stock if and when it starts paying one. That remains to be seen and I’m willing to wait for that to happen.
Nordea dropped today after reporting 3rd quarter results. Valuation was just so compelling that I decided to buy additional 100 shares for 10,50 EUR per share. I don’t expect this to be exceptionally long position as I suspect that Sampo has big plans for Nordea. I wouldn’t be surprised if they complete the relocation to Finland next year, optimise the operations including the IT infrastructure and announce a merger in 2019 which could complete in 2020. They appear to be in excellent shape going forward and the gradually rising interest rates should work in their favour as well.
Well this escalated quickly. I went over the numbers again and made projections for the next six to twelve months and as a consequence decided to eliminate the whole GE position consisting of 230 shares for 22,013 USD per share. There’s a significant risk for an extremely hard reset for the company. For the short term is also allows me to take some tax losses from my original entry position. I’ll keep an eye on the company for a re-entry but don’t expect it to happen until the first half of 2018. Then again my thesis might be completely wrong in which case I’ll try to use the cash to trim down the portfolio debt which I would like to eliminate completely within a year or so.
General Electric is a company on which I’m moderately bullish in the long term. Calling the bottom however is really difficult since the company is very much in restructuring mode for the months to come. None the less I decided to buy additional 100 shares today for 22,50 USD per share. This makes it a full position but should there be a steep decline on possible dividend cut news, I might overweight it for short term. Personally I think that that the dividend cut is pretty much priced in already but who knows. I wouldn’t be surprised if it goes to mid teens at some point but for the long term I see plenty of potential considering the size of the company. Aggressive restructuring might provide significant upside from the current valuation. I’ll consider this to be a contrarian limited risk position in my portfolio.
Coca-Cola is one of those companies you should never sell but that’s what I did. This was a minor position of 38 shares and the valuation has been a bit stretched. I sold mine at 46,33 USD per share. It’s a high quality company but given the valuation and growth potential, my money might be better invested elsewhere. I’m currently monitoring GE and Apple for additional purchases and on the home front Sampo is still looking extremely interesting even though it’s currently my single largest position.
AT&T went down today after reporting that Q3 earnings will be impacted by natural disasters. To me this appears to be a clearly too dramatic market reaction so I bought additional 30 shares for 36,30 USD per share.
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.
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