Dwell+Done

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.

https://seekingalpha.com/news/3302970-general-electric-tumbles-5-percent-downgrades-baml-buyer

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.

See: https://seekingalpha.com/news/3300564-t-filing-natural-disasters-hitting-earnings-directv-now-300k-adds

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

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

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.

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

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.