First November for the Long Haul Portfolio, three more operations have been carried over all of them on the buy side. I have already pinpointed the stocks that I want to sell, will wait for the right moment to do so, but the target is to reduce the number of equities, and work more on concentrating efforts on more “core” holdings. PF target allocation of a 40-40-20 breakdown between the three currencies composing it (USD-GBP-EUR) is “almost” there and I have 2 more stocks on my radar to complete deployment of the GBP capital (namely WPP and PSON, but both are not at the right price yet).
Who I though it was at the “right price” was BLT (BHP Billiton), the world leader in raw materials production. Sadly I was mistaken, but this is the issue when buying using a set of rules. In this case the stock was over the -20% mark for the “second top-up”, at 900 GBP. Went in and then there was that massive incident in Brasil, where BLT is involved for 50% of the mine, and commodities are sinking even lower, so in the space of a few weeks I can see the stock floating at -20% again. Will not add anymore, or if I want exposure to the Materials segment I will do so buying BASF instead.
Another top-up was NRZ, New Residential Investment Corp. Now this is a tricky one, and it goes a bit against my rule of “invest in what I can explain to a kid” rule, so I will not try to explain it here because most certainly I will end up writing something wrong. What I know from my studies on how the mREIT work, is that NRZ is not involved in the standard mREIT business practice, where companies own mortgages on properties (hence they are very sensible to interest rate increases). NRZ is more of a financial institution that gives financial services to the companies that service mortgages. Check out a better explanation: HERE. To make a long story short, increase in rates will result in an increase in profits for NRZ. The company is listed as an mREIT, but it’s not, but so far suffered from a quite unwarranted selloff, making it attractive for me to buy into, as they passed the -10% mark after starting the position. Got them at 11.90 USD. Now the best part: 15% dividend! Because of the low valuation dividend has risen a lot, it seems that the “correct” one would be around 9%, but the selloff helped a lot there. NRZ has been rising dividend twice this year and third quarters results were positive.
Last spot goes to Atlantia, an Italian company that works in the Industrial services sector, they are engaged in a series of engineering related works (highways, airports and infrastructures). In Italy they are the sole company engaged in maintenance of the highway network, and, like Carillion and Interserve, they also operate in foreign countries. I consider highway bit quite important as place them in a sort of monopoly play. I got in at 24.50, which is an high value (I was targeting 22), but in doing so on the 20th of November I got the dividend on the 23rd, plus I wanted to start a position with them and I have decided not to wait any longer.
Generally speaking as markets have been doing quite well it’s difficult to operate now, but I am not complaining, I like to see some securities in the “green” for a change, plus I have almost finished all the capital that I had to invest, so from now the number of trades will diminish substantially (this is also because the commission bonuses that I had have also expired) .
How was your activity in November? Many trades?
LONG: NRZ, BIT:ATL, LON:BLT, LON:CLLN, LON:IRV