Category Archives: Recent Sale

Recent Buy and Sale

I normally do not sell the securities that I’ve purchased in my Portfolios as I’m into it for a very long haul and buy them only after careful consideration, unless, there are some exceptional circumstances as below:

  1. A significant drop or total elimination of dividends
  2. A display of inappropriateness by the company, be it management, or otherwise
  3. An apparent fraud or even outright cooking of accounting books

I’d recently purchased Seagate Technology (STX) in Feb of this year and during that time, things looked to be going in right direction. Although, I was not fully convinced about it but thought that such a marquee company will be able to right the ship with the changes. However, in the technology world, even a year or even few months, can be a light year away. I still think STX has good story going for it, but, looking at the accelerating secular trends of drastic price reduction with each newer version of disks, storage and not to speak of cloud storage, I think it is too much risk to hold STX as a long-term duration security.

As a result of this learning experience, I’d add an additional point in above list: Watch for the secular trends in the area where the company operates. Technology is one field where predicting even for a year is a difficult proposition, probably best left to astrologers or talking heads on TVs.

I sold all my 40 positions of STX on 5/04 at $19.81. Now that, I’ve some ammo to fire for few buys 🙂  That’s what I exactly did: I bought below companies.

1) Bank of Nova Scotia (BNS)

I’d recently bought BNS and this was 5th addition to that. I added 10 positions in BNS on 5/09 at $47.62. It’ll add $28.80 of passive dividend income on an annual basis. BNS got the honor of my first buy of 2016. Bank stocks have nicely recovered and started to appear a bit on the expensive side in my opinion.

2) Eaton Corp, plc  (ETN)

Eaton Corp plc is a power management company providing energy-efficient solutions for electrical, hydraulic and mechanical power. The company operates across 4 segments: electrical systems and services, hydraulics, aerospace and vehicle. The company was founded in 1916 and is headquartered in Dublin, Ireland. ETN has a current market cap of $24B.

ETN has dividend yield of 3.75% and trading at $60.87, dropping from 52 week high of $73.82, about 20% drop. I initiated 5 positions in ETN on 5/09 at $61.11 in my taxable account. It will add $11.40 of passive income annually that I do not need to work for.

3) Welltower, Inc. (HCN)

Real Estate Investment Trusts (REITs) have been pulled down due to concerns about Fed raising interest rates and their impact on the earnings of these REITs, though they started rallying in recently months. The yield of 4.79% is simply juicy.

I bought 5 positions in HCN on 5/13 at $71.74. It’ll add $17.20 of passive income on an annual basis.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy and especially sale?

Recent Buy and Sale

I had another buy and also sale in this opening month of January, as compared to last whole year, I just posted one article on sale.  I bought Unilever Plc (UL) and sold iShares Emerging Mkt (DVYE).

I’ve been eyeing this multinational company UL since a while but finally pulled the trigger this month, with the price being in my buying range. Its a hold for long time to come.

1) Unilever Plc (UL)

Unilever plc is a multinational consumer goods company, co-headquartered in Rotterdam, The Netherlands and London, England, dual-listed there, and has Anglo-Dutch origins in Soap and Margarine. Its products are sold across 190 countries, and grouped into 4 categories: Personal Care, Deodorants and oral care products, foods, weight-management products and nutritionally enhanced staples, powders and liquids, soap bars and other cleaning products. Some of the popular brands include Becel, Flora, Bertolli, Heartbrand, Knorr, Lipton, Rama, Blue Band, Brylcream, Sunlight, Surf, Dove, Lux, Rexona, Lifebuoy, Close up, Sunsilk, Vaseline and Ponds.

UL is trading at P/E ratio of 19.50 which is lower than its close competitor, The Proctor & Gamble Company (PG) at 24.70, dividend yield of 3.36% and a Market Cap of $128.59B. It traded at $45.99 at its 52 week high and currently at $42.51, fairly valued in my opinion.

I bought UL at $41.31 on 1/21/14 and initiated 15 positions in this company. It will add $21.45 of passive income on an annual basis that I do not have to earn and work for.

UL was also a recent buy of Dividend Mantra and few other bloggers.

I wrote last month about the criteria when I sale the securities and one of them was significant reduction of dividends. That’s  what happened with DVYE, dividend was slashed mercilessly in this case from $0.76 to $0.05. I do not mind small and temporary reductions in dividends if the fundamentals of the underlying company remains good, however, in this case, it was a hammer blow on dividends.

I sold my 10 positions in DVYE on 1/20 at $41.73 and netting $407.64. These proceeds were used to purchase 15 positions in UL.

Full Disclosure: Long on UL, PG.

Do you think UL is a good buy at these prices? Are you also thinking to add them in your portfolio.

Thanks for reading.

Recent Sale

I normally do not sell the securities that I’ve purchased in my Portfolios as I’m into it for a very long haul and buy them only after careful consideration, unless, there are some exceptional circumstances as below:

  1. A significant drop or total elimination of dividends
  2. A display of inappropriateness by the company, be it management, or otherwise
  3. An apparent fraud or even outright cooking of accounting books

On Nov 23, I’d published a post where I made a bold move to buy additional 100 positions in American Realty Capital Properties, Inc. (ARCP) and I’d felt at that time that the management would be able to sort out all issues soon and it will be a great comeback story. However, things took a turn for worse for the company with the departure of top management including CEO, CFO and COO. If loss of one senior executive is not bad enough to indicate troubles within a company, loss of top layer executives was a hammer blow in my opinion in any aspects of running a company smoothly. In order to right this ship, it could take a long time to fix the accounting issues, settle lawsuits and other potential undiscovered issues, longer than I can wait for 😉

Initially, I thought of selling all my 175 positions, however, I finally settled to sell 100 positions and kept remaining 75 positions until further scrutiny. If the hoped for turn-around does start to appear on the near horizon, it will reward me handsomely and if there are appearances of further deterioration in the health of this company, I may completely exit my remaining 75 positions.

I sold 100 positions at $8.08 on Dec 17 and this reduces my dividends by $100.00 for next year. I’ll be looking to buy other high quality securities to add to my total passive income. The seriousness of this sale can be gauged from the fact that this is my only single post on sale for this year of 2014.

What do you think about my sale ? Did you sell all or kept some positions for potential turn-around?

Full Disclosure: Holds remaining 75 positions in ARCP.

Thanks for reading.