In December 2015 the share prices kept dropping and now in January 2016 even more so. This means to me that contrarian times are here and it is time to go shopping! Unlucky for me, as I have mentioned before, I need to build up my cash buffer as preparation for a potential unemployment period during this year.
I am currently late with plenty of things and then I do not only mean with this report but also from analysis requests due to that I have a terrible cold and have not managed to find the energy to write articles as I would have liked. I am now feeling a bit better and will hopefully get started slowly again.
Last month I increased my positions in my two German banks. As often, when I buy more shares, they keep dropping for a while longer. My German banks was no exception to this rule.
The top ten list (still without fresh analysis!) is now: Balaton, Pharmstandard, ARLP, Sollers, Encana, Fossil, TransContainer, Casino, Tag Immobilien and finally Qualcomm. The top ten list is now strangely enough composed mainly of Russian and American companies. Casino was lately trashed by Muddy Waters "Research" following their strategy which is build up around. 1. Short a company. 2. Publish a report how bad the company is (could be various degrees of truths to it). 3. Collect the earnings when investors run out and sell.
As always the car companies are cheap and I must say that BASF has come down to a very interesting level again which most likely comes from their oil and gas involvement which is hurting them pretty badly at least from what one can see in the quarter reports.
There are plenty of cheap companies also in my own portfolio and I can more or less increase any position that I want since all of them have been dropping to new low levels by the look of it. Some of them I do however not consider worthy of any increase but others I do not mind increasing my position in!
Conclusion: I have some cash on the broker account (around 2.8k €) so it should be possible to make either one big or two smaller investments. The oil industry does not scare me and I have no fear of increasing my holding in for instance BP.
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