Wednesday 3 February 2016

Stocks of Interest: February 2016

Stocks, interest, February, 2016

The shopping period continues and there are many nice companies to pick up at a fair price. Luckily my private safety buffer is already in place and still I got 3k cash that I can do as I please with. I usually try to keep 1k as buffer on the broker account but when the market drops like this, or ideally even more, then I will not sit around and keep that buffer. Additionally my broker have still not increased the trading fee which means that I still find it ok to make only 1k investments.

Last month the two stocks I increased in was K+S and BP. As always the share price kept dropping after I made the investment. Some months that is harder to accept than other months. Right now it is hard. Sometimes my feelings are that come on! Give me a break! Let one of those darn turnarounds actually start to turn. They don't, they just keep slugging out more and more impairment costs. The value that I paid for the company, the value that I thought was there, is in some cases quickly deteriorating. Am I stuck in several value traps? A word that I do not really believe in. Future will tell. Enough with the whining!

For the previous report please visit Stocks of Interest: January 2016.

Stocks, January, 2016, interest

The top ten list and still without the important update which I hope I can stop saying soon: Balaton, Pharmstandard, ARLP, Sollers, Encana, Fossil, TransContainer, Casino, Gilead Sciences and Tag Immobilien. Only difference is that Gilead entered and Qualcomm got kicked out from the top ten. Casino is still pushed down and they are heavy in South America and Brasil and things are currently not so smooth there.

DAX, February, 2016

The cars are still in focus. I must say that I find it amazing that a supplier to the automotive industry such as Continental is trading at a P/E that is more than double the car companies. How can that be?
Besides from that BASF starts to be fairly valued as do RWE. BASF due to part of earnings from oil with their Wintershall and RWE due to nuclear, coal and general utility concerns in Germany so there are, as always, reasons for why they have dropped so much.

My, holdings, February, 2016

Many stocks are cheap (led by the banks and utilities and moving over towards the cars) but the companies that I find slightly more interesting this time around are IBM, Deere, BASF and the two ETFs.

Conclusion: Many companies are down at nice levels (P/E, and P/B) with fully acceptable dividend payments. Those American giants does indeed look interesting to me and we shall see what I will do with my 3k € during February.

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