Friday 21 November 2014

Extra stock bought November 2014: Kernel

Kernel, a Ukrainian agriculture and logistics company

There is still no clear end to the trouble between Russia and Ukraine but happily at least the gas is flowing so that people will not have to freeze this winter.

The share price of Kernel is every now and then taking another nosedive and the volumes traded are low so the real price is difficult to say. As I mentioned in my Stocks of Interest: November 2014 report I found there to be two stocks of interest for me to invest in and one of those, Fugro, I have already increased in so for the extra stock I decided to buy Kernel.

This time I bought 180 shares for 1062.34 € which gave me a share price of 5.90 € including the fees. I now own 550 shares in Kernel with the average price, including fees of 8.52 € per share which means I managed to push down my price per share with almost 1.30 € per share.

Diluting my share price down as I now once again did will not make my investment become positive and one should use this kind of strategy very carefully. I have failed in the past with this strategy. As an example with Asian Bamboo and back then I bought more due to a stupid mechanical rule of buying when the share price dropped by -X%. Such rules should never be used. Please always take a look at the company.

Is the company still kind of healthy and doing well? Then additional investing is ok.
Is the company loosing money and are making idiotic changes? Then do not invest and even consider to sell directly!

To get a better feeling for what and how Kernel is doing please see analysis of Kernel 2014 and  if you want to take a look at my current Stock Portfolio then please click on that link. The portfolio will however not be fully updated until the end of the month.

No comments: