Sunday, 11 October 2015

Extra stock bought October 2015: K+S


K+S, a German mining company

Well, well, well... in the end PotashCorp (analysis of PotashCorp) decided to pull back their offer and the share price for K+S dropped like a stone. I was hoping for a hostile takeover so that I would be able to sell off my shares at a fair price but instead I ended up buying more.
I find it highly fascinating that the market that has been informed from the biggest competitor of K+S that the value of the company is at least 41 € per share decides that the share price of around 25 € is more reasonable. Is the competitor working since years in the business wrong or is the market wrong? I obviously consider the market to be wrong and I increased my holding on the silly drop. As I reported in K+S report Q2 2015 they are already up at 1.66 € EPS and they pay out 40-50% of their earnings in dividends so I expect a good dividend payment for 2015.

My cash was running low so I could unfortunately only buy 43 shares at the cost of 1,070.86 € or 24.90 € per share including fees. This now gives me a total of 195 shares at a cost of 4,166 € which gives me 21.36 € per share including the fees. I have now spent all the cash that was generated from the sale of MüRe (stock sold September 2015: MüRe).

To find out more regarding K+S then please visit analysis of K+S 2015.

If you want to see my current Stock Portfolio then click on the link but the portfolio will not be fully updated until the end of the month.

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