German inside trading: December 2013

December has now finished and it is high time to take a look at what the managers and other key figures in the companies have been up to. The list below contains all the companies that had activities in terms of buying and selling.

Activities December 2013:

Happy New Year

Happy new year everyone! I wish you all the best for the coming year both investment wise as well as for you privately!

For the last ten years or so I have not bought any fireworks for New Years Eve. As a kid I loved it and I must admit that I bought a lot and I did indeed have a lot of fun with it. Today I look upon it as one of the purest forms of money waste. You light it, if your lucky it goes off and blows up like it should. All in all it takes maybe 15 seconds from lighting it to that it blows up. Those 15 seconds of excitement can cost anything from one euro up to easily 50 euros and more. Calculate the hour rate on it and I am sure that you will not buy a single firework again.

I can honestly say that I will never ever buy fireworks again and I also think one can kind of look at the financial situation of a country by observing how much fireworks have been bought. Everyone knows how useless it is and yet when people are financially well off they just have to have one to fire.

Did you buy much/any fireworks this time?

Personalized Index Fund C: December 2013

The Personalized Index Fund C or PIF C was created by looking at four things. The P/E, the P/B, the dividend payment and ROE. So the lowest none negative P/E gave value 1 and the highest P/E alternatively the most negative gave value 30. The same was done with P/B, dividend and ROE. By adding the score together I ended up with a list of DAX companies where the lower the total score the better the company was. This "fund" was also started back on the 16.04.2013 just like PIF A and PIF B but I only look at the changes occurring with share prices and have not "bought" fake shares according to a specific sum of money like in PIF A. I then took the ten best company and pretended that I bought them.

The cheapest with added ROE parameter were:

DAIMLER
E.ON SE
MÜNCH. RÜCK
VOLKSWAGEN
ALLIANZ
DT BÖRSE
BMW
K+S
CONTINENTAL
LANXESS

The difference from PIF B is only three companies and as can be seen in the graph above the development has been pretty ok and it has developed (19%)almost as good as DAX being up 21%. It will be very interesting to see how this fund will develop over time.

Analysis of ProSiebenSat.1 Media

Company: ProSiebenSat.1 Media

Business: A German media company with the core business of commercial sales on their TV stations. They are divided into three segments: Broadcasting German Speaking (four TV channels: SAT.1, ProSieben, kabel eins, and sixx), Content Production & Global Sales (international program production and distribution) and finally Digital & Adjacent (Online Video, Online Games, Ventures & Commerce and Music).

Active: Main activity areas are Germany, Austria and Switzerland but are present in 12 countries world wide and try to establish themselves more in English speaking areas with especially their online activities and content production.

P/E: 26.6

Personalized Index Fund B: December 2013

The Personalized Index Fund B or PIF B was created by looking at three things. The P/E, the P/B and the dividend payment. So the lowest none negative P/E gave value 1 and the highest P/E alternatively the most negative gave value 30. The same was done with P/B and with dividend. By adding the score together I ended up with a list of DAX companies where the lower the total score the cheaper the company was. This "fund" was also started back on the 16.04.2013 just like PIF A but I only look at the changes occurring with share prices and have not "bought" fake shares according to a specific sum of money like in PIF A. I then took the ten cheapest company and pretended that I bought them.

The cheapest companies were:

DAIMLER
E.ON SE
MÜNCH. RÜCK
VOLKSWAGEN
ALLIANZ
RWE
BMW
K+S
DT. POST
LUFTHANSA

As can be seen in the graph above the development has not been very good and it has developed even worse than PIF A since it is only up 13% vs. DAX being up 21%. Theoretically these companies should to better in hard times... are hard times coming? I do not really think so which means that it will indeed take some time until it will perform better than DAX if it ever will.