As the beginning of 2017 approaches majority of the people start summarizing the notable events that are important to them. For example there are dozens of rankings about movies, surprising sport events and famous people. The financial professionals select the top stories of this year from the global investment universe and traders calculate their individual performance hoping for nice bonus levels.
Similar to these in this post I collected the realized outcomes and the currently unrealized values of my recent trade ideas. Thanks to the conservative investment policy I follow all of the initiated positions resulted in a profit. On the other hand the 1-2% holding period returns were often due to the strict stop loss limits. The biggest gain was generated by the Pernod Ricard position (16% over the holding period, 73% in annualized terms).
Additionally the currently unrealized Aegon shares in the portfolio are performing really nicely as well.
The highlighted holding period returns are not annualized and are generated from long positions in the equities and do not contain dividend returns received over the holding period. All return values are before fees and taxes.
On 30 December 2016 the long position in Tractor Supply Company has been closed at USD 75.41. The realized profit before any taxes and fees is 10.1% (not annualized).
On 21 December 2016 the Engie position has been closed at EUR 12.26. The realized profit before any fees and taxes is 3% over the holding period between 10 Nov and 21 Dec. Not easy to hold a stock above your breakeven price limit for years in order to get the dividends:)
On 12 November 2016 Amgen position (previous post) has been stopped out at USD 146.09. The realized profit is 4.65% before any taxes and fees.
The opportunity of opening a long position in Engie at 5y historic low price levels has been utilized on 10 November 2016. The purchase price of EUR 11.9 can be derived into a really significant dividend yield (~8%).
In line with its previously announced strategic targets the conglomerate will focus on the following main pillars in the future:
(1) activities with low CO2 emission (already made some steps to be a top global renewable generator)
(2) shifting the focus to contracted, regulated business; consequently limiting the exposure to the volatile commodity prices
(3) integrated customer solutions
These are really ambitious plans to provide a proper answer in connection with the collapsed comodity prices and to transform the 200y old energy group into a solid player of the new energy era. Majority of the analysts covering Engie’s business activites provided positive opinion on the future outlook of the company. Even in short-term we might realize some upside (taking into account the oversold measures and the high dividend yield).
On 9 November the AT&T position has been stopped out at USD 36.8. The realized return before any taxes and fees is 1.24%.
3-year share price development of Amgen (USD)
On 2 November 2016 long position opened in Amgen at USD 139.6. Main underlying characteristics of the investment decision:
- recent share price drop pushed the stock price into oversold territory, but majority of the brokerage firms has buy or hold recommendation
- key global leading biotech player
- as an important result of its ongoing restructuring plan, in the future increase in margin is expected