Thursday, 24 November 2016

45. Stock screening #7 HAL

That’s it! As already prepared for in an earlier post called Sale!
Just as the Oil and Gas world seems to have recovere… Well, I should probably put some more drama in this. At the moment the very first dust particles seem to settle down. After the last tunes of the heavy bombastic orchestra have faded and the hero of our story has been left for dead. Well, it may be that’s too much but I figured a respectable pillar of global economics deserved a some extra words to describe it recovering from a nasty smack-on-the-forehead.

Back to my story; Just as it makes the very first move to sit upright and glaze at the spinning stars around it’s head (I’ll cut the Looney Tunes stuff short). Well, right at that moment: I sold it.

Not entirely sure whether we’re living in a bubble seeing that markets go up, but besides that: Halliburton does not really fit in my portfolio with only a 18ct’s of dividends per share. Making a quick calculation for myself: Dividend yield is the factor to use here. Now we want to have this number through the roof, (theoretically, I know: High yield shares are usually High Risk shares).

But for Halliburton this number is (much like a few others in my portfolio, I’ll get to them later) all but covered with rainbows. This is particularly interesting since the share price has taken a rollercoaster ride being swung to a full 40USD per share difference over approximate 1 year!

The yield being total dividend per year divided by share price, I want to see what the large difference in share price has meant for the yield.

So, the amount of payments per year: 4
Dividend per share; 0.18 USD
Give a total of 0.72 USD a share per year.

Now, let’s compare this with HAL’s volatility of the past few years;

Share price:
Yield:
30
2,40%
40
1,80%
50
1,44%
60
1,20%
70
1,03%

Where the shares price is currently climbing again, the yield will drop even further (having heard no signs of increase of dividends). Hence, my wish to get rid of the share. A quick summary of nett profit for my portfolio of this trade:

ticker
name
date
Purchase
purchase rate USD
date sell
sell USD
difference USD
Difference in %
HAL
Halliburton
17-03-2015
816
25-11-2016
988
172
21%

Having shared this, I wish you again an awesome day!

Kind regards


DLH

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