Tuesday, 6 December 2016

55. Portfolio update #4 Another success!

At the start of this 49th week of the year a few interesting things happened in my account. A reasonable position was closed with a positive result and another was opened, speculating on a raise in share price and pay out of reasonable dividends.

Arcelor Mittal has enjoyed a fair stroll in upward direction the past period. The share price traveled from just below 4 EURO’s a year ago to 7 EURO’s yesterday. Quick calculators make a 75% return on this one! Off course reality is that I already had a number of stocks making the calculation a little bit less bright:

Total price
Purchase ArcelorMittal
Purchase ArcelorMittal

Lumpsum purchase price for this Package:

Total price
Sales ArcelorMittal

total result absolute

Total result as % of investment

What we see from this table, is that the load in of additional shares in December 2015 was the right decision. I love it when a plan comes together (or is that quote already registered?).
A performance of 11% is reasonable so I’m a happy fellow. Arcelor did not really live up to my expectations of dividends, which is why I put it out for sale. The only thing is, probably in the long term this was a really bad decision (as always this is my first thought when an item gets sold). The metal industry (not talking about music this time) is one with quite straight forward cyclic characteristics. Mark my words, within 5 years this share will hit 40 EURO per share. Resulting in a potential price difference of 900% should I have kept all of my shares now.

The new position in the portfolio is as already announced in yesterday’s Cash-or-Trash: as of yesterday I hold 50 shares of HCP Inc. Anticipating a blooming business in nursery homes and medical institute housing. Now, I only have to await the first dividend harvest from this company. My hopes, expectations and mood are up for this one!

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