An Easter Sunday Update.

 

Hi all, 

Hopefully, you are all having a good Easter Bank Holiday Break. I just thought that I would provide a brief update on where my positions currently stand. 

Since I first posted my previously executed trades posted a few weeks ago, there has been a significant change in my positions. 

The Walt Disney Company: 

This position has now been closed! I cashed this one out the day after Disney announced their streaming service pricing and the share price rocketed. Overall, I exited this position up around 16% (or 48% when accounting for leverage). 

Aviva:

I remain involved in this position, and the share price currently sits at 432 pence per share - representing a 2% increase in the share price since I opened the position. 

The Coca-Cola Company: 

The share price currently trades at $47.68, and this represents an upside of 4.3% or 12.9% with leverage. Another very tidy profit thus far and the expected dividends are coming soon too!

Morgan Stanley: 

Another position here which has hit a take profit position. Shares of Morgan Stanley climbed after they beat their earnings estimates and this meant that the share price has promptly climbed to $47.55 a share. In this case, I got out of the trade too early as I closed at $43.6 a share. 

New Additions to the Portfolio: 

To try and increase the rate of return of my portfolio, I have begun hunting for stocks which I consider to be highly risky but potentially highly lucrative investments. 

Deutsche Bank: 

As we all know, Deutsche Bank is in big trouble. It seems to hop from scandal to scandal and fine to fine. Consequently, the share price is suppressed deeply, and the current price to book valuation of Deutsche Bank is 0.25. Thus, I have decided to take a punt on Deutsche with a small investment. 

I purchased Deutsche at 7.73 a share, and it currently trades at 7.78 a share. 

Essentially, with Deutsche Bank, I will either see a fourfold increase in the value of my investment over the next couple of years or the company will collapse. Naturally, given the riskiness of the investment, I have decided not to use any leverage whatsoever. 

Genworth Financial: 

This was another low price to book company trading with a P/B of 0.2. This is one of the lowest book values on the S&P500. The company essentially provides insurance type services, and there is currently the possibility of an acquisition. 

Another punt here but I bought at $3.75 a share, and the price is currently $3.72. 

Again, we could potentially see a fivefold increase in the share price, or alternatively, we could see bankruptcy. Regardless, I think this one is worth a punt as the actual financials of the company look relatively secure. Albeit, there is a large portion of debt maturing within the next few years. 

CVS: 

I have been interested in the medical sector for a while and have decided to invest in CVS because the recent depreciation in the share price means that at the lows the shares had lost around 60% of their maximum value. 

The recent downturn has been caused by a large portion of the debt which has been acquired as a result of the acquisition of Aetna - an insurance company. Once again, this stock has seen a large downturn in the share price, and I do not believe it to be justified. For example, poor guidance from the Walgreen Boots alliance led to a suppression of CVS share price by association. The underlying fundamentals of the company remain incredibly strong. I purchased at $52 a share, and currently, we trade at $52.62 a share. In my forecasts, I am currently expecting the share price to regain approximately 40% of its value over the next year as a result of the beginning of the performance of the Aetna acquisition. This is in line with the analyst's general price target of $72 a share. 

Invesco: 

This is the final addition to my portfolio in recent weeks, and there are two reasons why I've purchased this stock. Firstly, it has strong underlying fundamentals, and the balance sheet is strong - there has also been a sell-off of the stock in recent months, and it did not recover as well as other stocks did after the downturn at the end of 2018. 

Secondly, dividend yield, dividend yield, dividend yield. 5.57% at the time of writing. For a company of this magnitude, that is insane, and I jumped at the opportunity to invest in a sound company with strong dividend growth and yield. I purchased at $20.89 a share, and we currently trade at $21.50 a share. 

Ok so thanks for reading folks. Have a good Easter and enjoy the rest of the long weekend.