Lately I have started to read about fundamental analysis, and how that is performed. The reason is that I want to learn this way to trade, since I now understand that I don’t have that much time to trade a lot. Now I would rather learn to find stocks that is undervalued, pay good dividends combinend with some stocks traded from a Technical analysis point of view. From my trading platform, SaxoTrader from Saxo Bank, I can subscribe on a feature that screens for stocks based on fundamental data, and on these stocks look at the financial data. I find it very interesting if I can build a portfolio based on stocks that are either giving me good dividends that I can reinvest in the same stock or other dividend payable stocks. Then my goal then is that I can get such an amount periodically that I can reduce my additions from my own salary or use it as an additional such that my trading capital increases a lot faster, than it does for the moment.
So what am I exactly doing right now? Well I a read a lot on how to understand the different documents that are created for each quartal/year for each company. So I can understand what the numbers mean, and how they relate to each other. And also get a better understanding of what the different financial ratios really means, and see their strengths and weaknesses. I have just learned some basics about free cash flow, how to compute it from the cash flow statement. I do see that there is a lot of reading ahead of me, and also that I have to do some report readings and try to fill the numbers in an excel sheet and see what it gets. I do get a lot of these numbers from my trading platform, but I like to understand what it really is, then I feel more comfortable to use it. That’s the way I am…
So in, hopefully, near future I would give a list on my homepage of stocks that I think would be good picks for dividend or has a good growth potential, as an addition to stocks from Technical Analysis, which are only listed now.
Well that’s for now. I will continue to update when I learn more, and I will also write some about my strategy when it comes to find good dividend paying stocks or growth potential stocks. Give some reasons why I choose to use those ratios/parameters in my screen.
Long time since last post. Well I have been busy, and didn’t found time to update the blog. Now it is a status update. I have sold my holdings in Norwegian Air Shuttle, NAS.OL. A small gain, but the reason was that I wanted to invest more in dividend yield – stocks. I took the money from the NAS.Ol and invested it in Prosafe, PRS.OL. I increased my holdings in this stock, since it has been crushed after Q2, 2014 presentation. They also informed about a new dividend payment in september 2014. Their yield is now at todays pricing on 9.6% per year. That’s quite good. They are paying dividends 4 times a year. I am changing my strategy now in investing in high dividend yield stocks. I am working on a strategy that might suit me more, since I see that I don’t have the time for day trading, and I see that studying the fundamentals in stocks seems very interesting. I will if I find good trading stocks invest in this, but most of my holding will be in dividend stocks. See later for my strategy, and follow on my website for a watch list over potential high dividend yield stocks that is undervalued.
Bye for now.
Today I had an update of my portfolio. My position in Regis Resources NL(RRL.AX) got stopped out on a trailing stop loss that I had set. I got sold out on a 8% profit. That’s ok, but I hoped for some more, the stock had a drop before it went upwards today, and that stopped me out. But, my goal is to have my trades in profit, and that was happening this time too.
After this, I invested the money from the last trade in Prosafe (PRS.OL). From their website, http://www.prosafe.com, one can read the following:
“Prosafe is the world’s leading owner and operator of semi-submersible accommodation vessels. The company operates globally and employed 610 people at year-end. Operating profit for the year 2013 reached USD 245.1 million and net profit was USD 199.1 million.” It is a company that I would hold for both dividends and that I think this company has growing potential. The company pays quarterly dividends, and the dividend yield is on 6.25%, and that’s not bad in my eyes.
At now my portfolio has a clear overweight in dividend stocks. I would see if I should adjust this in the future, but for now, I do feel most comfort in this setting, and I will try to tune my screening parameters and do some paper trading to see if I can resolve a strategy that can let me take more positions for trading in shorter perspective.
After a 3 week summer break, I am back and ready for this blog and for trading. In todays blog I will give an status update on my portfolio. To be honest, the portfolio value has sunk since last update, but I won’t change it for the moment: The update is pr. 06.08.2014 for all, but the Regis Resource NL (RRL.AX, which is updated from 07.08.2014):
– Funcom(FUNCOM.OL) -19%
– Fred Olsen Energy (FOE.OL) -24%
– Gjensidige Forsikring (GJF.OL) + 4,14%
– Norwegian Air Shuttle (NAS.OL) – 5,54%
– Ocean Yield (OCY.OL) +4,30%
– Regis Resources NL (RRL.AX) +5,44%
As one can see, some are in great minus and some in small plus. But Fred Olsen Energy, Gjensidige and Ocean Yield is companies that I would have for a while to collect dividends, so I don’t stress if some of these are in minus. For Funcom, I am waiting for release of their new Lego game and see how the stock price will evolve. The price is low and has very great potential, and the minus can get plus in one day. Otherwise I am a bit worried for Norwegian Air Shuttle. I hope this would change in direction, since my entrance was after a great fall in stock price.
I would give a new update on my portfolio in the beginning of September.
For my next posts I would like to talk about dividend stocks and how I will and has been including that in my portfolio.
At 18 th july the portfolio got increased with a position in Norwegian, NAS.OL. It is a big low cost airline, that has had bad Q2 reports, but they have good prospects after heavy investing in long-distance air planes that had some starting problems and had some financial impact. The future outlook is very good, and I expect easily a 20-30% increase in the near future when the stock rebounds to “normal” territory.
My portfolio can be seen on: http://almaasconsulting.net/TraderIdeas/
I have invested in Gjensidige Forsikring ASA, GJF.OL. A norwegian bank and insurance company. They are paying high dividends, and has the following on their home page:
New dividend policy from and including the accounting year 2014
Gjensidige targets high and stable dividend payouts to its shareholders.
The Board targets a payout ratio over time of at least 70 per cent of profit after tax. When determining the size of the dividend, the expected future capital need will be taken into account.
Over time, Gjensidige will also pay out excess capital above the targeted capitalisation.
I find this promising and will build a certain amount of stocks for this company.
Check: TraderIdeas for my current portfolio.
I would like to inform that I have launched a new web-site:
This page shows all my trades, current positions, a watch list from stock screening and youtube movies about trading. It is just the beginning. I would in the future add more about where to find resources, trading strategies, money management etc.
Try the page and give me a feedback if there is something that is missing or other things you feel should have been there.