Monday, February 2, 2015

Recent acquisitions : ATD.B, GUD, VZ and BNS

I haven't been very active on the trading front those past couples of months. The reason is simple : I think the market is generally overpriced. 

There are a few bargains here and there. But, as you must be aware by now, I don't want to be holding too many companies. I dread diworsification. Therefore, I am extremely picky on initiating new positions. My strategy is too wait for shares of my actual positions to come down, at least 10 %. We are not there yet.

Despite of all this, I have added 4 new companies in my portfolio since the last year.

I bought 30 shares of Alimentation Couche-Tard (ATD.B.) at 29$ in July.

This company does not fit my typical dividend investing profile. It's a small-mid-cap growth company. It pays out a meagre dividend. But the potential is there. Here's a quick overview of the company :

Couche-Tard is a convenience store operator in the United States, Europe and Canada. It operates its convenience store and road transportation fuel retailing chain under several banners. Its network comprised 6,207 convenience stores throughout North America, including 4,698 stores with road transportation fuel dispensing. 

The Company generates income primarily from the sales of tobacco products, grocery items, beverages, fresh food offerings, other retail products and services, road transportation fuel, stationary energy, marine and aviation fuel, lubricants and chemicals.

So I bought 30 shares at 29$, thinking I was probably buying it too high and that I would buy some more later at a lower price. Little did I know. The share has now rocketed to a 50$ price. This is a 40% increase. Wow! Should I have bought more? Yes! But, eh, I"m still happy I got on the wagon.

There are now rumours that Couche-Tard would buy 500 Esso fuel retailing store from Imperial Oil. So I will wait and see how it turns out before making another move to consolidate my holding.

I bought 150 shares of Therapeutic Knights (GUD.to) at 6.33$

Again, this company does not fit my typical dividend investing profile. It's a small pharma company. It doesn't pay a dividend. But the potential is there.

The CEO who runs the company made a lot of money to former shareholders of Laboratoires Paladin. A lot of Cash. He wants to replicate what he did. He has the talent, the assets and the contacts to do so. Now, he needs time to implement his strategy. It's a long shot. So will see. This is a the " Penny Stock " section of my portfolio.

The share is up 22% since I bought it. It's 8.13$

Finally, I bought 25 shares of both Verizon (VZ) and Bank of Nova Scotia (BNS)

These two stocks fit clearly my dividend investing profile. They are a little pricey, but the juicy dividends they are paying make them worth the wait. So I will wait.

For now, both shares have dropped below my acquisition price.

And you, how did your latest acquisition do? What do you think of my latest buys?





No comments:

Post a Comment

Thanks a lot for your comment.