Stocks I Bought and Sold Yesterday
Yesterday
was an active trading day for me. I sold 90 share of the diversified investment
group NYSE Euronext (NYX) at $36.50 and bought 100 shares of Coca Cola (KO).
No further fantasy for NYSE Euronext Shares
I sold NYX
shares because the stock price is around 10% over the takeover price announced
by the IntercontinentalExchange (ICE). I believe that it could be possible that
another exchange could start a second offer and overbid the current price. So
my sell-off was only a part of my full position. With the rest I could benefit
from a higher offer. However, fantasy with the NYX is over. I don’t see any
growth perspectives if the deal passes through. ICE, CME and BOCE are more
interesting now.
My whole NYX
stake was up around 40% and I like to hedge these gains. Now, everything is nearly
safe and my big risk in this position is off.
In addition,
I bought some shares of Coca Cola and increased my stake by a significant
number. KO was the best performing of my core holdings over the recent years but
compared to the other stocks I own, it is still an underperformer.
Cocal Cola is down, but long-term still a buy
KO was down
2.72% yesterday. The earnings results were solid but the market expected more.
I don’t really care about the current price levels and quarter reports. They
change too fast. I am a long-term investor. I bought several times KO shares
and increased my position every time at a higher rate. That’s not a good choice
but if my portfolio grows, I need to increase the total amount of my safe
heaven core holdings.
I love
stocks with very long dividend growth, a trustful managements and solid market positions
in several markets worldwide. KO is definitely not cheap. The EV/EBITDA ratio
is at 14! The yield is still acceptable at 2.72%. I expect that the yield
should climb over 3% with the next dividend hike.
I have several
beverage stocks and they all have a very high valuation. I don’t know why but
in the market is a huge fight about big companies with strong brands and
distribution power.
Companhia de Bebidas Das Americas offers a higher risk
Companhia de Bebidas Das Americas (ABV) is an aggressively buying
company in the brewing industry. They lend huge amounts of debt to buy the
biggest brewers in the world. I don’t like those offensive strategies,
especially when they pay prices at 14x of the EBITDA, but they are somehow successful
and the stock price explode. Coke is not cheap but solid. I believe that it
should be possible to realize a yearly long-term return of 8% or more.
