I’ve made a lot of portfolio changes over the last week or so, I don’t know if I’ve just been lucky but I’ve recently found quite a few investments that are attractive.
Ridley Inc (TSE:RCL)
I have published an article on Seeking Alpha detailing my thesis behind Ridley Inc. As I sold the article to them I cannot post it on here, but I am long Ridley and it makes up 7% of my portfolio. I will say it is a great growth stock selling at a P/E ratio of just 9.
I sold my entire position in Cranswick. In my opinion it is at the top of its fair value range and cash was running low in my portfolio so I sold. I made an 80% profit on this investment, which equates to 33% compound annual return as I have held it since 2011. I’m pleased with its performance and think it will probably do ok in the future but don’t expect the same level of returns.
CF Industries (NYSE:CF)
I sold my entire holding in CF industries after a commentator thankfully pointed out a fault in my analysis. After correcting for it, the downside to the investment wasn’t as protected as I first thought and I wasn’t comfortable with the position. I still think it has a good chance of doing well but I’m not willing to take on the risk.
Novus Energy (TSE:NVS)
Novus has had a takeover offer accepted and the stock jumped 30%. Despite making a big profit in a matter of weeks I’m disappointed in the price its being bought out at, as its far below what I deem is fair value and below other deals made in the region. I’m going to keep an eye on it and probably get in touch with management to explain itself.
Emeco Holdings (ASX:EHL)
A recent long position making up 7% of my portfolio. I’ll be doing a more detailed post on it soon. The idea came from Red Corner, check out his post here.
I am now fully hedged against the US dollar, Canadian dollar and Australian dollar for the first time.
The level of cash in the portfolio is quite low at 8%, I kind of wish I had gone more into cash before the summer while prices were higher. I’m looking to lighten or offload a couple of positions to have more cash on hand but for now the prices of my holdings aren’t attractive enough. I’m particularly keen to lighten Amlin from 11% of portfolio down to a smaller holding given its higher valuation now.
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