BHB Portfolio – Weekly Update – 05.06.20
- Portfolio up +4.5% from previous week
- Top of the Class: BNC, AML, TLW, LLOY, BP, RDSB, AV
- Naughty Step: CEY, HGM, SPCE
- Purchases: GSK
- Sales: None
- Dividends: ULVR
Weekly Performance: +4.5%
2020 Performance: +1.1%
Another good week for the B-H-B Portfolio up 4.5% from the previous week making it 6 green weeks in a row and results in the B-H-B Portfolio back into profit for the year!
It has been a monster week for stocks in the Financial Services sector with this element of the portfolio up 20.2%, driven mainly by Lloyds Banking Group Plc (LLOY) up 16% and Banco Santander (BNC) up 16.5%. There is still some way to go for the sector to get back up to previous levels though.
The stocks in the Energy sector also had another decent recovery increasing by 8% with BP Plc (BP) and Royal Dutch Shell Plc (RDSB) both up 16% and 14.8%.
Basic Materials finished up 5.4% however, this could have been a lot higher as some of the Gold Miners had a disappointing week with Highland Gold (HGM) down 17.1% and Centamin (CEY) down 12.2%. Rio Tinto (RIO) and Anglo American (AAL) both finished up 10.1% and 5.2% and are my bigger holdings in this section.
As it has been such a good week in almost all areas, the buying opportunities have been thin with the only purchase being a top up on GlaxoSmithKline (GSK) in the middle of the last trading day.
GlaxoSmithKline plc (GSK) @ £16.30
This is exactly the same purchase as last week at £16.30, where it has been finding some support since early April. £16.30 was also acting as support through the middle of last year. As mentioned last week at £16.30, it is under the fair value and analysts see at least a 10% increase. It is also still paying a 4.7% dividend yield so the margin of safety seems good.
B-H-B Radar & Wish-list
There is not much showing on the Radar now after a positive week across the board, the same stocks as last week are still there or there abouts.
Walgreens Boots Alliance inc. (WBA)
Last week I was hoping for entry points for Walgreens Boots Alliance inc. (WBA) but it finished the week up. It’s not too far away though so a decent drop next week might still bring it in range.
As mentioned last week, the reason I like WBA at a price of $42 or below is because it will be around 20% below fair value and has what looks to be a safe and steady 4.2% dividend yield. It is also in a sector that I think could do well in the long term.
Microsoft Corp. (MSFT)
As mentioned in last weeks update, I have been waiting for the price of MSFT to drop. It is at the top of my wish-list but does not want to drop enough to reach my target price. Next week will require a fairly big drop for it to come into my price range but anything is possible these days!
As mentioned last week $175 is a closer to the fair value price than I am normally willing to pay. However, I feel very positive about the long term future and progress of Microsoft that I’m willing to reduce my buffer.