BHB Portfolio – Weekly Update – 12.06.20

  • Portfolio down -3.8% from previous week
  • Top of the Class: CNA, GPP, PAF, TLW
  • Naughty Step: BNC, BARC, BP, GVC, HSBA, LLOY, RDSB, VOD
  • Purchases: TSCO, GSK, NCC*, APF*
  • Sales: None
  • Dividends: HGM, SWKS

Weekly Summary

Weekly Performance: -3.8%
2020 Performance: -3.2%

This was the worst week since the March crash for the B-H-B Portfolio however, although -3.8% in a week is not good, it could have been a lot worse.

The Financial Services stocks received the biggest hit with -10.4% overall followed by the Energy stocks -5.7%. The Basic Materials elements finished up 2.0% overall thanks to the Gold Miners and the untouchable Tech sector finished up green too +1.4%.

I did manage to take advantage of the drop and made a few purchases. I managed to increase my positions in two of my current holdings and also opened positions in two new stocks.

The portfolio also received two dividend payments this week.
Skyworks Solutions (SWKS) paid 0.44c per share which follows it’s previous patterns and standards at around a 1.4% yield. It will be interesting to see what the dividend payment will be in Q3 which is when they usually increase.
The second dividend received was from Highland Gold (HGM) which was 3.5p per a share. HGM have recently moved to quarterly dividends from bi-annual and this payment puts them at a dividend increase of 17.2% on previous years.

Purchases

Tesco plc (TSCO)

Buy Price: £2.22
Fair Value Calculation: £2.44
Analysts Estimates: £2.90
Dividend Yield: 3.96%

Another top up of the Tesco PLC position at £2.22. As you will notice from previous weekly updates I have been gradually building this position as it returns to this support zone.

GlaxoSmithKline Plc (GSK)

Buy Price: £16.21 & £16.08
Fair Value: £23.05
Analysts Estimates: £17.84
Dividend Yield: 4.7%

GSK is also a position that I have been gradually building at this support level, trying to build the position slowly to reduce risk and take advantage of drops.

NCC Group (NCC)

Buy Price: £1.48
Fair Value: £1.63
Analysts Estimates: £1.90
Dividend Yield: 3.4%

NNC Group (NCC) is a new position opened. The financials look good along with the valuations. I’ve always like the tech sector but even more so recently. The US tech stocks are untouchable at the moment but they do make me a little bit nervous at the current valuations. So this stock ticks a lot of boxes for me, and the dividend yield is good and looks relatively safe and steady.

Anglo Pacific Group (APF)

Buy Price: £1.39
Fair Value: £1.52
Analysts Estimates: £2.05
Dividend Yield: 5%

Another new position opened, this time for Anglo Pacific Group (APF). The Basic Materials sector of the B-H-B Portfolio is an area I have wanted to expand on. I have read a lot of articles recently that see a strong few years ahead for this sector. APF have been growing nicely over the years and the financial look good for a small cap. The price at the moment seems good for the risk and they are paying a high yield at the moment although stability and consistency still needs proving.

B-H-B Radar & Wish-list

Walgreens Boots Alliance inc. (WBA

This has been on the radar for a few weeks now and the price has been creeping into the price range I was willing to pay. I have held off taking a position as I haven’t been able to understand why the technical analysis doesn’t match up with the fundamental analysis. The Fundamentals look OK and progressing as I would expect for a Large Cap in this sector. The technical analysis is showing a steady decline since it’s highs in 2015. So i need to do more investigation here and it is also only a few weeks away from earnings.

Thanks for reading, see you next week!

Good Luck and Happy Investing

Leave a Reply