Main porfolio changes

SELLING:

$500 (+0,28 %) S&P500 ETF - selling at +15,06%🟢

$UST (+0,1 %) NASDAQ100 ETF - selling at 18,63%🟢

$MFC (+0,22 %) Manulife Financial - selling at -7,12%🔴

$CS (+0,17 %) AXA - selling at +30,34%🟢

$ADC (-2,83 %) Agree Realty - selling at -8,68%🔴

Reasons:

• I’m out of the ETFs, I stopped adding to them months ago but now I’ve decided to kill my positions, as I think we’re in a phase where a very short list of names are moving them, and since that is the case I prefer to choose exactly what companies I want to be invested in.

•Exiting Manulife as it has lost momentum and has been trading sideways for a year, earnings estimates for the following years are ok but not amazing and I wanted to focus my investments on insurers with $ALV (+0,1 %) that has been performing better. Also exiting $CS (+0,17 %) even though I like its valuation. Again I want to focus in just 1 insurer and I prefer not to be particularly exposed to France.

•Sold $ADC (-2,83 %) as again I want to focus on 1 name on the REITT sector, and that is $O (-0,79 %) . The biggest, still growing, strong, and reliable. I do think REITTS will perform better in the coming months once interest cuts start materializing. Realty Income’s yields are higher than usual and I don’t see the stock going down, with potential for appreciation and nice monthly dividend.

BUYING:

$DELL (+0,17 %) adding more to my position

$ALV (+0,1 %) Allianz adding more to my position

$GRF (-4,32 %) Grifols adding more to my position

$PUIG (+0,49 %) adding more to my position

$SSRM (-8,34 %) SSR Mining new addition to my portfolio

$GSL (-0,41 %) Global Ship Lease new addition to my portfolio.

$9999 (-0,76 %) NetEase (ADR) new addition to my portfolio.

Ressons:

•I’m growing the positions I’m confident in, and I belive that Puig, Grifols and Dell are undervalued, all of them are growing strong, with Puig having lost half of its market cap since IPO but growing net income, revenue, and maintaining good revenue forecasts (7-8% annual). Grifols has been performing well, but it is far away from its all time highs and I think that their dominant position, their US exposure (with plasma centers built in the country) and their growing market, are all combined with operational and financial improvements, factors that should help the stock run higher sooner than later… and Dell… probably the only AI player with a P/E close to 20.

•My new additions follow my usual logic for picking… good momentum, good growth prospects, and correct valuation.

Global Ship Lease has a ridiculously low P/E, high dividend with low payout, nice balance sheet that has improved a lot in recent years (deleveraging) and well the macro is not amazing for them (trade wars, end of Gaza war…) but they have a very nice backlog for the next 2 years.

SSR Mining is a gold miner with no debt, long term cost effective gold mines, nice production growth prospects and an amazing momentum linked to golds nice performance. Even if gold price went down a but, I see it as a good investment. I took the oportunity to buy today as it was falling 10% after news of a possible meeting Trump-Putin that affected gold price.

Finally NetEase, mobile gaming Chinese company with low valuation, nice growth projected, zero debt, cash, and a growing market and macro improvement in Chinese regulation. I wanted some exposure to China and I got it with NetEase.

Ben@ben922

Agree Realty is growing faster than Realty Income and has way less debt, don't just chase yield and look at the long term.

••

Carles@Carles

@ben922 I didn’t sell $ADC for a higher yield on $O.

You said $ADC is growing faster, I don’t see that numbers (for now)… in fact $O had a 16% YoY growth in revenue and $ADC a 13%. And the CAGR for the last 3 years is 20% for Agree and 25% for Realty.

That being said, of course $ADC will probably grow faster from now on, as it is way smaller and does not need to invest so much to grow at the same path. The problem for $O is that to keep growing at this path it has to diversify and also buy other REITs wich makes their portfolio less attractive.

My main reason to sell one and keep the other, is that both REITS are ok, and I wanted to focus in just 1. At this point $O was a bigger position in my portfolio, it has a similar (but lower) AFFO per share, and it is a bigger well known company with a prestine track record that is diversifying into new markets. It does have more debt, but their debt is correct and has a better credit rating (not that $ADC has a bad one).

Honestly, I don’t think $ADC is a bad pick, and you’re probably right on the growth side. I belive both of them are going to benefit from lower interest rates on the near future, but markets tend to give a premium to known players and $O is the king of the REITS and the monthly dividend, so I’m betting here that when interest rates lower, there will be an important inflow of money into $O coming from people that just had their money in treasury bonds and stuff like that, that want correct safe yields. I’m 32, I mainly chase share appreciation, and $O is discounted to its historical average, so I see upside on the short medium term.

Maybe I’m wrong and it has just been repriced to a lower valuation due to portfolio deterioration, but I tend to think that it has more to do with the high interest rates environment.

All that being said, I would switch to $ADC if $O gets back to its historical valuations, as I do belive the growth profile for them is better. It’s just for now, I see more upside for Realty.

•