Both remaining large caps of the portfolio, Walmart and Nestle had some big news today.
Seems to be involved in a bribery scandal in Mexico which they tried to cover up on company level.
A commentator speculates that this would end in a fine of 100 mn USD, I have no idea if this is realistic or not. In any case, I will sell Wal-Mart as soon as I find something else.
Nestle paid 11 bn USD for Pfizers baby food division, a 19.8 (!!!!) EV/EBITDA multiple after a bidding war with Danone. No doubt, Nestle is a great company, but for my taste at a current 12xEV/EBITDA, a lot of positive developement is already priced in.
So with the VWAP of today (after cashing in the dividend), I will sell the Nestle position at today’s VWAP.
Originally, this was a pair trade with Green Mountain as short psotion. For the time being I will keep the Green Mountain short open.
SIAS went ex dividend today, howver loosing some more. In order to take adavantage of the low price, I will reinvest the Dividend proceeds at today’s VWAP.