Great documentary about legendary investor John Templeton
Eddy Elfenbein’s 2013 buy list has beaten the S&P 500 for the 7th year in a row. So don’t miss his 2014 buy list.
Good analysis of the US-based Dover/Knowles spin-off
Nate from Oddball on dividends
Finally, reader and commentator Martin seems to have started his own blog with posts about Eurokai and IMW Immobilien. Keep going !!!
Yesterday, Valmet was spun off from Metso and trading for the first day.
The price action on the first day was quite interesting. The first trade was around 7,20 EUR, far above my threshold of 5 EUR, then the price went down to ~6,30 before rocketing up to 8 EUR. ending up at around 6,65 EUR. Today, the stock is trading at 6.80 EUR.
For me, this is too expensive, but it is still interesting, how volatile such a first day of a spin off really is. Intraday fluctuations of ~30% clealry show that this can’t be fully efficient and price discovery is not that easy. Trading Volume on the first day was around 45 mn EUR, or less than 5% of market cap.
It is interesting to see that at the first day for the Osram spin off, volatility was lower and the stock price ended higher than in the beginning:
Trading for Osram on the first day was around 25% of market cap. I guess, that Siemens had much more index investors than Metso. In this case it would have been better to buy Metso pre spin off
Performance:
Performance for the month December was +1.2% vs. +1.3% for the benchmark, an underperfomrance of -0.1%. For the year, this resulted in +32.8% vs. +29.0% for the Benchmark (50% Eurstoxx 50, 30% Dax, 20% MDAX), an outperfomance of +3.8%.
Since inception (1.1.2011), the score is now +75.0% for the portfolio (20.5% p.a.) vs. 40.7% (10.4% p.a.) for the Benchmark.
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value and opportunity 