Portfolio Update In Time Of COVID, Apr. 2020

Q1 2020 was a brutal quarter for the markets and for blog portfolio, which registered -24% YTD, but slightly better than S&P Index (-32%) and FTSE Global All Cap Index (-25%). All my names turned to negative P&L, but still paying dividends. I have downgraded all my Target Prices temporarily by -30% due to unknown effects of COVID–19 (except of Kazatomprom).

In terms of changes to the portfolio I added back Illumina (ILMN) @$274/share and doubled down the exposure on CBRE Clarion Global Real Estate (IGR) @$4.8/share.

ILMN has limited exposure to the economic cycle and the secular growing trend of genomics is intact (the 30% discount to target price is undeserved).

IGR is a well managed real estate company, low leverage and a solid dividend play (10%+ yield) with a diversified exposure to global real estate assets.

Kazatomprom (KAP LI) looks as the most attractive name in my portfolio having the highest upside and a safe dividend yield. The company delivered betters results than expectations despite low uranium price in 2019.

I have little visibility on Fosun (0656) as the company is mainly active in 2 sectors with opposite trends (Healthcare and Tourism). Still I project a 5%+ dividend yield this year.

Best Inc. held up decent in the bear market. The company is engaged in providing supply chain solutions offering a cloud based platform, which is integration of online and offline retail to offer delivery. Looking ahead, the continuous growth of e-commerce should create tremendous market opportunities for integrated services and solutions. The company first time turned to profit in 2019.

Revance Therapeutics (RVNC) was the star in my portfolio. The stock jumped 68% and I sold covered calls @ strike price of $30/share for an extra 18% return. This extra return was not included in the portfolio performance. The company develops as planned and we may expect just a 1-2 quarters delay for the launch of the new “Botox”.

British American Tobacco (BTI) story remains solid (7% sustainable dividend yield). Moreover they are also working on a vaccine for Covid-19 with their biotechnology division.

Eagle Hospitality Trust (LIW) produced a very negative surprise, its loan being called by the bank and the dividend payable in March 2020 was suspended. The stock was also suspended from trading. For more details on the story please check on company IR site. I expect the worse and I have learnt a bitter lesson of the results of poor corporate governance.

Unfortunately, I have not executed my latest blog post – selling Tesla short. This would have been a very good trade and would have doubled the investment as of today. I decided to keep a long only portfolio for the blog.

Please note I upgraded my site – Investable Portfolio page – with a link to my live model portfolio. I have paid personally a subscription for this feature to https://stocks.cafe/ a very good site to analyze portfolio based in Singapore. Please check it out.

Stay healthy !


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