Category: Stock purchase

Check out Europe’s worst stamp collection

I have four stamps.. Not the boring thing you put on letters back in the 90’s, but stamps in the way, I have bought a small portion of shares in four companies that I consider high risk.

It is mostly a Danish term to call these small buys with high risk a “stamp” – It just means that you invest a smaller amount than you usually do, and that you are ok with a bankruptcy or two 🙂

Now I want to show you my stamp collection, which at the moment must be the worst in Europe 🙂

Stock Buy Current Loss
NIO 5,09 3,16 -38%
Saniona 25,9 19,56 -24%
Changyou 19,25 9,41 -51%
ÅAC Microtech 5,25 4,52 -14%

OUCH!!!

Even though these numbers are terrible, I actually don’t mind. I haven’t risked my entire savings in these stocks. I have invested an amount I’m ok with loosing – I don’t plan on it though!

Stocks is a risk/reward type of game. My global ETF’s are not that risky, but I can’t expect a return much greater than 5-8 % per year. With these stamps I hope that one of them will grow 100-500 % over the next 5-8 years. Substantially more than my ETF’s but also with a risk of getting a big fat zero!

To those of you that haven’t heard of these stocks before here comes a small recap of the 4 businesses:

NIO

Chinese car manufacturer who specializes in electrical cars. Their design is no on level with Tesla or the Germans yet, but even if they only get successful in China, that is still a pretty big market!

Saniona

Saniona is a research and development company focused on drugs for diseases of the central nervous system, autoimmune diseases, metabolic diseases and treatment of pain.  (source: Nordnet)

They don’t have a blockbuster with some candidates they are hoping to get approved.

ÅAC Microtech

With an Å (aa) in its name this company will have a hard time to sell outside Scandinavia. Yet they actually sell a lot and have a quite good order book. Unfortunately, they don’t make a profit… yet.

The company specializes in Nanosatellites just like the Danish company Gomspace. I heard about ÅAC in a podcast, where some analysts conveyed the market and different market players and concluded that ÅAC was one the companies most likely to make a net profit in this business.

Changyou

This company is also Chinese and specialized in gaming. The big loss I have in this company is actually a huge dividend! I don’t expect i 50 % yield every year, but from what I have heard the company have made a successful game and decided to pay out the profits from this to its investors. This buy is a hope, that they will develop another game with success.

Why bother with stamps?

Stamps to me is a way to stimulate my need and desire to stock pick. I believe in my strategy, but I also know myself well enough to acknowledge that I need stimulation to keep motivated. These stamps do just that.

For me it is not about the amount of money, but more about finding hidden gems in the stock market. This keep me at my toes and motivates me to read a lot about the stock market in general which in the end will benefit me along the way. And maybe I will someday be able to write an updated article about these 4 stamps and be able to tell you about one or two success stories.

Heja Sverige! New stock buys extravaganza

As I told you in my last post the difference between Danish and Swedish kroner is at a favorable rate (for Danes) right now. Therefor I turned to my watch-list of stocks and found some Swedish dividend stocks to pick up.

This really pins out why it is important to have a watch-list with a lot of stocks on it. Maybe I should write a post about it later on.

By having these stocks in my searchlight I could react fast when the currency hit a low yesterday. My broker have certain rules for minimum buys, and regarding Swedish stocks they have a minimum buy amount of 1.000 Swedish kroner – but with the low rate on Swedish kroner that meant I could buy a lot of different stocks for a small amount of Danish kroner.

These are my buys yesterday:

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Why you should settle with less but strive for more

There are thousands of analysts, experts, experienced traders, hedge-fund managers, billionaires, scientist and geniuses trying to beat the stock market. What makes you think, that you can do a better job?

We are all trying to pick the best stocks possible, but everybody can’t beat the market. But I think you can beat the market if you settle for less than the best possible stocks.

To simplify this, I’ll define that you can beat the market in two ways:

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New year and a new strategy

New year and a new me.

Maybe a bit of a reach, but I have a new stock strategy at least. The strategy is an outcome of a new broker and their beneficial pricing regarding stock purchases in smaller amounts.

Until now I have used Nordnet as my only broker. They have no fees besides a trading fee of 0,1% This is quite good, but there is a minimum trading fee of 3,8€ and over 10 € for US stocks. There are many great dividend stocks in the US, so this price is a bit steep for my taste.

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First buy: Novo Nordisk A/S

We have liftoff!

It feels so great to be underway on my (hopefully) big FIRE adventure. My strategy is to buy different dividend stocks. In a later post I will explain my strategy in detail along with my criteria for buying a stock.

But enough talk and to the business: My first buy is danish company Novo Nordisk. They make medicine and their key business is insulin for diabetes patients.

The data:

  • Novo Nordisk a/s
  • Stock price: 40,20 €
  • P/E: 18,89 (source: nordnet.dk)
  • Dividend (2018): 0,76 € (bi-annual)
  • Dividend ratio: 37 %

I have bought 19 shares resulting in a forward dividend of 14,47 € per year.

Disclaimer – You agree that the use of europeandividend is at your own risk. In no event should europeandividend.com be liable for any direct or indirect trading losses caused by any information available on this site. I blog about my personal trading and is by no means a trading professional.