Monthly update: Apr 2013

This month saw new highs for S&P500. Meanwhile, a growing number of fund managers came out against the level of optimism in the market. The claim is that the new highs are artificially maintained by a combination of these reasons a) record high profit margins of the private companies b) low level of interest artificially maintained by the FED, and c) cheap credit which has nowhere to go but the stock market.

Definitely the market looks quite expensive at the moment. During my research, I looked at at least 10 different companies – none of them cheap. It is even harder to find something crossing my threshold level of 30% return.

I am keeping an eye on the following stocks: National Oilwell Varco (buy below $60) and Greggs Plc (buy below £4).

These are the trades I made.

Company Transaction Details Profit
Roche SLD 10@231-1.95 Sfr 960
CAF BUY 4@262-4
AA BUY 50@8-0.76
FTE BUY 100@9.88-0.67
MT BUY 50@12.29-0.69
MT BUY 50@11.9-0.64
MT BUY 50@12.4-0.69
MT BUY 100@11.32-0.57
MT17Jan15 $13PUT SLD 100@3.05-0.89
MT17Jan15 $15PUT SLD 100@4.4-1.08
AMAT18Jan14 $10P CLOSE +100@0.22-1.07 $143.9

Dividend – Withholding Tax = $62.44 (DELL+HPQ) – $9.37 = $53.07
Other charges = $1.97 (FTE Transaction tax) + Sfr 5.26+ Sfr 1.21 (CFD Charges) + $32.16 (Interest Paid on USD) = $40.93

Total Profit = $1155

I kept adding MT, FTE, CAF and AA. These were opportunistic buys. My reasons for selling a part of my Roche holdings are here. Even though I have decided to exit Alcoa in favor of MT (see here), I think $8 is a deal. So, for the moment I am long two companies instead of one.

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