Porch-folio Update - Sylvania Saves the Day
Tricky week overall with the Porch-folio down -0.25%, underperforming both the FTSE100 and the others on the investing platform.
Mining stocks overall are struggling to find their footing, as concerns around Chinese demand continue. Stimulus from the administration has been limited so far as it appears increasingly that the domestic economy needs some support
Could have been worse had it not been for Sylvania Platinum, which has been a steady underperformer these last few weeks. The company announced earnings for the year to June. The company exceeded production targets, with production up +13% as compared to the prior year, and revised up guidance for the next 12 months. As such revenues came in significantly ahead of market expectations with revenue only down -14% as compared to the previous 12 month period.
There was a little trading in the period for the Porch-folio:
Exited - Ecopetrol, Yellow Cake, NAV Kazamtomprom
Reduced Existing - Mercadolibre
Added to Existing - Eramet
New Positions - Bunge, Arcos Dorados
With the recent highs in uranium prices, I took the opportunity to exit the uranium stocks in the portfolio at significant profits. The Colombian state oil operator Ecopetrol we doubled the position when it was particular weak, and reaped the dividends when oil (inevitably in my opinion) rallied back up to USD 90 a barrel.
Reduced MercadoLibre to take some profits, bring the overall cost price of the position down and to hopefully reduce overall portfolio volatility in future. It has been a particularly volatile stock recently. The Gabonese coup has provided a nice entry point to add further to Eramet, and as such have increased the position.
The new positions have been ideas I have been following for some time. Adding Bunge will provide exposure to agricultural commodities which I have been looking to add to balance the portfolio. Arcos Dorados is the franchise holder for McDonalds across 20 countries in Latin America. A less volatile means to get exposure to Latin American consumer economy then MercadoLibre. The stock has sold off in the past few weeks as such provided an attractive entry point.
Find more on the Porch-folio Capital website, including following the Porch-folio's overall performance.
The Porch-Folio has been outperforming since the I have begun these weekly updates in May.
Don't miss out on the updates, posts and individual company analysis!
Porchester Capital | Investment & Risk Management Expertise
Porchester Capital - Global investment insights from an investment and risk management expert.