After a couple of days without trading signals, today our trading algorithms created seven signals. A further signal was created for ROST, which was unusual, so let's start with that one first.
Close: Ross Stores Inc
Ross Stores Inc (ROST) accounced that they suspended their quarterly dividend for the time being. We don't see this changing any time soon given they reported a quarterly net income of negative USD 306 millions, i.e. a loss. As a consequence ROST no longer meets the requirements to be counted as a dividend aristocrat. This is a bit sad to see since they became a dividend aristocrat only earlier this year.
We started a position in ROST in March. This week we sold all shares to close the position. The average sell price was USD 94.20. With unit costs at USD 75.74 this represents a gain of 24.37%. This is a very good result given the circumstances due to the high volatility in the financial markets caused by the Coronavirus pandemia.
New: Mastercard Inc A
We started a new position with Mastercard Inc A (MA). MA is a growth stock. We expect their growth story to continue although we anticipate that there will be an impact from the Covid-19 crisis.
Average buy price was USD 292.54.
New: Visa Inc
Another addition to our US portfolio is Visa Inc (V), also a growth. Similar story to Mastercard: we expect it to continue. Here, too, we expect the growth story to continue. The COVID-19 crisis will have an impact, though. Because of lockdowns worldwide both Visa and Mastercard may see reduced revenues. As countries come out of lockdown and as the economy recovers, results of these two financial services stock should improve again as well.
As with Mastercard, we see Visa as a longterm investment. Average buy price was USD 189.37.
Increase: Nucor Corp
We've had our Nucor Corp (NUE) since early 2019. The stock price has come done since then from about USD 57 to below USD 40. We added to our position along the way.
This week our trading algorithms created a buy signal. We added more shares at an average price of USD 39.63.
NUE is a dividend aristocrat and currently has a dividend yield of about 3.9%.
Increase: Walmart Inc.
The trading algorithm also produced a signal for Walmart Inc. (WMT). We've had this position since 2019. During the COVID-19 crisis, the stock performed well. As a retailer WMT was an essential business and was able to keep its shops open. We reduce our position a couple of times in March realizing gains.
We had a sell signal in April as well, this time at USD 126.01. Today they buy signal was at USD 120.02. In essence the trading algorithm reduced the position somewhat and is now increasing it again. In other words: sell high, buy low. In some sense the algorithm treats "high" and "low" alwasy as relative to the overall market.
Increase: Walgreens Boots Alliance Inc.
The next buy signal was for Walgreens Boots Alliance Inc. (WBA). We started this position in 2018. The stock price development has been disappointing as it dropped from about USD 65 to about USD 40.
Along the way, however, we did a few trades. This week's buy signal helps reducing the unit costs. Note that the trading algorithms are designed such that it seizes buying opportunities without exaggerating the exposure to a given company.
This week we added more shares at an average price of about USD 40.86.
Increase: The Coca-Cola Company
The final buy signal today was for The Coca-Cola Company (KO). This is a position we started in 2017. In March and April this year, the position was reduced a couple of times to realize some gains at prices between USD 46.98 and USD 56.85.
Today's signal added shares again at a lower price of about USD 45.56 per share.
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