Responsible Investor Portfolio Weekly Update, September 26th, 2020 | $TCEHY $NEM $BK $SYF $CLIX $GRUB $PCG $LVMUY $LRLCY $PEUGF $WBD.MI $DSV.CO $DANSKE.CO $NOW $QCOM $DQ $FDX $AMWL $SNOW

If it wasn’t for a strong day on Friday, all US markets indices would have been down this week, but the Nasdaq somehow pulled off a 1.2% weekly push higher, whereas the S&P500 was 0.6% lower and the Dow lagged with a 1.7% decline. The Russell 2000 (the US small caps index) tanked finishing the week 4% lower. The situation wasn’t that different in Europe as the Stoxx was down 1.1%, the Italian FTSEMIB even lower with a 1.4% decline and the Danish OMX25 was only nominally higher.

Finally a buy, and the first stock from the transportation sector in our Responsible Investor portfolio: DSV Panalpina ($DSV.CO), a Danish shipping company. I have been meaning to go long on this stock for months and waited for a pull back that never came. This is one of the typical mistakes of irrational investors who are often unwilling to buy a stock that is always going up. In fact, if the stock is undervalued, the fact that it is appreciating is a pro, not a con, because investors have all they need, ie valuation and momentum, on their side.

The pressure is mounting on Nikola ($NKLA), the latest hype in the EV stocks as the CEO resigned just days after Hindenburg Research released a report accusing the CEO of overstating claims on the readiness of Nikola’s technology and misinforming investors. After a fall of 42% in just one week the stock is still worth 7B$ with annual sales of 440k$: think about that for a moment. The stock is still up 88% YTD but has fallen 75% from the July high. I will keep staying away from it and have another EV stock on my watchlist.

Our portfolio was down this week, but not as much as the market. This is thanks to tech stocks like $GRUB, utility company $PCG and our latest purchase $DSV.CO, all up 3+%. $NEM was hit because of the sharp decline in the price of Gold. Both our banks stocks were affected by the weekly downturn. Overall, though, it is good to see our RI portfolio having beaten the market this week.

It looks like there is no going back to the previous normalcy, at least not in the near future given the rising number of Covid-19 cases globally, therefore shipping stocks are poised for further growth. On my watchlist I have $FDX which looks grossly undervalued based on future earnings estimates. It is up 57% YTD whereas competitor companies like $UPS and $DPW.DE are up 37% and 11%, respectively.

After months of depreciation relative to the euro, the dollar has been showing signs of strength: the EUR/USD is down from 1.18 to 1.16 and is now at the 138.2% Fib level from the March 11th relative high: will it rebound from here ? I periodically report on the the EUR/USD as our portfolio is calculated in USD and has a mix of stocks traded in USD, EUR or DKK, the latter being pegged to the EUR.

The table below summarises the portfolio performance since inception.

If you don’t want to miss my alerts, please subscribe to Responsible Investor or follow me on Twitter. I also run an eToro portfolio which currently has 35+ positions and can be accessed via this link.

The #US journey towards #energy independence in 2 graphs | #ActiveInvesting

Featured stock of the week: Applied Materials

Despite the recent drop following Q1 2018 #earnings, Applied Materials, $AMAT, still looks like an attractive investment idea.

The reported earnings show very good growth in both the top and the bottom line, however the analysts were put off by the guidance provided during the conference call.

From a valuation point of view, the stock still looks cheap with a PEG ratio (5 years expected) well below unity as you can appreciate from Yahoo Finance.

Now that the stock is trading below the 200 days moving area it may be a good idea to see whether and how this sudden drop is temporary or the start of a downtrend prior to initiating any position or accumulating.