A potential takeover target: Nokia $NOK

This week saw the first group of earnings come in with the financial sector under the spotlight. The big US banks did rather poorly, for the most part: this is for example the case for Wells Fargo, which we own in one of our portfolios, who took a 14.6% weekly loss while the Dow was up 2.2%. On the flipside, our other bank stock, the Bank of New York Mellon Corp (ticker: $BK ) reported better an expected earnings and ended the week with a 0.6% gain. Even within a badly hit sector, there can be outperformers.

But our last week’s biggest winners were Danone (ticker: $BN.PA ) and AstraZeneca, both European stocks, one operating in the food industry and the other in the pharmaceutical sector, who boasted a 9.1% and a 12.1% gain, respectively !

We have made several buys and sells this week. For starters we have locked in a 5.41% gain on Dexcom (ticker: $DXCM ). This company is so promising that I am sure we will be back, but I don’t trust this overly positive sentiment at the moment and, feet to fire, I would guess that next week the market may pause.

The ETF we own which reproduces the German stock market has run a lot lately, after a period of consolidation (those who swear by technical analysis would say “bull flag”), and this week we have exited the position on $EWG with a 7.12% gain in just 2 weeks !

Finally, we have closed our long position on gold, via the $GLD ETF, with a nice 5% gain in less than two months.

From the buy side, we have initiated a long position on Nokia (ticker; $NOK ) which is a potential takeover target. We’ll keep a close watch on it and if it plays out it can result in a significant upside.

If you want to see all the positions of one of my portfolios, you are welcome to follow me on eToro here.

 

A successful short term trade on $EHTH

Another week of consistent recovery for the US stock market as well as for many others around the world. I remain cautious and still hold onto some hedges because this sudden reversal cannot be fully trusted and due to it being reportedly fueled by a short squeeze for the most part.

While I like to make investments for the long term, I do occasionally perform short term trades and this week I have managed to pull two off! One of them could be traded on eToro and related to eHealth (ticker: $EHTH ). What happened is the classic short selling amplified by the media, with a stock which was trading at 136$ until last week and dropping to below 100$ on Wednesday. I took the opportunity, bought at 99$ and exited at 114$ over the course of two days ! I believe the stock has the potential to go even higher and if I was a more aggressive investor, I would hold on to part of it, but decided to lock in the profit this week.

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There were two more positions we closed this week, on two of the food-related stocks owned in my eToro portfolio, both with a 5% gain, Conagra Foods (ticker: $CAG ) and General Mills (ticker: $GIS ). These were both sold with the automatic sell function available on eToro. I am ready to get back into these two but when any my positions goes above a 10% gain, I have a take profit ready at 5% in order not to give up all the profit if the stock price goes down passed that mark. I then set up a price alert to be notified if the price goes up again past the sell price and re-evaluate my view on that particular stock.

I am also very satisfied with this week’s recovery in my $WFC position, with a 26% jump in just 4 trading days.

So now I am 49% in cash on my eToro portfolio and continue to look for more investment opportunities. One from my watchlist I am prepared to jump into is $BABA , but that will depend on how next week goes.

Enjoy the long weekend and for those who celebrate it, have a happy Easter !