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Video two exp 1

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So, over the last couple of months, there has been some more volatility in markets, particularly over the summer. And that has thrown up opportunities for me, in terms of interesting stocks and interesting valuations. One particularly new name is Ultra Electronics that I bought into. It's a company mainly facing defense markets. Those markets have been weak over the last five years or so, as we've seen a reduction in budgets, but I think that is turning around, both the sector, and then Ultra Electronics itself. I think it has also seen some positive changes, and within the company, and that's a very exciting new stock position for me. Over the last year, there has been a big under-performance from both mining and oil-companies, and YRC is big on the performance. That always peeks my interest. So, I've been looking a lot more into stocks in these areas. I haven't really found any value in the mining space, so I have really limited exposure there. And that's because I think the supplier look is still bad, particularly in INO. In oil, however, I do think that's quite interesting, and I have been buying into names, primarily because you've already seen a reduction in oil supply, particularly in the US, where Shell production is now falling, month a month. And you've got some oil companies at very attractive valuations. So, I have initiated quite a big new position in BG, to increase my rule Shell position, and now that's about six percents of the fund with oils as a whole buying, about nine percents of the funds today. So, outside of the Shell BG, they tend to be much smaller cup companies, and, by their nature, obviously more risky, because they are more focused on one particular field or region. But I do think there are some interesting opportunities there, so I bought into about a half percent positions in Soco, Nostrum, Genel, and Ferro, to make up the rest of my oil position. So, Shell today is yielding about seven percent, and, an even higher if you buy it through BG. And I very much think that deal is very good news for Shell, it actually increases the cash rate generation of the company over the next couple of years, as the big fields in QCLNG in Australia, and then in Brazil, vamp up. And so, in fact, I think Shell can cash cover its dividends, sixty dollar oil price, which is quite a low level versus what we've seen historically. And so, I do think that dividend is very secure, both from a cash flow generation point of view, and also given the very strong balance sheet you have at Shell, which I think is set to leading. And so, I am quite confident that dividend will be continue to be paid, as you have seen it being paid all the way from the Second World War.

Video Details

Duration: 2 minutes and 24 seconds
Language: English
License: Dotsub - Standard License
Genre: None
Views: 17
Posted by: cjanuary on Oct 6, 2015

Video two exp 1

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