Bought Offshore oil companies

Over the past few days, I bought a small amount of US-listed offshore oil companies.  Rig holders, OSVs and drilling.  Around 3.5% of my portfolio.  I believe that, barring a recession, both shallow and deep water exploration and development will return over the next few years.

I finished buying the day before the market dived on Italy worries. We'll see how it goes.

Bought Cardinal Health (CAH)

This week, bought 417 shares @ USD 53.55 at a total cost of USD 22,332.

CAH released bad earnings early this month, due to write offs in its newly acquired medical equipment distribution.  This drove the stock price down 20%, allowing me to buy at just below 12X FCF.

Selling Kering. And Inner Peace.

Sold my Kering shares at Euro 477.50 on 31st April.  Profit was SGD 57K, or 180%.  Over 4 years.

Since I bought Kering in early 2014, its main brand Gucci has transformed from a bland, logo-driven luxury brand to a young, exciting one.  Unknown designer Alessandro Michele took over and revitalised the brand, making it younger, more colourful, and gender neutral.  I don't understand any of this fashion crap, but sales are up double digits for the last 7 consecutive quarters:

The brand's transformation is best captured in pictures.

Severed head at fashion show:

Collaboration with graffiti artist Gucci Ghost:

Handbags - the bread and butter of the industry - now with colourful prints:

Now Gucci is a trendy, hip brand, popular with millennials.  It is the hottest fashion brand in the world.

Hard to know if the decision to sell was correct.

At a PE of 30, Kering is now reasonably expensive.  But the trend is still up - both the stock price and fashion trends - and I cant see any sign of it stopping.  Its easy to see the stock doubling again from here due to increased sales combined with operating leverage.  OTOH, a lot of good news is already priced in.  Fashions come and go.  Trees don't grow to the sky.  Especially for a company that sells handbags - its not the next Google or Facebook.

I chose to sell because of:

• Valuation
• The chart was going parabolic.  Theres no real support to tell when the uptrend breaks.
• I want to lighten up on stocks near the end of the business cycle.

Someone once told me, even when a stock shoots up after you sell it, you should be happy for the guy who brought it from you.  Because even if he makes money that you could've made, he's still taking a greater risk than you.

Inner peace.