Wednesday, April 21, 2021

Sold ADP and AENA

 ADP has been showing signs of distribution in the past month.  Falling prices on higher volume:

It could be due to India's covid situation.  But when reading charts: "Ours is not to wonder why".  

Normally I could ignore little wobbles in a company's share price.  But I think the bull market is coming to an end.

Source: Hedgeye, Jonesy's twitter

For AENA, it was a close decision on whether to let this stock go or hold it long term for dividends.  Its got a decent yield, monopoly position, and could survive a Eurozone breakup.  But I have enough dividends to live off, and it doesn't have enough growth potential - with a 5% yield while paying out 100% of their 2019 earnings.  I need more dry powder for the next cycle.

Sold 300 shares of ADP @ 101.10.  Profit SGD 8.8K, or 22% over 6 months.  And 210 shares of AENA @ 134.25.  Profit ~ SGD 5.1K, or 12%.

As a "covid recovery" trade, they've been disappointing.