Managed Accounts Trading Notification - Sale Of Fmg And Nab
Good afternoon,
Yesterday we sold our holdings in both Fortescue Metals and National Australia Bank.
FMG - the stock moved up quite sharply since our purchase on July 23rd on the back of the China growth story and their quarterly report that we flagged in the purchase email. We sold at $4.5945, providing a gross profit of 9.6% and adding 1.4% to the portfolio in a little over two weeks. The stock hit price resistance at $4.67 and began falling, so without any additional data the stock could be range bound around these prices for a while and we thought it best to lock in the profit.
NAB - we have held National Australia Bank shares for three months and, although we have collected a dividend, the stock has not rallied beyond our entry price. NAB reported its results yesterday morning, and suffices to say we (and the broader market) were not immediately impressed. With the stock beginning to fall again and the possibility of seeing $23 or below on the horizon we took the opportunity to sell at a level which leaves us near break even on the transaction after taking into account the dividend. We may very well be able to buy back the position again at lower levels.
These sales leave the portfolio around 60% in cash, and in a great position to accumulate more stock on a pullback. Again our unique approach to managed investments has proven both resilient and profitable in uncertain markets.
If you would like to speak with us about anything at all, please call the desk.