Quiet Contrarian. Ep 11: Trades for November 2020

After a couple of quiet months, there was quite a bit more action this month. Bit of a roller coaster, with the US elections and the Vaccine news causing a market rotation. Largely took this opportunity to clear out some mistakes, though did jump on one opportunity.

Buys

Regis Resources – RRL:ASX – A very safely run gold miner. My read of it is that their price took a hit because they’re too safely run. They have a massive hedge book geared towards taking the edge off the swings in commodity prices. So whilst all the other gold players were raking in huge money off the speculative gold price, RRL were ticking along reasonably. I added a chunk to my holdings.

Sells

Advance Nanotek Ltd- ANO:ASX – This was an erroneous purchase by me. I hadn’t factored in the extent of their write offs when I did my initial valuation. With these removed, the company was looking incredibly overvalued, plus they had taken on increased risk (by warehousing for their distributors) before Covid hit. Increased costs and a revised valuation made them much more overpriced than my initial estimates. When their share price went back over my purchase price I took the opportunity to get out with a small profit. Will keep an eye on them to drop to a more reasonable valuation.

ANZ Bank – ANZ:ASX – One of my longest holdings, and a bit of a sinking ship. I’d missed many opportunities to get out over the years as the share price just kept on sinking. I’d like to see a bit more stability in the industry before getting back in. Though there is an argument that this is the turnaround. With increased money printing, and record low interest rates. Loan’s may be about to shoot through the roof.