Time for filing annual tax returns. In 2011 we sold more stocks at a loss than at a gain. Overall we posted a small net loss. Most of losses in recent years have come from Nokia, Talvivaara and BYD. Selling at a loss is always very hard to do.
I decided that we should exit completely from Talvivaara and BYD. The remaining positions were too small to make any difference in the portfolio and on the other hand I feel Nokia has best chances for turnaround out of these three. So all chips in the "turnaround" category will go to Nokia.
Why get rid of Talvivaara? Can you tell us more specific why? Do you think that their goals are too far or unreachable or.. environmental issues, nickel price?
ReplyDeleteI have quite a lot of Talvivaara shares in my portfolio. I started bying them this year late february well above 3,5 euros and been bying them on monthly basis ever since. I will keep on picking them and have patient with this company.
I also like the prospects of Talvivaara, but at this point of time I see my money yielding better elsewhere.
ReplyDeleteTo begin with, Talvivaara has been delivering mainly disappointments lately. Death of an employee due to excessive gas levels, Big environmental problems (releasing way more chemicals to nearby lakes etc. then it should) and most importantly they have been constantly missing their targets regarding ramp-up of production.
Talvivaara is utterly dependent on Nickel price. At this point of time the macro picture is less than rosy so that's also why I tend to put still more money to defensive picks.
Talvivaara also has only one mine. If it would be shut down even for months they would be in big trouble.
Also, to my understanding Talvivaara is only feasible with the current method of extracting metals from ore (bioheapleach). That involves a lot of chemicals so they have no other choice but to get their act together.
If they do, I might buy in again.