Share purchases: July 2017

By | August 13, 2017

Author: Mr DDU & Mrs DDU.

Disclaimer: Stocks mentioned on this blog are for general entertainment/documentation purposes only, following our own investment journey and decisions. Nothing in this article should be considered investment advice nor is intended to be investment advice. Please click here to continue reading our disclaimer. By viewing any page on this blog you are agreeing to the linked terms & conditions.

We’re into month 7 of our new investment strategy. Now that we’ve been successful with our IVF, we’ve decided to put at least $1,000 a month towards buying shares.

So, let’s get into it:

What we bought: National Veterinary Care (ASX:NVL). We bought 241 shares at $2.48 each.

What National Veterinary Care do: They aim to be one of Australia and New Zealand’s largest vet groups.

A few numbers:

Market Capitalisation: $131 million

Dividend increase streak: Not started yet

Latest result: 6 months to 31st December 2016

Latest dividend increased by: No dividend declared

Latest earnings per share (EPS) increase: 772.6%

Operating Activities cashflow: $6.4m

Net Profit after tax: $2.86m

Why we bought more National Veterinary Care shares: We said in (reasonable) detail in our first purchase and second purchase about why we considered National Vet Care, even though it’s not paying a dividend yet.

We wouldn’t normally go back to buying the same share so often but each month we look to see what’s trading at the best value. If one of our long term dividend favourites, like Ramsay, aren’t trading at great value then we next look at other ones we already own. National Vet Care keeps making acquisitions which improves its future rolling 12 months of revenue and profit. This is both good for future growth of our shares and also made us think the share price doesn’t reflect all the future growth. Hopefully they will start paying a dividend this month and keep growing it for many years to come.

Risks: As long as the number of pets in Australia/NZ keeps rising then there shouldn’t be that much risk.

Another July buy

What we bought: WAM Microcap (ASX:WMI). We bought 432 WAM Microcap shares at $1.17 each.

What WAM Microcap do: It’s an investment company following in the footsteps of the other WAM listed investment companies except this one invests only in small cap stocks. It’s new but we think it has a great future.

Why we bought WAM Microcap: We think the WAM companies are some of the best dividend shares in Australia and this latest one gives us diversification to small caps that we’d never consider for our portfolio. Diversification is always a good thing if it keeps up a strong performance. After two months the WAM Microcap portfolio had already returned 5.9%. Hopefully it turns into a strong dividend payer for us over time.

Risks: The small cap space is much more volatile than most others, but that could just give us more opportunities to buy at a discounted price sometimes. Key person risk is important to consider, but we’re only going to let this be a smallish part of our portfolio over time.

Final thoughts

So, there are our 2 July buys. We invested a total of $1,125, nicely beating our goal of $1,000 a month. We think in five years time both of these will be solid dividend payers for our portfolio and that’s the type of stock we want – what’s good for us now and in the future.

What investments did you make in July?

Thanks for reading this article about our investing journey Down Under.

Onwards and upwards!

12 thoughts on “Share purchases: July 2017

  1. Dividend Diplomats

    DDU –

    Nice job staying consistent, buying businesses you understand and hopefully the turn back some nice cash flow to you! In addition, great work staying on target to meet/exceeding your investment goals!

    -Lanny

    Reply
  2. pia

    Looking good! I like the explanations / reasoning behind your stock purchases. Will definitely be interesting to see how it all looks in 5 years time.

    Reply
  3. Graham @ Reverse The Crush

    Thanks for sharing your share purchases and amount invested! I’m almost considering doing a similar post each month. I’m still undecided right now though.

    Also, congrats on investing $1,125 into the markets! That’s awesome that you beat your goal and are able to get that much closer to FI. Keep it up!

    As for my purchases, I added to 3 companies in July – ENB, CM and REI.UN – all on the Toronto stock exchange.

    Thanks again for sharing. I’m looking forward to following your journey for years to come. 🙂

    Reply
    1. Dividends Down Under Post author

      Cheers Graham. If it’s what you want your readers to read, then why not? We see the investing as a big part of our journey so we want to share what we’re buying. Even if it’s not ‘super popular’ it’s good to write down your thoughts – you better be confident with your choices because you’re sharing it with the world.

      Nothing like home sweet home when it comes to investing! 🙂

      Glad to hear you’ll be reading for years – we will be blogging for years for you 😀

      Mr DDU

      Reply
  4. Quixotic Dreams

    Thanks so much for sharing all that you do.
    You’ve been a great inspiration and kind of why I’ve decided to try out blogging my journey too, only I’ve literally just started.

    Looking forward to watching your portfolio continue to grow!

    Reply
    1. Dividends Down Under Post author

      QD, that is so nice of you to say and we’re so glad we have inspired you 🙂 We have added you to our RSS feed so we can follow along with your journey.

      Good luck and thanks for your well-wishes 🙂

      Mr DDU

      Reply
  5. wealth from thirty

    Looks like a great month. It’s interesting that as Australian family sizes get smaller, couples and small families seem to buy (extra) pets and as the reduction in family size reduces relative expenses I suspect more of a family’s income will be available for pet care. There also seems to be a trend of caring for pets as if they’re human and by proxy spending more money on their health, wellbeing and even insurance (I had a retriever growing up and this was pretty much the case, though we never had pet insurance).

    best of luck(?) in the reporting season.

    Reply
    1. Dividends Down Under Post author

      Yeah, essentially what you said is why we really like the pet industry space and could be seen as almost as defensive as private hospitals or supermarkets. National Vet Care could be a good one for us over the next year or two, hopefully.

      Thanks WFT – you too! We will do a summary post after it’s done.

      Mr DDU

      Reply
  6. Strong Money Australia

    Interesting purchase of WAM Microcap. I’m sticking with WAM Research and WAM Capital. That’s enough WAM exposure for me, as there is inevitably some overlap in their funds.
    I have a position in NCC – Naos Emerging Opportunities, which is small cap focused and has performed quite well in the 4 years of its existence, with a growing dividend.

    I bought some BKI in July 🙂

    Reply
    1. Dividends Down Under Post author

      Yeah you’re right, there is a fair bit of overlap. We’re going to focusing on building up WAM Research up from here, but WAM Microcap looks like it will be significantly different from the rest, so we’ll see how it goes with that one. Interesting NCC – I hadn’t heard of that one before, I’ll have to check it out 🙂

      Nice buy with BKI, definitely one of the better LICs out there.

      Mr DDU

      Reply

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