Sold 58 shares Omega Healthcare Investors

This week I sold all my 58 shares Omega Healthcare Investors at a price of $38,26. As a result of this sale I reduce my yearly estimated dividend income by $136,56.

My average purchase price of the Omega Healthcare shares is $27,90 so I’m removing a 9,5% yield on cost position from my portfolio.

My return on investment in euro’s:

Purchase 58 shares-1.365,27
Sold 58 shares1.974,22
Dividend220,04
Profit828,99
Profit %60,7%
ROI per year31,9%

I decided to sell Omega Healthcare mainly because I don’t feel comfortable with the performance of the tenants of Omega Healthcare Investors. Tenants of Omega Healthcare are companies running skilled nursing facilities and many operators in this market are struggling to stay profitable.

A few times already Omega Healthcare Investors adjusted their contract with major tenants resulting in reduced rent income or taking over capital investments which normally were paid by the tenant.

As a result the payout ratio of Omega Healthcare is very high at the moment and as I see it realistic that some more rent discounts have to be given to struggling tenants I decided to close this position.

I will miss the steady dividends I enjoyed since 2017, but I’m not feeling comfortable by the performance of the tenants of Omega Healthcare Investors so I’m happy to close the position and realize the capital gain.

Sell 30 shares Wizz Air Holdings

This week I closed my position in Wizz Air Holdings and sold the 30 shares I own.

I purchased my shares Wizz Air Holdings in January 2017 at a price of 1.824 pence and I sold them this week at a price of 3.209 pence.

This is a return of 75,9% in 2 years and 4 months.

I sold the shares Wizz Air Holdings to reduce my exposure to the very cyclical Airlines sector. Wizz Air as ultra low cost carrier is operating a beautiful business model with really low prices, but based on the above average growth last years I decided to sell this stock.

Wizz Air Holdings is not paying any dividend so my yearly estimated dividend income is not influenced by this transaction. I will keep Wizz Air on my watchlist with a trigger to posibly pick up the shares again if the shares are below 2.500 pence.

Rebalancing my portfolio by selling a few small positions

Today I sold:

10 shares Macquarie Group LTD @ AUD 111,60
45 shares Ryanair @ €15,49
3 shares Stamps.com @ $248,05
3 shares Berkshire Hathaway @ $200,14

Basically these are 4 small positions in my portfolio. Nowadays I consider positions below €1.000 small. These small positions are a leftover from the year I started with investing in stocks on a monthly level. At this time I had the tendency to buy 2 or 3 different stocks a month to be able to diversify my portfolio.

The 4 stocks listed above are not in the first third of my watching list. So I don’t expect to increase the size of the positions in this year. Also I have problems keeping informed about Macquarie Group, because Australia is far away and I rarely have articles or reports to read about Macquarie Group.

Although I’m pleased with the peformance and dividend of Macquarie Group I still decided to sell this position, because I consider it important to have articles and analysis availble so I have other sources than the presenations published by this bank itself.

As a result of my experience with Macquarie Group I added a rule to my personal investing guidelines to also ask myself the question if enough publications from others sources than the company website are available so I keep myself challenged in making an assessment if I can find enough articles about a share I’m considering buying.

As a result of closing these small positions I will be making another stock purchase later this month.