Recent buy and sell – PFG and BXLT

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imageShire, a European drug company to buy Baxalta for $32B, valuing the BXTL at $45. Shareholder will get $20 cash and 0.12 in Shire stock for every share of BXLT. Well, I’m selling at $40.xx making 35% profit. My brokage account won’t let me trade foreign stock, so if I had to call it in, it will cost me $45 to make the transaction. I have 10 shares of BXLT, that’d $45 that I’d supposedly gain from waiting out until the transaction is complete would cancel out. For that, I decided to sell all of my BXLT.

I bought another 10 shares of PFG @40.xx. So the yield from BXLT was $2.8/year, now the yield from PFG $15.2/year @3.72%. This is a no “brainer” swap for me. The market might go down further, but as long as I don’t sell, the company is solid, I’d expect the dividends(cash flow) will keep coming during my retired years.

Principal Financial Group, Inc. is an investment management company. The Company offers businesses, individuals and institutional clients a range of financial products and services, including:

  • retirement,
  • asset management
  • insurance

Its segments include

  1. Retirement and Investor Services,
  2. Principal Global Investors,
  3. Principal International, and
  4.  U.S. Insurance Solutions.

Current P/E 9.8, forward PE is 8.88 that means the company is expected to earn more this coming year.

I first bought it at $5x.xx, the stock sky rock to $60 before decended to the current price. I take this opportunity to average down my cost. If it go down another 10%, I’d deploy more cash to buy.

What’s about you? Have you bought any stocks lately? What do you think about my Baxalta sell?

GA

2 Comments

    • I agree with you. I’m happy to be fellow shareholder!

      I was in Iowa for a visit, and PFG is felt everywhere from stadium to partnership with the local businesses are strong. Their structure is sound.

      Best of luck on future purchases.

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