Freetrade diary #7 – July

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It’s been a good month for my Freetrade portfolio. Well, in comparison to the last few months at least.

At LONG. LONG. LAST. I am now in the green with Unilever; my patience over the last 12 months has been rewarded, albeit probably temporarily.

Why?

Well they didn’t smash expectations, nor did they increase profit expectations ten-fold. They merely didn’t do as shit as the forecasts suggested over lockdown.

Sales in e-commerce, increased demand for hygiene products and growth in North America helped somewhat mitigate the losses in areas that would usually be booming this time of year such as, ice cream sales (30% decrease) and food services (40%), repaying my faith in it being a well diversified company.

With analysts predicting a 4.3% fall in sales compared to the same quarter last year, Unilever announced this fell a mere 0.3%.

As a result the share price shot up over 9% on the day of announcing and has stayed around the same price point since (at the time of writing).

Pets at Home have also performed incredibly well over this month. After taking an initial slump, they’re now the highest they’ve been since the beginning of June and not far off their 3-month high since the middle of lockdown (260p a share).

Update 01/08: On the final day of the month, as this was published, PETS shot up over 18% off the back of the news around their online sales seeing a 70% increase over lockdown. They were also one of the fortunate few retail stores who managed to continue trading, albeit with reduced services.

One major change within my portfolio saw me sell all my holding in Infrastructure Renewables Group.

Why?

I was bored of it to be honest. And while this proved a pretty steady trust to hold, I have enough of that in my main, long-term fund account outside of Freetrade. So decided to bring some excitement to my ‘fun’ portfolio.

I sold at a profit (wouldn’t have sold otherwise) and jumped into Boohoo as soon as the news of their poor working conditions hit. I had a quick look into the fundamentals of the company and saw quite a healthy balance sheet and thought to myself it was probably too big a drop given it’s financials. Also, as bad as this news is for the people involved, when has news like this ever solely brought down a company before? Apple *cough*, Amazon *cough*, Nike *cough*.

I would never usually do something like this but wanted to try my hand at some trading and, after seeing the stock tumble to 228p a share, I sold less than 24 hours later at 279p a share.

One important thing to note: I have not attempted this again. I realised it was an utter gamble and it paid off. Next time, knowing my luck, it won’t do so again.

I reinvested half of this back into Biffa as they’ve showing some encouraging signs of recovery in their dominant Industrial and Commercial sector (back up to 80% of of their pre-Covid level), as businesses slowly return to the offices and shopping outlets.

The other half is sat in cash and I’m eager for Disney to fall again as parks reopen, but I’m still waiting and hoping they fall another £5 before I buy another chunk.

Anyway, enjoy the final month of summer – not that it’s seemed like it recently – and I’ll be back to report next month.

Ciao.

2 thoughts on “Freetrade diary #7 – July

  1. I had a chuckle at your reason for selling TRIG – I continue to hold as I don’t think the current yield of 4.98% is too boring! 🙂 But I guess selling high and then buying low (Boohoo) is more exciting for your fun portfolio!

    My fraction of Tesla hit 100% the other day, so I sold off enough to get my capital back and all that’s left is pure profit.

    Like

    1. Haha, I’m glad…I’m definitely still a fan of TRIG and I think it’ll be a great long-term hold. The things they’re invested in are super interesting and tick the environmentally sustainable box for sure. But yeah it was the one that sadly made way for my Boohoo foray.

      That’s amazing! I’m gutted fractional shares weren’t around sooner so I could get in when it first peaked my interested at around $300. My fault anyway as I considered it at $800 but thought it’s surely not going higher until they start producing more cars and making profit…wrong again – lesson learnt 😛

      Liked by 1 person

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