Today I reinvested the proceeds of my recent sales of Bwin.Party (BPTY).
Hammerson (HMSO) were tipped as Investors Chronicle magazine “Value stock of the year” today (page 20). I fully expected to see that the share price had risen on the news, but shares had actually fallen a little.
Hammerson are a European property firm that invests in and develops shopping centres, retail parks and prime offices through operations in the UK, France and Germany. According to the Share Centre Company Overview “Its portfolio of around 1.2 million m² of retail space and over 260,000 m² of prime offices is valued at around £5.7bn.”
IC cites a share price 30% below net assets and a sound balance sheet among the bull points and they say that while “the company’s portfolio is not likely to show much growth over the next year or two” shareholders can collect a decent dividend yield (forecast dividend yield for 2012 is 4.6%).
I purchased at 360p including stamp duty.
My other purchase today was more Aviva (AV.) shares.
In an article titled “Tips Of The Year – 2011 Review” Investors Chronicle magazine says that Aviva shares are “trading at around half embedded value” while the prospective dividend yield of 9.2% “looks pretty safe”.
I’m already a holder of a Aviva. In fact I have some in the Amateur Investor High Yield Portfolio (HYP) as well as a smaller holding in my general portfolio. As the income from the sale of Bwin sat in my general portfolio, it was to this holding that I added more shares. Today’s purchase at 303p reduced my average buying price from 372.2p to 362.29p. Still around 20% higher than the current market price.
The shares in the HYP (a much larger holding that in the general portfolio) were purchased at an average of 320.8p