We Doubled Down on a Value Stock Today
By Paul Price of Market Shadows
I love bargain prices. We got another chance to pick up shares of Chilean-based pension fund manager PVD this morning and didn’t waste it.
The Virtual Value Portfolio doubled our 42-share position at $78.94, a much lower quote than we paid for our original stake back on Dec. 2, 2013 when we liked PVD at $86.55 per share.
I added 100 shares to my personal holdings today as well.
The company is majority owned by US insurance giant MetLife (MET). I expect that MET will eventually want to buy out the minority holders to simplify their own corporate structure and eliminate expenses.
The $3,315 purchase price will come out of our cash reserve fund.
Market Shadows’ reader Leilei noted that MetLife’s ownership of PVD was above 90% as of Sep. 30, 2013 and is approaching 94% since. MET paid $92.214 per share or $13.20 (+16.7%) above our purchase price today. Any offer to sweep up the remaining shares would probably come at a premium to that.
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