It is done.

I bought VIV.PA Vivendi compulsively. Vivenndi is a fast growing global media group which pays 4% dividend yield… And… Now I feel like an on-diet young woman still in front of the fridge aver having eaten a full jar of chocolate ice-cream…

icecream-fridge.jpg

I feel like a compulsive gambler after he has again lost more than he could afford… I feel like a student who was supposed to wake up at 4 am to finish his homework, but then smashed the alarm clock…

I feel like we, the people, all feel every-time we do (again) something we had decided not to do.

Why I should NOT have bought VIV.PA

1) Because my strategy only allows me one purchase worth 1000 every month

2) Because timing could hardly be worse. Stock are shaking, markets are unstable, there is the Yen carry, a possible depression in the US, stock markets are still close to their highs and nobody really knows what was happening last week.

So, why did Buy 35 VIV at Euro 29,34 Each spending a total of Euro 1027?

1) Because Vivendi owns World of Warcraft : In the world of on-line gaming, there is WOW and there is everything else. With 8 million players worldwide, Blizzard (owned by Vivendi) earns about $1.5 billion a year on WoW. A fast growing cash cow which adds easy money to a company that already delivers good earnings.

2) Because today Vivendi announced better than expected 2006 earnings.

3) Because today Vivendi announced better than expected 2007 outlook.

4) Because today Vivendi announced a dividend raise from 1 to 1.2 Euro. now VIV had a 4% dividend yield!

5) Because VIV is in France and  European Economy is in better shape and more stable than US economy.

7 responses to “(VIV.PA) Vivendi: I did it again! Another compulsive stock purchase which I should have avoided:”

  1. len Avatar
    len

    the info background basis of decision shows strong fundamentals.. i guess that from time to time u cannot help but grab the opportunity even if it means tightening ur belt a little. the promise of future high return is so tempting but you have the option to sell some stock to stay within your limits and to be faithful to your rules..good luck!

  2. deminvest Avatar

    Thank you for being so understanding Len… Unfortunately I invest in one stock max EUR 1000. For that amount I have to pay commissions up to EUR 20 per trade.

    To buy and resell I need 2 trades, so I can pay up to 40 EUR (4%) commission. Trading too often or when stocks show small changes could offset my gains.

    I had to set a rule never to sell shares unless they have gone 40% up.

  3. len Avatar
    len

    that’s what i meant. u need to wait to resell when the shares are up. that is ur usual game plan. it will take a while as these are very volatile days especially when u are viewing earnings in the short run.

  4. RandomGoogler Avatar
    RandomGoogler

    Don’t, WoW and Vivendi now owned by Activision. WoW has an expansion pack coming out in 08. They also have a new MMORPG in the works. Things will only look brighter, the video game market is tough, and they are at the top of the game and will be for a few more years.

  5. deminvest Avatar

    I hope that, since Vivendi has bought Activision, profits will grow and my shares, which are stuck since March 2007 will start showing some price growth. It will also depend on Worlds stock markets’ performance.
    We will see…

  6. nicholas Avatar
    nicholas

    blizzard is coming out with diablo 3 another addition to their franchise which i believe is definitely gonna knock their stock prices up

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