The Feds’ decision to keep interest unchanged in July 2017 is a step in the right direction to quell the possibility of a recession. This means that cheap money is here to stay. By no means this is sustainable because a debt-fueled economic expansion will give way as soon as signs of inability to service debts appear. Do be weary of this.
I’ve made major changes to my portfolio since the last month by adding Evergreen Fibreboard Bhd and selling Maxis Bhd (for a -2% loss), Elsoft Research Bhd (for a 42% gain) and Kronologi Asia Bhd (for a 40% gain) for various reasons including profit-taking and to consolidate my portfolio.
The reasoning behind the purchase of Evergreen is that I’m sold by its turnaround plan which has already been implemented and is currently undergoing commercial operations. As for Elsoft and Kronologi, even though I have offloaded them, I still believe that the fundamentals of both these companies are still very much intact. In fact, Kronologi latest quarterly report showed an increased earnings of 140% than the reported earnings in the corresponding quarter a year ago.
Currently, my portfolio stands as follows:
Airasia Bhd – 17.22% gain
CIMB Group Holdings Bhd – 26.72% gain
Ekovest Bhd- 8.95% loss
Evergreen Fibreboard Bhd – 3.57% gain
Samchem Holding Bhd – 10.70% loss
I’m not too concerned about Ekovest and Samchem. I believe both companies will pose better earnings in the future. In fact, I’m considering purchasing more of Samchem, on a bargain.
In the aggregate, my portfolio advanced 1.5%, from a 23% gain in June 2017 to 24.5% gain, this month.
31 July 2017 is the Evergreen’s ex-date for a 2 cent dividend which is to be paid on 18 August 2017. At an average price of RM0.868 per share, that equates to a dividend yield of 2.3%.
Until next month.
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