My Journey

September 2017 Portfolio Report

Dear Readers

Did we just escaped an all out nuclear calamity by the skin of our teeth? It sure did seem like it.

Although the world has moved on from the peak of the rhetorics between the Delusional Mr President and Little Rocket Man, the effect of such a threat is still lingering in the market to the extent that money is being reaped off from the equity market to be sown in gold, Yen and bonds (traditionally safe haven investments in anxious times).

down-chart-stock

Aggravating the already dire situation was the Fed’s indication that it will raise interest rate in December 2017. Since such announcement, the Greenback has been strengthening and an outflow of foreign funds, from the Malaysian equity market, is gaining prominence. The effect of which meant Bursa went into consolidation mode thus reinforcing September’s notoriety as consistently the worst performing month for Malaysian equities for some time now. It is currently on a 7-8 days bear streak with no light at the end of the tunnel just yet.

Considering everything that has happened, my portfolio remains resilient. In fact it gained 1.5%, down from a gain of 3%, right after the nuclear war rhetorics between North Korea and the USA.

The star performer was the shares of Samchem which rallied quite a bit (about 20%) bringing it back to the black. I disposed half of my holdings at RM0.995 making a tidy profit and channeled that profit to purchase more of blue chip stocks such as CIMB which experienced a gap down.

COUNTER COMPOSITION (%) AVERAGE PRICE LAST PRICE GAIN/LOST (%)
3A 6.45 1.18 1.14 -3.62
AIRASIA 28.40 2.80 3.45 23.30
CIMB 22.06 5.53 6.30 13.77
DNEX-WD 5.40 0.245 0.215 -12.45
EKOVEST 11.00 1.22 1.09 -11.00
EVERGREEN 7.20 0.84 0.79 -6.00
SAMCHEM 9.00 0.945 0.955 1.05%

I am upbeat about the dividend payments from AIRASIA, SAMCHEM and CIMB in October and November 2017. In all, my portfolio has achieved a 25.77% gain this year, inching ever closer to the 30% mark. Cash is at ~10% of portfolio.

Lets see what October has in store for us.

How well did your portfolio brave the bear of September? Do drop a comment.

If you find this write-up an enjoyable read, please hit that like and share buttons on my Facebook for more updates and analysis.

Reference

  1. https://www.cnbc.com/2017/09/25/we-have-right-to-shoot-down-strategic-us-bombers-even-if-they-are-not-in-north-korean-airspace-nk-foreign-minister-says.html
  2. https://www.nytimes.com/2017/09/20/business/economy/fed-bond-buying.html?mcubz=3
  3. http://www.thestar.com.my/business/business-news/2017/09/29/klci-ends-september-on-downbeat-note/
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My Journey

August 2017 Report Card

Dear Readers

With the end of August, comes September,which has always been a notoriously dreadful month for Malaysian equity.

There is always a silver lining even in a pessimistic month like September. However, to take advantage of the impending bargains, I suggest that you keep some cash lying around. About 19% of my portfolio is in cash at the moment – ready to pounce at a moment’s notice.

Bruce Plante Cartoon: The Stock Market
Credit: Bruce Plante Cartoon
What’s new?

I’ve added DNEX-WD (warrant) into my portfolio when the market was frantically disposing DNEX’s shares because of its lacklustre earnings, last quarter.

A couple of counters announced the distribution of dividends: Samchem @ 1 cents per share (30 Aug) and Airasia @ 12 cents per share (5 Sept). Rest assured, the dividends will be reinvested.

Presently, my portfolio consists of the following counters:

Airasia Bhd – 21.25% gain

CIMB Group Holdings Bhd – 31.88% gain

Dagang Nexchange Bhd WD (warrant) – 12.45% loss

Ekovest Bhd- 6.49% loss

Evergreen Fibreboard Bhd – 4.72% loss

Samchem Holding Bhd – 13.13% loss

The portfolio, despite of the losses suffered by 4 out of 6 counters, only retreated 0.3% to a 24.2% gain. You may compare August’s performance with July’s performance.

Until next time. Happy investing.

If you find this write-up helpful, please hit that like and share buttons on my Facebook for more updates and analysis.

My Journey

July 2017 Report Card

Dear Readers

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.

market-roller-coaster
Courtesy of fxempire

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.

If you find this write-up helpful, please hit that like and share buttons on my Facebook for more updates and analysis.

My Journey

June 2017 Report Card

Dear Readers

This month’s portfolio does not differ much from last month’s except for the addition of Samchem Holdings Bhd (“Samchem“), purchased at a premium of RM1.002 per share, and Maxis Berhad (“Maxis“) which was purchased on 30 June 2017.

The purchase of shares in Samchem and Maxis is an attempt to diversity my portfolio with less volatile counters.

AR-170629984
Salvaged most of the losses in May

A mistake may have been made with Samchem. My indicative fair value for Samchem would be about RM0.80 to RM0.85, according to my calculations which I had before I wrote Analysis of Samchem. Instead of being vigilant, I let my lackadaisical discipline, coupled with the fear of missing out on an uptrend, get the better of me. So like any other idiot, those shares were bought, at the peak, and has since retreated a bit.

As at 30 June 2017:

Airasia – 18.3% gain

CIMB – 34.5% gain

Ekovest – 3.4% loss

Elsoft – 35.9% gain

Krono – 35% gain

Maxis – 0.9% loss

Samchem – 8.7% loss

In spite of that, the portfolio’s return of investment is about 23%, partly contributed by the dilution of returns from the injection of additional funds last month. Overall, June has turned out to be a better month than May, if I may say so myself.

Thank you for reading.

My Journey

May 2017 Share Portfolio

Dear Readers

We saw a bit of turbulence in the Bursa in April 2017. Wall Street had certainly overreacted to the possibility of an nuclear war between the United States of America and North Korea. That fear crept into Bursa too.

North_Korea_Nukes.width-1024
If you hadn’t paid too much attention to the missile, you’d probably noticed that there are 16 wheels on this truck. That’s a lot of wheels.

Whilst many bought into the possibility of a doomsday scenario, cool-headed investors made the most of the unnerved market.

As stated in my article, Analysis of Elsoft Research Bhd, i would continue to accumulate shares of Elsoft Research Bhd. The scare of a nuclear annihilation created an opportunity for me to get in the market, at a bargain. Needless to say, I seized that opportunity and  increased my stake in Elsoft Research Bhd when its shares took a beating from a high of RM2.230 (11 April 2017) to a low of RM1.936 (14 April 2017). I bought in @ RM1.96. That’s a discount of about 12%.

I’ve also sold the entirety of my stake in Sapura Energy Bhd for a meager profit of 10% (excluding the meager dividend). I felt that the dynamics of the oil and gas market was impeding any meaningful yield in Sapura Energy Bhd. The profit and the capital from the said sale would serve me better through a stake in Kronologi Asia Bhd, which is making a strong presence in India with and South East Asia.

To conclude, my portfolio currently looks like this:

NO. COUNTER COMPOSITION (%) AVERAGE PRICE LAST PRICE GAIN/LOSS (%)
1. AFFIN 11.66 2.654 2.93 10.39
2. AIRASIA 29.93 2.694 3.35 24.33
3. CIMB 15.23 4.896 5.74 17.23
4. ELSOFT 23.88 1.737 2.25 29.50
5. KRONO 15.28 0.399 0.48 20.26

Cash reserve is at its lowest level, at 4.01%.

There is a lot of euphoria in the market; enough to attract the bear the lurking bear. Keep that in mind.

My Journey

April 2017 Share Portfolio

 

Dear Readers,

It is always good to know about yourself before starting on an investing journey. As for me, my attributes are:

  1. I would class myself as a somewhat medium to high risk investor.
  2. I subscribe to the principles of value investing with minor tweaks of my own.
  3. I buy to hold and will only sell when the opportunity arises.
  4. I am poorly disciplined, unfortunately.

Investing is very personalised. What may have worked for me might not work for you. Therefore it is prudent that you plan an investment strategy which suits you. I don’t mind if you take pointers from this site but don’t treat them as a recommendation.

Lets get the ball rolling with the introduction of my share portfolio. It will be updated periodically.

NO. COUNTER COMPOSITION (%) AVERAGE PRICE LAST PRICE GAIN/LOSS (%)
1. AFFIN 12.53 2.65 2.88 8.51
2. AIRASIA 29.39 2.69 3.01 11.71
3. CIMB 15.84 4.87 5.46 11.51
4. ELSORT 18.45 1.66 2.12 27.60
5. SENERGY 10.05 1.79 2.00 11.40

The remaining 13.7% of my portfolio is in cash.

All of the companies above declared dividends in the last quarter. Below are the dividends for your reference.

NO. COUNTER DIVIDEND PER SHARE
1. AFFIN RM0.045
2. AIRASIA RM0.12
3. CIMB RM0.12
4. ELSORT RM0.04
5. SENERGY RM0.01

It should be noted that some counters, such as CIMB and AFFIN, offer a dividend investment scheme (“DRS“) to members.

Dividend Investment Scheme

Coincidentally, I’ve just received a CIMB DRS form along with a CIMB annual report.

20170408_154405
CIMB: We have your interest at heart. Instead of hiring proper models, we got our bank tellers, with really poor eye-coordination, to model the front page of our Annual Report.

Members may elect to reinvest the dividends in would-be newly allotted shares for a discount. According to the DRS form:

The Issue Price of RM4.74 per CIMB Share represents a discount of approximately ten percent (10%) to the theoretical ex-dividend price of RM5.26 per CIMB Share, which was arrived at after taking into consideration the five (5)-market day VWAMP up to and including 15 March 2017, being the last trading day prior to the Price Fixing Date of RM5.38 per CIMB Share and the dividend per share of 12.00 sen per CIMB share.

I intend to exercise the option to reinvest. Why? It’s a no-brainer!

Since 15 March 2017, the price of a CIMB share has increased to RM5.46. Exercising the option to reinvest now represents a 12.8% discount! Not bad at all.

  • RM5.46 – RM4.76 = 0.70
  • RM0.70 ÷ RM5.46 x 100%
  • 12.8%

Other than providing a bang for your buck, DRS also helps to compound your returns over time. As a long term investor, these are the qualities which I need for my portfolio to grow.

Are there any other companies offering a Dividend Reinvestment Scheme? Do share.