Positions Round Up: February 2019
February 2019 has been a roller coaster. It started off positively as the market all around the world recovered quickly in January from the December bloodbath, and optimism was abound beginning of February. At one point my portfolio had broken even. Yet, it ended at a -2.5% total return on the final trading day of the month.
However, this is still an improvement from end of January (-5.3% total return) or end of December last year (-7.8%).
I've decided (well, for now, before I 'decide' to change again) to build a mixed portfolio consisting of high risk, moderate risk and stable dividend companies at a 4:3:3 ratio. The high risk portion consist of micro/small cap companies as well as young or turnaround companies.
For these high risk companies, the ones that I already have and am considering are:
There are three outperformers: Favelle Favco, Mi Technovation and Sapura Energy. Favelle Favco has finally started to grow after dithering for about 3 months, and is still growing this month. Mi Technovation has always been an outperformer since its IPO. Sapura Energy has also started to appreciate despite being the target of some really negative vibes late last year.
In the following months I will concentrate on purchasing more of the high risk companies, especially those that currently show weakness in its price, for example Kawan Foods:
From what I read, apparently investors have been shying away from the stock as the company seemed to struggle to get the new plant in Pulau Indah going. Yet, the fundamentals seems OK to me. The company is export-oriented, and the CEO is young (presumably energetic) and supported by board members with more experience. The financials in fact just started to improve.
I'm planning to buy more while the price is low, before it starts to break out (it kind of already did today).
I will also buy other strong companies that experience huge dip with no fundamental deterioration, such as Air Asia that has fallen today:
In the incoming months March through April, the dividends announced in February will start dripping into my bank accounts. I will enjoy those and continue monitor the market for any buying opportunity.
Till then, stay knowledgable, stay invested.
However, this is still an improvement from end of January (-5.3% total return) or end of December last year (-7.8%).
I've decided (well, for now, before I 'decide' to change again) to build a mixed portfolio consisting of high risk, moderate risk and stable dividend companies at a 4:3:3 ratio. The high risk portion consist of micro/small cap companies as well as young or turnaround companies.
For these high risk companies, the ones that I already have and am considering are:
- micro/small cap companies
- Kawan Foods
- WellCall
- Kelington
- young companies
- Mi Technovation
- turnaround companies
- FGV
- Sapura Energy
For these companies, I expect little to no dividends. I also expect some of them to fail miserably. On the other hand, the ones that succeed will give me really handsome return in the long run. Currently it accounts for 14% of the portfolio, still far off from my target of 40%.
For moderate risk with growth property companies, I already have Bursa Malaysia, MyEG, Inari and Hartalega, and they account for 42% of the portfolio. I expect to sell into strength some of these at the end of the year as I expect them to grow rather quickly.
I'm targeting a ratio of 40:30:30 for very high risk companies:growth companies:dividend companies. Currently the portion for the very high risk (Mi Technovation, Kawan Foods and Sapura Energy) is still too small.
For dividend stocks, I already have Favelle Favco, Mah Sing, Tenaga and Sime Darby. I will definitely hold on to Favelle Favco, but I can't say yet whether I'll do the same with the other three stocks.
Performance wise, this is how each of the counters perform in terms of their capital appreciation/loss:
Favelle Favco and Sapura has started gaining momentum. Mi Technovation is staying the course. The rest are still dithering or worse, still in the red.
There are three outperformers: Favelle Favco, Mi Technovation and Sapura Energy. Favelle Favco has finally started to grow after dithering for about 3 months, and is still growing this month. Mi Technovation has always been an outperformer since its IPO. Sapura Energy has also started to appreciate despite being the target of some really negative vibes late last year.
In the following months I will concentrate on purchasing more of the high risk companies, especially those that currently show weakness in its price, for example Kawan Foods:
Kawan Foods stock price is the lowest in almost 4 years. Looking at the volume, the stock has gone off radar from the traders and investors since middle last year.
From what I read, apparently investors have been shying away from the stock as the company seemed to struggle to get the new plant in Pulau Indah going. Yet, the fundamentals seems OK to me. The company is export-oriented, and the CEO is young (presumably energetic) and supported by board members with more experience. The financials in fact just started to improve.
I'm planning to buy more while the price is low, before it starts to break out (it kind of already did today).
I will also buy other strong companies that experience huge dip with no fundamental deterioration, such as Air Asia that has fallen today:
Huge sell off today due to dismal quarterly financial results announced. Despite announcing dividend of 12 sen, which translate to ~4% at current price, investors abandoned the stock en masse.
I will monitor Air Asia for the following 2-3 trading days before start buying. Previously, I have gained about 16% from this counter before exiting completely.
In the incoming months March through April, the dividends announced in February will start dripping into my bank accounts. I will enjoy those and continue monitor the market for any buying opportunity.
Till then, stay knowledgable, stay invested.
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