Positions Round Up: May 2019

I have disposed several holdings in April and May, and added 1 new position.

I have disposed Tenaga Nasional, Mah Sing, Sime Darby, Bursa Malaysia, Inari (all here with loss of capital), and Hartalega (gain of capital). In the meantime, I have subscribed to IPO for Leong Hup.

My portfolio is currently at -5.24% loss, with my cash position at 17.21%.

As of end of May 2019, this is how my portfolio look like:

My previous investment strategy was to have 40% micro/small caps + turnaround companies, 30% growth companies, and 30% dividend companies.

Currently:

• micro/small caps + turnaround companies are Sapura Energy (14%), Kawan Food (17%) and Mi Technovation, making up 43%
• growth companies are Leong Hup (18%) and MyEG (10%), making up 28%
• dividend companies are Favelle Favco (12%) and Air Asia (16%), making up 28%

Performance-wise, this is how they're doing:

Favelle Favco has maintained a strong performance, driven by a great financials for 2 consecutive quarters. They announced a 5.7% dividend (at my purchase price). Air Asia meanwhile has staged a late rally as they announced a 90sen (!!!) dividend this week. MyEG meanwhile has dithered and might present buying opportunity soon. Leong Hup was IPOed at RM1.10, yet struggling to maintain its price and have been supported by Maybank Investment bank to stabilize its price for several consecutive days. For Mi Technovation, I have added some more position there as the price has weakened. Amazingly, the company has initiated share buyback around that time, and the CEO and another board members were mopping up the shares as well. Finally, Kawan Food and Sapura Energy has been declining slowly. I would not add any more positions here.

Instead, I plan to add more MyEG, and maybe Petronas Chemical (dividend companies), given their price weakness. As I see that the economy around the world is already in the late cycle, I am also considering small-cap REITs, Hektar REIT and KIP REIT, as they both potentially pay ~7% in dividends.

Next week will be Raya Aidilfitri week so the market will be slightly muted. I will monitor the macro and microeconomic conditions for now, as it is especially rather tricky as the economy has been showing many signs of slowing down.

Till then, stay informed and invested.