Monday, August 31, 2009

Holding Review August 2009

My first review so a little more explanation. I also put the STI ETF as a comparison to the stocks I bought. I chose the ETF since I can easily switch to the ETF if I am sure I cannot do better than the ETF with my own analysis. I will probably continue buying with individual companies for another 5 years, till I am 30 years old, before the decision will occurs.

Comparison:


Note that the STI ETF is exclusive of the dividend payouts so actually the performance of it should be higher. With the huge losses, maybe I should consider getting Protrader for stop orders or track the stock more closely. There are other strategies with warrants which I am not clueless that may helps too. Nevertheless, I prefer to seek prevention, by analyzing and buying the right business, than the cure, of selling when price falls rapidly. Also, when prices fall, I could buy more to reduce the cost of buying too. The concept of dollar cost averaging can reduce the market risk and I wish to employ it on the next company I wish to buy.

Investment SecuritiesPurchase DateAnnualised ReturnSharesBuy PriceValue(+fees)Market Price
Powerplus15-Jan-2008-42.95%32,0000.2156910.250.065
STI ETF15-Jan-2008-14.37%1,9833.476910.252.67
Cacola17-Oct-2008-38.24%11,0000.0951072.280.065
STI ETF17-Oct-200828.81%5022.081072.282.67
Sihuan25-Aug-2009-21.25%10,0000.9559583.470.955
STI ETF25-Aug-200924.51%3,6042.659583.472.67



Review of China Powerplus: My first buy and it has been terrible. Luckily, I only buy shares with money I can afford to lose. I bought it because I like the business of selling small agricultural tools, unlike China Farm. Also, when I bought it, it had around 25% of its price covered with cash and no debts. Its domestic and exports sales have been erratic and unpredicatable. In addition, the Chairman decision to buy China Steel, another company he is related to, have not reap any benefit as yet. Nevertheless, I will still keep it since I have little time for analyzing the business and its competition.

Review of Cacola: With my failure in China Powerplus, I looked carefully before deciding on Cacola Furnitures. It had even more cash compared to its price than Powerplus. Also, the margins give me some confidence to buying it. Nevetheless, I was careful and bought only $1000 since I am not sure of its competition and business environment. I did the review on another blog post in more details.

Review of Sihuan Pharma: Bought it recently but yet to hit its offer price. Did a more detailed blog post with also other previous similar companies with cash offer for comparisons.

Others: Interestingly, KXD Digital, a troubled company I mentioned before, raised capital through diluting its shares and the price had doubled.

Overall: My plan ahead will just be selling Sihuan Pharma when it hit its offer price, and focus on analyzing Cacola and the furntiure sector more. With the 2 furniture IPOs, Latitude Tree and Passion Holdings, it will be easier to find more information about the furniture sector. I rather focus on understanding a sector than think I analyzing many different companies. My purpose for spending time with analyzing is
a) to beat the returns of STI ETF which I will probably buy when I cannot beat it or find better returns elsewhere with as little time in analyzing as possible (time is money since it takes minimal time to buy STI ETF),
b) pickup business skill and knowledge

References:

  1. SGX - KXD Digital Placement Share
  2. Tableizer - tool to convert excel to html table (used to create the table easily)

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