Friday, June 24, 2005
Stocks Portfolio
Warning : Do not follow what I do blindly. Each of us has a different risk profile at different stages of life and has different amount of money which we are willing to commit for investments. You'll have to find and fine-tune your own investment strategies. I will not be responsible for any profits or losses you may incur.
My Portfolio
The table below shows price data of some of the stocks I am monitoring,
Stocks | This Wk | Last Wk | Last Mth | Last 3Mth | Last 1Yr | Tgt Buy | Tgt Sell | Ave Cost | Portfolio (Cost) |
|---|---|---|---|---|---|---|---|---|---|
SPH | 4.30-4.38 | 4.30-4.36 | 4.22-4.56 | 4.22-4.90 | 4.22-4.90 | 4.28 | 4.48 | 4.38 | 20.96% |
SingTel | 2.61-2.67 | 2.61-2.65 | 2.56-2.67 | 2.33-2.67 | 2.33-2.83 | 2.48 | No | No | 0% |
Suntec | 1.08-1.10 | 1.07-1.09 | 1.07-1.10 | 1.03-1.15 | 1.03-1.32 | 1.05 | 1.20 | 1.185 | 17.40% |
GTC | 0.26-0.305 | 0.26-0.265 | 0.255-0.305 | 0.20-0.305 | 0.20-0.305 | 0.25 | 0.31 | 0.275 | 11.69% |
Metro | 0.76-0.83 | 0.755-0.80 | 0.70-0.83 | 0.575-0.83 | 0.455-0.83 | 0.70 | No | No | 0% |
Thomson Med | 0.22-0.225 | 0.215-0.24 | 0.215-0.24 | 0.21-0.24 | 0.165-0.24 | 0.21 | 0.28 | 0.187 | 16.79% |
K1 Ventures | 0.33-0.34 | 0.325 | 0.32-0.34 | 0.31-0.37 | 0.245-0.37 | 0.315 | 0.365 | 0.356 | 4.13% |
SP AusNet | 1.62-1.64 | 1.63-1.65 | 1.62-1.66 | 1.62-1.66 | 1.62-1.66 | 1.58 | 1.70 | 1.687 | 11.73% |
PBankF | 6.35-6.50 | 6.35-6.40 | 6.10-6.40 | 6.10-6.95 | 6.10-8.15 | 6.30 | 6.95 | 6.82 | 17.30% |
Last Updated : 6-Jan-06
Note : The data will be updated only when I am free, likely every quarter
Stocks Selection
Most of my stocks will have strong fundamentals, using the methods described by Warren Buffett to select. I will also look for stocks with good dividend yield or High discount to NAV. My current portfolio comprises of the fllwg stocks,
- Good Dividend Yield - SPH, PBankF, SPAusNet
- REIT - Suntec
- High Discount to NAV with Low Debts - K1 (but latest Q result shows NTA is much lower than NAV)
- Potential Growth - Thomson Medical, GTC
For REIT, the yield is now 4.4-5.8% vs risk-free rate of abt 3+%. The gap is now 1-2.5% and I'd reduced my REIT hldgs.
When to Buy / Sell
I don't really know anything about TA (technical analysis) but I'll still look at the price movement and relate the dips and peaks to any market news. I'll buy if I find the price has dropped and there has been no change in the fundamentals or if the market has over-reacted to bad news. Similarly, I'll sell if the price has gone up too much in relation to any good news, especially those of a speculative or long term nature.
Typically, my first buy will be meant for long term hold. With this "beach-head", subsequent buys are for shorter term; I'll even contra if the opportunity arises. But, I'm also prepared to be "stucked" with the subsequent buys as I'd done my homework and am happy with the fundamentals. I may do up to 4-5 buys esp. if the price drops. Similarly, I sell in stages, so the Target Sell Price may even be lower than my highest buy price.
As I'd done my studies and concluded the stocks to be fundamentally sound, I don't worry too much that I'll be throwing good money after bad money. Instead, I like to think I'm buying on weakness and selling on strength. So, unless the fundamentals have changed, I'll continue to hold on to those stocks.
Accounting Recognition
In the short term, my buys are recognised as individual transactions. At the end of the year, all buys of the same stock will be combined, the average price computed and thence recognised as a single transaction. Not GAAP, I think :D
Other Stocks
The above portfolio does not include stocks which were bought long ago when I used to buy many of my stocks based on others' recommendations and also apply for just any IPOs. All are underwater now and some are to me 'junk'. I classify them as,
- Question Mark- Raffles Medical, Transview, CH Offshore, Stamford Land
- Junk - AFP, Goldtron, IPC, ITG, MediaStream, Acma
Over the next few weeks, I'll spend time to study those in the 'Question Mark' category so that I can make a decision whether to dispose or add to my portfolio. The ones in the 'Junk' category, I'll continue to hold it as a reminder to me of my early follies. Hopefully, I'll not be adding any more of my stocks to this category :D
