Friday 17 January 2020

Year 2019 Review: Crawling Back

In early 2019, O&G sector seems to gain more attention. If I remember correctly, at that time Cold Eye wrote some articles encouraging investors to look into O&G stocks after being depressed for so long.

Though I didn't read a lot at that time, somehow I came across those articles and I agreed with him. So it brought back a bit of my desire to study and buy something in stock market.

I went through some of the O&G companies and short-listed 3 of them as potential buy: Armada, Dayang & Hibiscus.

During CNY gathering with friends, inevitably our conversation will touch a bit on stock market. When I mentioned about O&G stocks, most were not that interested.

Out of the 3 aforementioned O&G stocks, I actually bought one of them, you guess what, it's Hibiscus... sigh...

I bought Hibiscus mainly because I saw its cost per barrel of oil is so low below USD20, seems to have a good management team and debt free some more. At the same time I was worried about the debts of Armada & Dayang.

So there goes a chance to start 2019 with a bang...

Share price of Dayang at that time was around 70-80sen, now everyone knows that it is about RM2.60 after a famous investor goes onboard.

My Hibiscus shares were bought at RM1.05, so now at around 95sen it's suffering from paper loss.

Apart from Hibiscus, I did add 3 other new stocks in the first half of 2019, and another one towards the end of 2019.

Not long after CNY, after feeling bullish on the demand of those 7nm thing, I added Frontken into my portfolio at 96sen. This proves to be a good move.

Almost at the same time, I purchased DKSH after it has dropped so much from above RM4 probably because it raised a lot of debts to buy "SCS butter".

Personally I like this acquisition long term wise, so I just jumped in at RM2.50.

In May19, some packaging companies started to catch my attention. I tried to choose between Master-Pack & Public Packages. Finally I picked PPHB... may be I should get both...

At that time Master share price has started to move but still at around 80sen, now it is around RM2.50. Missed it just like Dayang.

My purchase price for PPHB is 56.5sen, so currently at RM1.22 it still breaks the 100% gain mark. A consolation prize.

Revenue Group was in my radar when news broke out that it is partnering with Lazada in July19. I observed it for some time and had a chance to grab it at RM1.50.

However, its PE ratio is uncomfortable to me, and I planned to wait until Q4 results. The Q4 result was good and later it declared bonus issue, so the share price shot up higher and I could only wave goodbye to it.

After missing out on Revenue, I manage to spot Kronologi Asia in Dec19 and decided to add it into my portfolio at 76sen.

Besides buying, I cleared all shares of Hevea, Complete & KESM in the first half of 2019, and sold some Inari shares in Oct 2019.

Hevea is a sad story for me. I bought its share in May15 at RM3.10 (adjusted to 77.5sen). Its share price went up to almost RM1.80 in 2016 & 2017 before I finally sold all in Mac19 at below my entry price at 65sen.

Wow, a 130% gain turned into loss just like that.

However, because of good dividends given out by Hevea throughout those 4 years, my investment in Hevea still generates 10% return.

On the same day I sold all Hevea shares, I also "reluctantly" sold all my remaining KESM shares at RM8.50. As my average entry price is RM4.42, and I sold some shares before at RM20, KESM has given me my best realized gain so far at 210%.

Complete Logistic which I bought at 76.5sen, is another stock that I sold all in 2 transaction. I sold half at RM1.18 in Feb17 and finally cleared all in May19 at 76sen. This translates into a gain of 27%.

You know what, within 2 months after I sold all Complete shares, the company unexpectedly announced an incredible 16sen of dividend! What the XX

When Inari staged a brief rally in Oct19, I sold some at RM2.02. This is the fourth time I sold Inari shares since acquiring them in mid 2013.

For my existing stocks, Latitude, Leonfb & Daya continue to decline in 2019 while Notion, Prolexus & Stock X registered good gain.

If I did almost nothing in 2019 like 2018, my portfolio performance might be flat or even may be in loss. Frontken & PPHB have certainly contributed to an overall positive return of 26.8% in year 2019.

I feel that this result is nothing to shout about since there are so so many stocks that go up so much in 2019.

That's my story in stock market in year 2019. I have too many stocks at this moment, 15 in total! My target is to have 8-10 stocks and this year should be the year to clean my portfolio.

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