Friday 29 December 2017

My Portfolio Nov17

Summary for November 2017

Numbers of stocks 12
Share Sold Jaks @1.47, 1.42 (all)
Share Bought Prolexus @1.15

Overall 2017
Portfolio Return Nov17 -0.45%
KLCI Return Nov17 -1.72%
Portfolio Return YTD17 43.26%
KLCI Return YTD17 4.64%

Stock Portfolio @ End of Nov17

Stocks Avg Oct17 Nov17 Div 17 Nov17% Overall%
BJAUTO 1.92 2.04 2.05 5.9 0.5 6.8
COMPLETE 0.765 0.73 0.73
0.0 -4.6
HEVEA 0.775 1.67 1.28 7.70 -23.3 65.2
INARI 0.33 2.81 3.24 9.6 15.3 881.8
KESM 4.42 16.92 19.48 3.0 15.1 340.7
LATITUD 2.09 4.64 4.22
-9.1 101.9
LEONFB 0.505 0.830 0.810 1.5 -2.4 60.4
MATRIX 1.42 2.25 2.20 13.75 -2.2 54.9
MATRIX-WA n/a 0.360 0.335
-6.9 n/a
NOTION 0.40 0.715 0.495 3.25 -30.8 23.8
PRLEXUS 1.15 n/a 1.010
n/a -12.2
SCIENTEX 2.735 8.90 8.60 6.0 -3.4 214.4

In November, I sold all shares of JAKS for just ~20% gain, and added Prolexus to my portfolio. This seems like a bad decision as JAKS's share price has gone up and Prolexus share price has dropped heavily.

I disposed JAKS because I feel that its risk is too much for me to swallow now. Those who watch JAKS closely might know what I mean.

As for Prolexus, I have been watching this stock for around 2 years and have been patient enough not to buy it at higher price. At RM1.15, I thought it's a good time to buy into its double expansion plans.

Anyway, its share price started to drop sharply just a few days after I bought it, because of the deferment of its Vietnam expansion project.

Should I buy more at such "low" price around 90sen? This level seems attractive but may be I should be more careful as the main reason I bought Prolexus has gone. Even though the fabric mill is expected to start operation next year, its excitement is not so much for me compared to capacity expansion.

Besides, the change in capacity expansion plan might indicate softer demand in near term, and the start-up cost and depreciation of its fabric mill might eat into its profit initially.

Nevertheless, PE wise Prolexus is still rather cheap for me. Hopefully World Cup year in 2018 will increase demand for its products.

In this month, Notion and Hevea fell 30% & 23% respectively. Hevea suffered because of huge drop in its profit. My overall portfolio is supported by KESM and INARI which continue to rise thanks to current semiconductor theme.

Tuesday 5 December 2017

My Portfolio Oct17

Summary for October 2017

Numbers of stocks 12
Share Sold None
Share Bought None

Overall 2017
Portfolio Return Oct17 3.62%
KLCI Return Oct17 -0.44%
Portfolio Return YTD17 41.36%
KLCI Return YTD17 6.47%

Stock Portfolio @ End of Oct17

Stocks Avg Sep17 Oct17 Div 17 Oct17% Overall%
BJAUTO 1.92 2.11 2.04 5.9 -3.3 6.3
COMPLETE 0.765 0.76 0.73
-3.9 -4.6
HEVEA 0.775 1.59 1.67 7.70 6.0 115.5
INARI 0.33 2.54 2.81 9.6 11.7 751.2
JAKS 1.20 1.28 1.48
15.6 23.3
KESM 4.42 16.00 16.92 3.0 5.8 282.8
LATITUD 2.09 4.66 4.64
-0.4 122.0
LEONFB 0.505 0.825 0.830 1.5 0.6 64.4
MATRIX 1.42 2.16 2.25 13.75 5.7 58.5
MATRIX-WA n/a 0.340 0.360
5.9 n/a
NOTION 0.40 1.01 0.715 3.25 -28.5 78.8
SCIENTEX 2.735 8.80 8.90 6.0 1.1 225.4

This is the portfolio for October, not November. Notion nose-dived this month due to a serious fire outbreak in its main factory, which damaged majority of its machines. Today, Notion's share price is only 47sen. Should I sell earlier when the price was above RM1? May be I should...

I did sell half of my Notion shares at 80sen much earlier when its price was on the way up, and the remaining shares are just free shares. I didn't sell all the shares even above RM1, and even after the fire news because I see that Notion has room to grow its business.

I believe that many investors think that Notion is a rubbish company, with all its past history of various funny business ventures and risky hedging. I agree with this totally, the management should focus on what they are good at.

Now it seems that they have learned. They seem to secure new contracts for auto parts and consumer electronic products, and need to build a new plant in Johor. They are doing what they should. This is what I like the most, a potential for growth, even though its financial results are still pretty bad with operating expenses more than its gross profit in its latest FY17Q4 result.

Even though registers loss, operating cash flow is robust thanks to high depreciation charges. This is also one element I like.

Notion's share price might drop further, especially when it announce next quarter's result with huge impairment loss and revenue loss. It seems like I need to hold it for a long time.

Jaks and Inari rise significantly in October, which helps to pull up the overall performance of my portfolio this month.

Year-to-date portfolio gains 41% which is temporary above my target of 30% annually. Hope it will sustain until year end.