My Portfolio Jun23

 Summary For June 2023

Portfolio @ End of Jun23

My portfolio is rather flat in Jun23 with a marginal gain of 0.3%. Overall YTD still manage to stay in the positive territory of 3.1%.

T7Global started to make some move this month with a sudden surge from 41.5sen to 47.5sen in mid June, only to retreat to 44.5sen at the end of Jun23.

Gtronic made good progress as well with a 6.8% gain in the month.

However, MFCB dropped by as much as 7.0% in June which was somewhat unexpected to me. 

I thought MFCB's share price should be as steady as rock even if growth might be slow. It has dropped from RM3.60 to almost RM3.00 since earlier this year.

My Portfolio Mac23

 My Portfolio @ Mac23

Portfolio @ End of Mac23

In March 2023, KLCI dropped another 2%, perhaps due to jittery atmosphere caused by bank failure in the US.

My portfolio could not escape the negative sentiment and retreated 1.3% this month, bringing the first quarter return down to 5.9%.

The biggest casualty in Mac23 was myNews which fell 19.4% in the month especially after it released its FY23Q1 result.

The loss-making result of myNews is somewhat expected but it seems like most investors were very disappointed with this set of result.

I sold part of my myNews shares just before it released its result, as I strongly felt that its share price would surely dive after the result was out.

I didn't sell all shares as I still hope for a miracle like most shareholders.

My Portfolio Sep22

 Summary For September 2022

Portfolio @ End of Sep22

The month of September is not a good month for stock market after a brief rebound in August. KLCI tumbled 7.8%, exactly the same as the performance of my portfolio in Sep22.

The worst performer is Hibiscus, which fell 21% in one month, followed by Maybulk, Krono, JHM & LeeSK which suffered more than 10% loss.

Overall year-to-date, accumulated loss since the start of the year has reached 20% for the first time.

Three companies in my portfolio announced their quarter results in September.

Krono's FY23Q2's result (PAT RM3.1mil, EPS 0.44) is not within my expectation, but not too bad either. Net profit increased 40% QoQ but dropped 40% YoY.

However, YoY, the EBIDTA in this quarter was comparable at RM10.5mil. The net profit was mainly dragged down by 30% higher depreciation charge.

Contribution from EDM infrastructure technology segment is still weak in the first half of FY23. Whether it can play catch up in the remainder of FY23 remains to be seen.

My Portfolio Jun22

 

In Jun22, things go from bad to worse as KLCI plummeted 8%.

My portfolio inevitably performed badly as it shrank 10.7% in this month alone, bringing the year-to-date loss to 18.4%.

Currently the world is still overshadowed by inflation with the recession risk looming.

Year-to-date, Nasdaq index already lost 30%, while S&P 500 and DJI retreated 20% & 15% respectively.

It seems like we are already in a small bear market.

KLCI lost "just" 7.9% so far this year. The reason is because it has never really gone up in the past 4-5 years or so.

If we are going to witness a real economy recession soon, KLCI still has much room to fall from current level of 1,450 points.

My Portfolio Dec21

 

Summary For December 2021

Portfolio @ End of Dec21

Finally a difficult year 2021 was over. My portfolio was flat in December and ended the year with a small gain of 2.32%.

This result is almost similar to year 2016 when my portfolio registered a 3.2% loss but I felt that 2021 was worse than 2016.

This is because I started year 2016 badly with a 10% loss in the first month. However, it improved from the second half and ended the year with the least loss.

In 2021, it was the opposite of 2016 as my portfolio started the year with a bang with 35% gain in the first month only to see the gain evaporated to just 2.3% by the end of the year.

Generally I feel relieved that I'm still able to stay in positive territory in year 2021 but at the same time also feel disappointed.

Last month was a "buy" month in which I bought in 4 companies' shares but this month is a "sell" month in which I sold the shares of 4 other companies.

With this move, I have reduced the total number of stocks in my portfolio to 14. There are still 4 stocks that I planned earlier to dispose in year 2021 but failed to do so.

My Portfolio Sep21

 

Summary For September 2021

My Portfolio @ End of Sep21

The performance of the stocks in my portfolio in September is mixed, with nine gains and nine losses.

Overall my portfolio lost 1.2% in this month.

The worst performer is Supermax which suffered a 27.5% drop. I didn't follow its share price closely and was actually quite shocked to realize how low it has gone.

Nevertheless Supermax has a 15-sen dividend ex-ed in Sep21.

Even though I don't have a lot of Supermax shares, it's still a disappointment to me. 

On the other hand, the best performer is DKSH which gains 19% but I also do not own a lot of its shares.

My Portfolio Jun21

 

Summary For Jun21

Stock Portfolio @ End of Jun21

My Portfolio registered 5.3% loss in the month of June, mainly "contributed" by the huge drop in SCIB, SCIB-WB, and to some extent, JAKS.

Overall year-to-date return has dropped to merely 2.3%.

I have sold part of SCIB's shares again this month at 77.5sen. Initially I planned to sell all of its shares and warrants to wrap up my investment in it, but last minute I changed my mind and sold only half of the remaining mother shares.

However, its share price continue to drop to 50sen, below my average price of 54.5sen

Anyway, SCIB has finally released its FY21Q1 result which was a bit of relief to me even though the result was slightly below my expectation.

So far there is still no mention of any accounting issue by its external auditor KPMG.

Krono: Eyes On China

Krono is involved in Enterprise Data Management (EDM) business providing hardware & software solutions to enterprises for data storage & protection as well as EDM managed services.

Before this, Krono has a small presence in China through a 16.67%-owned Quantum China Ltd (QCL). Now it has proposed to acquire the remaining 83.33% of QCL for RM150mil.

Half of the amount will be paid by cash (RM75mil) and the other half will be paid by issuing 110.3mil new Krono shares at 68sen each.

This is the main reason Krono carried out private placement recently by issuing 104.67mil new shares at 66.23sen each to raise RM69.3mil.

So, a total of 215mil new Krono shares are to be issued to fund this acquisition. 

Should existing shareholders of Krono be happy or worry?

My Portfolio Mac21

Summary for March 2021

Portfolio @ End of Mac21

In general, March 2021 is not a good month in stock market. My portfolio lost 7.1%, mainly due to the decline of my major holdings SCIB & Jaks.

Taking some profit from SCIB earlier in the month helps to reduce the percentage of loss.

I still hold quite a lot of SCIB shares. I believe the company can continue to grow in 2021 and hope that it can achieve its RM2bil market cap target by the end of this year.

Jaks just released a bad quarter result with a shocking RM103mil loss after tax and minority interest in its FY20Q4. Its loss before tax for the quarter is RM183.5mil.

However, there are reversal of disposal gain (RM85.3mil), impairment loss of goodwill (RM52mil) & receivables (RM23.6mil), share grant plan expenses (RM17.1mil) and loss on disposal of investment properties (RM5mil) in this quarter alone.

After deducting all those bigger items above, its actual loss before tax is just RM0.5mil in the quarter which is not too bad.

My Portfolio Oct20

 Summary for October 2020

Portfolio @ End of Oct20

This October was not a good month for stock market as KLCI retreated 2.5%. Overall my portfolio registers a small gain of 1.2%, thanks to Prolexus, Scientex & Supermax.

I did not have any intention to buy stocks in October as I planned to wait until after the US election to have a clearer picture. 

However, I added my position in Jaks a trading day before the ex-date of its rights issue. I didn't sell any shares since none reaches my target price.

I always have a plan in mind to top up Jaks either before or after the rights issue. I regretted that I missed the chance to do so when its share price was below 80sen not too long ago. 

Tech Stocks: Still Can Buy Now?

Apart from glove stocks, I think technology stocks are the best performers so far in our stock market. Most of them are close to or even break their previous high set before Covid-19.

This is certainly helped by Nasdaq Composite Index which achieves record high and currently stays in that territory of above 10,000.

Before MCO, I already thought that tech stocks were not cheap. At this moment, of course they are not cheap to me.

They were cheap only in the second half of Mac20 but I failed to grab them.

However, I wish to find out which tech stocks are "relatively cheaper". So I compare their current price with their previous 52-week high before Covid-19.

I just use the simplest PE ratio to compare. If the latest quarterly result is negatively affected by Covid-19, I will not include it in the EPS. I will use the best 4 of the last 5 quarters instead.

	Best 4Q	Pre-Covid	Post-Covid	Current	PE
	EPS	High	High	Price
GTRONIC	7.85	2.44	2.50	2.37	30.2
INARI	5.07	2.09	1.91	1.85	36.5
FRONTKEN	6.76	3.06	3.06	2.82	41.7
MPI	58.9	12.96	12.16	11.98	20.3
UNISEM	-1.31	2.93	2.54	2.44
JHM	5.46	1.78	1.68	1.68	30.8
D&O	2.8	0.925	0.86	0.83	29.6
KESM	22.2	12.00	8.86	8.45	38.1
FPGROUP	2.94	1.01	0.875	0.855	29.1
AEMULUS	-1.14	0.325	0.355	0.315
MI	7.58	3.11	3.33	3.33	43.9
PENTA	17.48	5.58	5.87	5.80	33.2
DUFU	21.4	5.3	5.87	5.78	27.0
NOTION	7.29	0.92	0.915	0.715	9.8
JCY	-0.94	0.365	0.39	0.36
GREATEC	10.05	4.05	4.99	4.79	47.7
UWC	8.94	3.39	4.33	4.21	47.1
VITROX	18.45	9.57	10.46	10.24	55.5
SAM	64.6	8.64	8.23	8.00	12.4
REVENUE	2.76	1.53	1.31	1.22	44.2
DSONIC	4.42	1.69	1.67	1.46	33.0
MYEG	7.1	1.7	1.61	1.51	21.3
KRONO	4.16	0.96	0.68	0.555	13.3
K1	0.86	0.245	0.595	0.425	49.4
GPACKET	-4.8	0.935	1.65	0.66

This is not an exhaustive list of all technology-related stocks listed in Bursa Malaysia. Some may not be real tech stocks.

Stocks in red represent those which have already exceeded their previous high before Covid-19. About half of them have achieved this feat and this just shows how hot the tech stocks are now.

For others, it looks like they are not far away and are on the way to break their previous pre-Covid high except Krono, Notion, Revenue, KESM & Unisem which have more than 20% to go.

We can see that most tech stocks have a PE ratio of around 30 and above now. There are quite a few of them with PE around 50.

Those "relatively cheaper" ones by PE ratio include MPI, Notion, SAM, MYEG & Krono.

MYEG is not really a tech stock and recently market seems to give it a PE of around 20.

There are quite a lot of one-off gains in Notion's EPS so it's not really cheap until we have a glimpse of the profit contribution of its new projects soon.

SAM looks really cheap, may be because of its aerospace business which is expected to go downhill in the near future even though its equipment segment is growing quite well.

Krono has been largely affected by its huge impairment loss in its latest quarter. Its ability to recover its core business in a short period of time is in doubt. If it's able to turn profitable next quarter, then I think its share price will rise.

K1 and GPacket have cloud related business like Krono. However, recently both seem to be under "goreng mode".

MPI is well established with lots of cash. Market doesn't seem to give it a higher PE like others and I'm not sure why as I don't know much about this company. Perhaps it is already stable and lack growth potential?

Of course we can't buy or sell base on PE ratio alone. A stock with PE of 40 may have a PE of only 20 one year later if it grows and doubles its profit.

As almost all the good tech stocks have high PE now, I think investors should either wait for a major price correction or invest in those which have great growth potential.