Investors who said hello to Valuetronics, AEM and other popular tech sectors recently would see their eggs royally smashed.
The proposed tariffs brought about by Trump on China and the latter's counter-measures sunk the HKEX market pretty bad yesterday. HSI closed at -2.7%.
Two of my stocks, Perfect Shape (PS) and Xing Hua Port Holdings (XHP), were down by almost 5% and 7% intra-day respectively. It was a pretty sad sight but I am not affected because it wasn't because my stock picking has failed me.
There were no issues with the companies behind the stock.
Current returns stayed at 9.19%, which means I am about 10% better than both markets, which is highly satisfactory given my limited ability.
PS remains the biggest position in my little portfolio. Earnings will be released next week. I expect the market to price this company in pretty volatile fashion.
RHT Health Trust's fate is intertwined with Fortis, which is still in the midst of getting its financial statements and buy-out (of RHT) sorted. Eventually the deal should be realized. In view of the risk, this arbitrage is my second biggest position. Usually I would put in quite a bit of money in merger deals, but there is a slight risk here. As long as there is value in RHT, there shouldn't be cause to worry. Sure, the price will plunge should the deal falls through, but the value will still be there.
XHP is pure bad news but I do not believe the odds are poor for the next 3 years. Meanwhile the wait is compensated by a decent 4% dividend.I am currently looking at a -8% loss and will average down when it hits 15-20%.
XHP is a bit of a shame since I was staring at a 60% return, just like Innotek (currently at 16% or so). I guess that is the price to pay when you do not want to listen to the market.
There are a handful other stocks which has not hit its potential yet. The portfolio is currently diversified across 10 companies. No radical approach will be adopted-- I shall stick to picking stocks on value.
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