There were much transactions made on my little portfolio this month due to the extreme volatility in the Hong Kong market. For 10 days, the Hang Seng Index fell from a high of 28416 to 26345, a 7.8% decline. With the increased volatility, I increased capital injection. Some of the transactions include:
a) Divested Playmate Holdings after ex-dividend. Realized my mistake in valuation and move on until there is a larger, significant discount (40-50%). This means a price of $0.70 or so.
b) Divested Hop Fung Group on government regulation worries. The following screenshots off the quarterly report explains:
This isn't a pretty picture and I disposed Tat Seng as well.
Cash from the divestment above, and additional capital, were deployed into the following
a) Increased TTJ after a 8-10% discount from my first purchase price
b) Initiated purchase of Thai Beverage; I do believe that the company will be able to turn the company around from its troubles, given the 10-year records. Meanwhile, I am expected to receive about a 4% dividend.
c) Increased position in Xinghua Port Holdings after the volatility provided the liquidity for this little-traded counter. After a few days, I received news that the Stop-Work Order on Xinghua Port's CCIP is lifted.
d) Initiated position in Qingling Motors, a net-nets stock with a pretty good dividend yield. It has fallen well over 20% in recent months.
e) Increased position in a slow-grower which identity I would keep mum since I am still in accumulation stage.
Most of my companies have some sort of problem weighing on them but I think they are temporary. I am a strong believer that markets are usually efficient and the ability to wait out problems is a major advantage of a retail investor. How long can problems last?
As the Hong Kong market recovered in the last two days, my little portfolio's year-to-date returns stands at +16%, leading the STI by 20% and HKEX by 27%. I am counting my blessings...
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