My Portfolio: 3.81%
STI: 6.33%
S&P: 0.54%
Tracker Fund: 2.49%
Notable transactions on my part:
Complete divestment of CityDevelopement. I think I made enough from this idea that I did very little work on, other than the expected shareholder-friendly efforts that are primary reactive (and not proactive) after such bad publicity. I made over 100% in this, and in all honesty, I dont think I deserve this.
Complete divestment of Hong Kong Ferry. Likely no catalyst. It was just a very cheap stock and the price was weak due to the market in general. It was a very small position.
I also bought more Goldlion-- because I can't find any great ideas (on my own). Let's see what happens in June.
I sold my entire chunk of Haidilao because it got called away. HDL was part of an option strategy which I sold calls on. When the founder (Mr Zhang Yong) decided to return to active management, the market got a bit crazy and the options got in-the-money.
Building up a small position in Kwan Hong, a lightly traded stock in HKEX that is actually based in Singapore, due to its balance sheet play. It has a lot of cash and seemingly good reputation.
Bought H&R Block in the states. Not the greatest idea but there is a bit of overhang and worries in this stock. It had a bit of an issue with its customers (screwing the ones who used its FOC features). Automated tax services from the G might play a part in market sentiment. I really need to look at the results but based on earnings, even with debt in mind, it is not too dear. The only thing that is missing... is insider purchase.
H&R is a very small cap stock and utilizing options is very clumsy and inefficient. Let's hope its dividend history will make up for it in the long run.
***
Mum had a bit of medical scare after some red eye and a visual mass was detected in the eye of which she had operation on. After a handful of hours at the A&E, the eye specialist cleared her, much to my relief.
As I was waiting, I saw news and clips of the incident at Buddha Relic temple involving a young Indonesian family who are here as a tourist. I also chanced upon the amazing story of the Australian ice skater who simply won the Olympic gold medal by hanging at the back of the pack while the ones in front jostle and fall.
I guess that is what fate is. Such a cruel and incalculable part of our life that we can only do our best to prepare for.
***
Bitcoin Treasury Stocks
As the week roll, the stock prices of these companies fell way beyond their "NAV"
I tabulated this table with the help of Gemini when the bitcoin prices are below 70000 USD.
Everyone is expecting a house-of-cards situation, where stocks like Strategy would begin unloading their holdings. Unfortunatley (?) its CEO is still quite defiant... and fortunately for him, BTC does come back up as I write (BTC is priced at 69.3K).
So the general idea is that these stocks would do cash calls, either by preference equities that has a accrual dividend policy, or simply using debt, to buy BTC and given BTC's inclination to go up in pricing, it allows them to perpetuate this act.
I think this strategy would stall even if BTC prices recover significantly from present.
Some thoughts I had:
1) As time goes, these dividend and debts need to be paid. Some of these are actually paid MONTHLY.
2) The United States G have about 24B worth of BTC, based on Arkam. I think they might do something to 'stablize' prices.
3) There isn't much actors who are holding that much BTC except Strategy and the G. The market cap of BTC is about 1.38T, which is 1380B. So these two entities hold less than 5% of total supply.
4) Of course I was thinking of ways to make money. Some of it were
a) Utiliziing a volatility strategy by buying calls and puts. This is stupid, because of IV
b) Buying seriously OTM puts and calls given the extreme possibilities (it will crash and burn or recover by huge margins). Because I am too conservative with money, I wouldn't make life-changing bets.
c) Buying tons of puts on Strive, which is weakly capitalized and utilising a lot of preference shares. However, I do see insider buys, which is.... interesting.
While I am sucking my thumb, MSTR recover 20%++ intraday. I checked the demo trade that I execute for (a), and guess what.
I still losing money on that trade. So it was a poor idea.
So long until next week and I wish everyone good health.
-boonsong
