Wednesday, July 27, 2016

Have You Sold?

Updated on 28 Jul 16 11.54am: Decided to sell off Krisenergy Ltd after Swiber Holdings Ltd files to wind up. Another lesson learnt. It seems the industry is really in big trouble. Deep value trap in the future.

No, you didn't? Then did you buy?

After reading what B wrote, I decided to write a post of my recent actions to emphasize some of the views he had about the recent situation.

To start off, I believe this current rise in share prices are temporary and this is a time to SELL rather than BUY. In addition, I also tried to re-balanced my portfolio and clear off some dead wood.


This is an action-packed 2 months for me.

I managed to divest the following holdings during this period and increase my cash position from about 5% to 15%.
However, with this much cash, I also bought some other stocks.
  • Addition of New Stock - Krisenergy Ltd* Please read update above
  • Addition of New Stock - Top Global Ltd
  • Addition of New Stock - Sing Holdings Ltd* Today
  • Addition of Existing Stock - USP Group Ltd
  • Addition of Existing Stock - Hock Lian Seng Ltd* Today
  • Addition of Existing Stock - Hupsteel Ltd* Today
Do note that although I bought these stock purchases, but I do not expect them to rise significantly over the short term (< 1 year).

My opinion is that I will be holding it long term (2 to 3 years) and I have to expect to average down further in the near future.

"AVERAGE DOWN?! THEN WHY BUY?"

This is to plan for the worst case scenario. With this expectation, I will not make aggressive purchases and I will be more cautious when I enter any investment. In addition, as stated above, I really feel that share prices seem artificially inflated now. If STI Index falls significantly again, it will most probably affect the whole Singapore market will most of the stocks having a much lower share price.

I also try to choose stocks that is on a downward trend. Getting a stock on a upward trend, in my opinion seems like a suicide move in the current market (I may have 1 or 2 suicide move stated above).

Nevertheless, if you have already did your due diligence and purchase new stocks, do keep hold of it and don't sell immediately if the STI start falling. Have faith.

So if you are thinking of investing in stocks for the long term, do give my initial Triple S Scorecard a try. It's still a good tool!

However, I will only be releasing the Enhanced Triple S Scorecard for those that attend My Sharing Session with T.U.B. The attendees of the 1st Sharing Session with T.U.B has all received it. If you are interested to attend the next Sharing Session, do not hesitate to contact me directly.

Oh... and do remember, please like our Facebook page - T.U.B Investing.

2 comments:

  1. Wondering: How do these companies (that you added) make their money?

    ReplyDelete
  2. Hi Lizardo,

    Thanks for dropping by. May I know which company are you requesting more information on?

    Sing Holdings is property developer.

    So does Top Global. I will do a post on Top Global too since its a bit complicated.

    Krisenergy is oil firm. But I have sold all already.

    Regards,
    TUB

    ReplyDelete