Thursday, December 8, 2016

"Which Counter Should I Sell?"

I am very vexed recently because I needed more money to purchase new value opportunities and also average down my existing holdings. Thus I was trying to find out which counter in my portfolio should I sell in order to recycle my cash.

I had some advise on Facebook and InvestingNote platform. The discussion was to look at the opportunity cost.

However, with a hybrid approach (that means I actually look at every stock), I find myself having too many stocks in my watchlist. If I will to test every stock in the watchlist with my Enhanced Triple S Scorecard with Dividend Scorecard Portion, I may take too much time.

After thinking for almost a day, I decided to proceed with a "question and answer approach" on my existing holdings and see if there is any counter which I think I am able to sell off.

I have currently 24 counters in my portfolio.

Therefore, the exercise starts now...

Question 1. Which quarter is the next quarterly financial report on?

This is due to my approach in determining which counter I buy. As almost all my counters will provide dividend and companies will normally announce dividend in the 4th quarter, this maybe a catalyst for the future share price jump.

Therefore, any company that will be announcing the 4th quarter quarterly report will be removed from the list of counters to be sold.

I am left with 10 counters.

Question 2. Will I buy this company/counter at the current price?

If I am willingly to purchase this counter at the current price meant that the counter is still good to hold on to.

Those that have the answer "Yes" will be remove from the list.

I am left with 5 counters.

Question 3. When will be the next/possible XD date?

If the counter is currently at "CD", I will remove the counter from the list. Similarly, if there is a high chance that the counter will be paying dividend within the next 6 months, I will also remove the counter from the list.

I am left with 3 counters.

Question 4. Any strong possible negative reason that could affect the share price in the next 6 months? 

If there are strong-confirm-negative-reasons that could affect the share price in the next 6 months, I will be selling these counters.

This is the end of the question answers approach and I am left with 2 counters.

They are TTJ Holdings Ltd and Sin Ghee Huat Corporation Ltd.

For those who are interested in the Enhanced Triple S Scorecard, do not hesitate to contact me directly.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote

No comments:

Post a Comment