My Investment Record (6) - 01 February 2014

The stock market (KLCI) will close for CNY and Federal Holidays and reopen on 4th February. Hence, any performance of broad index (KLCI) and my current stocks holdings will stay until then. Hence this is why i can do the performance evaluation in advance now. 

I will try to evaluate my portfolio performance against broad market index (KLCI) on a more regular basis at the end of each quarter. ( Hence the next evaluation date will be 1st of April). 

Market Overview

The taping off of US Federal Reserve Quantitative Easing Program (QE) and the falling of China's PMI index results in global investors shifting capital from emerging market to advance economy. This had caused KLCI stock market to fall from its peak of 1872.52 at the end of 2013 to 1788.78 at 27th Jan 2013. Although stock buying activities at the end of Chinese Lunar Year had lifted the market back to 1800+ level, US Fed decision to continue reduce the size of QE program will likely to cause the stock market fall back later. 

Current Return and performance

The holding period return for KLCI in the past period ( 2nd November 2013 - 31st January 2014) is 0.48% (with dividend included). Holding Period return for my portfolio, is -0.40%. Total holding period return since the start of investing is 5.11%, annualized to be 3.58%, this match the Fixed Deposit rate of 3.2-3.8%, but still far below KLCI return of 15.16%(annualized, 10.48%)

As stated in previous post, 

" In theory, my performance should track KLCI return although i currently hold non of the KLCI composite stock. In practice, my performance would lag behind KLCI return by 0.5% - 1.0% due to 

1) Trading cost (currently average 0.3%-0.5% per trade)

2) Portion of cash that earn only risk free rate. 

The objective of this investment program remain the same. I will try if i can track the market overcome trading cost and requirement to have cash position, if i can beat the market, that shows i can survive in the investment management business. " 

Trading Activities

i. Increase holding of MFCB(3069), with higher NAV, growing revenue and earning, MFCB remain attractive at current price level (P/E of 9.2)

ii. Increase holding of MNRB (6459), the reasoning is similar to i, MNRB remain attractive at current price level (P/E of 6.62)

iii. Increase holding of MSPORTS (5150), the company just start a new venture into leisure/ casual wear business. I am betting that the new venture can at least breakeven while core activity (shoe soe manufacturing) remain profitable. 

iv. Addition of TECNIC (9741), the company specialize in making plastic product, healthy revenue growth, stable profit, low P/E (6.85) make this attractive. 

v. Addition of TROP (5401), if we believe malaysia property market still had some room for growth, then buying Tropicana Corporation at 60-65% of current NAV level will be a bargain. Especially when two things (unbilled sales close to RM2 billion and profit from two sales of land lots ) are not reflected in TROP financial statements yet. 

vi. Addition and subsequently disposal of FIMACOR (3107), i make a quick small profit (approx RM 200) for the transaction done within a months. The reason for addition? i see great potential in security paper trading business for stable income. The reason for disposal? FIMACOR recent venture into Oil Palm Plantation in Indonesia is going to turn sour due to fall of IDR and trending low of CPO price. Besides, the stocks is thinly traded.