My investment record (1)

Overview

The investment start with Rm 48,000 deposited into Jupiteronline security account at early of September. For convenience I will set 1st september 2012 for first day.

The detail of stock I buy, which average acquisition price, and current price is shown in following figure.

Current Return

Total Holding Period return , including interest paid on trust fund deposited and dividend paid, is -4.61%.  I will be using time-weighted rates of return calculation to measure my long term performance. The target, is to eventually beat the long term return on investing in “mutual fund” (currently average 6.5% for Amanah Saham related fund)

Now the mistake/mitake

i) Entering Pohkong at high price. Around  september to October, Pohkong was “goreng” by unknown person, from roughly 0.45 to .57 per share. That short term speculation is clearly unsustainable, however, fearing that the market will forever recognized the value of the stock, and the don’t buy now, wont have chance later mental altitude caused me to start buying at 0.51. Which proved to be a mistake when later the price drop to as low as 0.44.

ii)  Miss out on Coastal.

Coastal, a ship building company based in sabah, which utilized a tax-exempt given by operating in Labuan, have a relatively strong performance this few years. Earning was growing rapidly, P/E ratio was low, debt was low, contracts built up until next 2 years. I miss when I can buy it with Rm 1.80 . Now the price is Rm 2.00

iii)  Miss out on Tradewind

Another pet company of Syed Mokhtar business empire. Bear the usual characteristic of the others, high debt to equity ratio but low P/E. Besides, tradewind just acquired Bernas, who have a monopoly power in imported rice market, but have to bear the cost of buying any local produced rice at guarantee price.

Recent decline in performance, plus the high debt to equity ratio, weight the company’s value down to RM 9.50 something (using my own formula), this mean that, incorporating with the safety factor required, the market price of the company is still higher than my target buy-in time.

In time, the company may gain by improving its capital structure (pay down debt thus paying less interest cost) , while profit from its diversity in various key agriculture area: sugar, oil palm, rubber and rice keep rising with population growth. But I didn’t anticipated syed mokhtar will privatized the company so soon. Thus loosing out the opportunity of capturing 20% return.