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Sunday, 22 July 2012

Cash - Closing Status 20 Jul

Foreland Fabritech
Ever since l have started being serious with stock market back in Sep'11 (10 months ago) l have suffered huge losses three times under Cash portfolio.  The third time is the most significant and it is concerning Foreland Fabritech.  I was attracted into Foreland because of its better profit warning on 14 Feb and because of this l was blinded by the anticipation of higher dividends.  A week after l have invested into Foreland then came the disappointment of a lower dividend rate announced on 28 Feb.  Its share price came crashing down in the immediate next two days on 29 Feb and 1 Mar.  Foolish me, l have averaged down twice in Mar'12 and May'12.  It was the last straw when it announced a lower profit warning on 17 Jul and l have on the next day immediately executed a divestment of the entire 97 lots at a significant loss of $4,329!!!   As of Friday's last done price of $0.055 and if l am still holding on to the entire 97 lots then l will be poorer by $670 and it will be a paper loss of $5k but since l have fully divested so l will learn from it.  It is indeed timely that l have updated my investment strategy to exclude investing into companies having significant businesses in China.  There are many local Singapore companies with significant exposure to China market and l reckon they too will suffer in terms of expensive and escalating business costs which outstripped productivity.

Managed to get 1 lot of IHH Healthcare from the IPO.

For the past nine months both revenue and profit were growing at double digit and have healthy balance sheet and cash flow too.  However, logistic and handling costs stayed stubbornly high which Goodpack not seems able to reign it in, yet.  Goodpack is exposed to Europe but so far, there is no mention of it being a hinder so, finger crossed that it stays the same when it announced its final quarter results in a month's time.  l am hoping for Goodpack to declare a dividend rate of $0.03 when full year results is announced in Aug'12.  Its share seems oversold at the moment and further weakness will be an opportunity for me to accumulate further.

I have wanted to invest into QAF for quite some time so, l bought 15 lots of it this week.  I am anticipating a similar dividend rate of $0.01 which possibly XD in early Sep month.  This anticipated XD rate is same as paid in 2010 and 2011.  Its share seems have been in oversold territory now.  It is likely to stay in this oversold position next week if the general market condition stays weak.

Portfolio walk since previous posting :-

-$569 Total Returns as of 6 Jul 

-$4,329 Loss on sales Foreland Fabritech

+$3,160 Unrealised positions improved (mainly due to divestment on Foreland)

-$1,738 Total Returns as of 20 Jul

previous posting :- Cash - Closing Status 6 Jul 

1 comment:

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