Donation

Donation
Donation amount as little as $10. Please donate generously. To donate, click on the sggives logo.

Blog Archive

Sunday 15 July 2012

Random thoughts

At half time 2012, l am tweaking some priorities ----> changing strategy.

Set at beginning of 2012, two approaches of trying to increase my realised positions via (1)actual dividend amount received; (2)selling a stock counter in advance before XD so as to achieve the expected interim dividend amount and hence making available more funds for re-investment.

Additional points at half time 2012 now, (3)to minimize or avoid investing into companies with substantial business links to China and Europe; (4) My selling price target on a stock is the anticipated interim/final dividend payment amount ----> this is a minimal price level on profitable stocks invested; (5) Hoping to divest in stocks which have strong strength at a profit equal to their full year dividends or at the maximum of twice its full year year dividends.

Both China and Europe are big regions and all businesses are in some ways or another having certain direct connections with them.  To me, Europe has actually collapsed so it will take a few years of bringing it back to the way before. I have already divested some stocks having substantial exposure to Europe and l will reinvested in these stocks again if it can reduce significantly their business dealings there.  On China, be it slowing down or not is never the real issue as l am more concern of the escalating costs of doing business there.  Many Singapore companies are suffering increasing staff costs and escalating raw materials with their business dealings in China.  Even Chinese companies originating and operating in China and are listed in Singapore also facing similar issues of lower profitability due to rising business costs there.

I have noticed there were many times l have sold off stocks following strictly to my selling price target which is determined by the expected dividend amount.  In a bear market, this selling price target is good but not during bullish periods. But then again, would l be able to achieve the selling price target in a bear periods?  Bearing in mind of these situations, l will then let the target selling price be the minimal price to exit and during strong bull periods then l will hold on a bit longer to sell at higher price.

Good luck to me.


p/s
as a reminder when l looked back to july month again next year on no trades this week.  No new investments because stocks are now at dizzling heights at the moment.  If buy now then l will get stuck; for example on stocks under CPF portfolio.

No comments:

Post a Comment

BrainyQuote

The Motley Fool

NextInsight

PropertyGuru

SGX News

Hellenic Shipping News

Singapore Law

Business Google News

Business Times