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Saturday, 16 March 2013

Cash - Closing Status 15 Mar

In this week l did a little thinking on my investments in growth stocks and have decided to sell them away, for now.

Invested into growth stock Tat Hong 1 lot last week but have decided to divest it away for a small profit of $7 in this week.   I am certain its full year financial will achieve a double digit growth rate on revenue and profit.  And going into FY2014 is it able to match or maintain the growth rates achieved in FY2013?  If Tat Hong is not able to keep up its growth momentum in FY2014 then l do see it as a potential pressure on its share price from climbing higher.  It last achieved 52 weeks high at $1.60 on 14 Feb and it is an important price resistance level to overcome.  Its annual dividend yield is only around 2.0% at current price level so unless it decides to pay an even higher dividend rate it is very unlikely for me to re-invest into Tat Hong.

The last time l have invested into First Resources was in Jan'13 and l have decided to re-visit it this week for my Cash portfolio.  But my investment in First Resources 1 lot did not survive through the week as l have divested it away for a small profit of $11.  l continue to view First Resources positively in terms of growth potential but at the same time l am quite unhappy with its annual dividend yield which is 2.18% at current price level.  Its current price level is quite far away from its 52 weeks high of $2.23 achieved back in Aug'12.  l see great volatility in its share price movement which is great opportunity for traders but certainly not for normal investor like myself when invested into it and stuck with it at higher price level and hence only have to depend on it for low income stream of dividend yield at 2.18%.  This explains for the reason in keeping my investment low in growth stock like First Resources.  l will participate in First Resources growth potential on an ongoing basis (rotational) so long as its share price is still far away from its 52 weeks high but my future investment in it will be kept to 1 lot of investment, at most.       

GRP went XD this week and its intraday stock price was $0.30 - $0.315.  Based on 11 lots holding in GRP under my Cash portfolio, l would have booked a loss between $448 - $283 if have sold it all away after it went XD.  But l would have collected dividend amount of $550 per its dividend rate of $0.05.  So if l have sold it away after XD then my nett profit (dividend collected less divestment loss) would be between $102 - $267.  But alas, l did not have the courage to face the unknown on what its stock price will be after XD so l have sold it all away before it went XD for a profit of $101.  At Friday's closing bell, there are :- Sell 334 lots at $0.315 vs Buy 25 lots at $0.305.  At half time, GRP results were mixed whereby revenue was flat and profit was higher; positive operating cash flow but lower vs comparative period; healthy current ratio. Will re-invest into GRP if its share price weakens to around $0.23 - $0.26.

I have re-invested into Duty Free 3 lots this week under Cash portfolio.  Its 9M2013 results have been good though could have been better if not for the increases in certain expenses categories.  Using 3Q2012 running rate Duty Free should be able to hold its financials growth rates in 9M2013 at full time.There is potential annual dividend yield of around 5.0% which is quite okay just in case l got stuck in it at current price level; which is quite near to its 52 weeks high of $0.48 achieved in Feb'13.

Portfolio walk since previous posting :-

+$984 Total Returns as of 8 Mar

+$119 Gain on sales of Tat Hong, First Resources and GRP

-$37 Unrealised positions worsened

+$1,065 Total Returns as of 15 Mar

previous posting :-  Cash - Closing Status 8 Mar

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