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Saturday, 3 January 2015

Recap Posting from 11/11/2014: (16 Dec 2014)

KLSE Composite Index as at 11/11 is about PE 17++. With PE 17, market is not cheap; in fact we have one of the highest PE in SEA. One of the reasons our ‘Virtual Tracking Portfolio’ has not been buying/accumulating shares around 1 month (stopped at 30% shares / 70% cash). Market is choppy and our crystal ball is not working to tell us where the bottom of oil price is!
On 21/11/2014: 
-We made an exception to buy CIMB @ 5.90 due to the RM7.25 high fair value calculated post merger. But market is always correct, it went south.
Current 16/11/2014:
During market correction, all good counters are not spared be it in good Fundamentals or having sound business. KLCI has lost 10.3% since July 2014 but most stocks has lost about 30% to 50%.
So what to do next?
When there is nothing to do, do nothing.
1. Keep in view:
Monitor the OIL PRICE and RM fluctuations – price will stabilize at one point of time. You may see the price trading in range with no further drops and good news starts being reported. From there only starts to deploy your funds in if your bullets is not much.
2. Do our homework, most stocks corrected around 30% to 50% - To do analysis on their fair value and we shall deliberate further for upcoming purchase/trading.
(all are welcome to post questions and counters to watch for us to do a group study)
3. As we are doing both value investing (mid to long term) and portfolio management (37% shares, 63% cash), we still have room to accumulate once the dust has settled.
P/S: When it rains, it pours. Do not catch the falling knife. Enjoy your holidays and Christmas!

Humble Pie 

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