Tuesday, January 24, 2017

Coporate announcement: Portfolio update

As mentioned during the annual report of Sillyinvestor Inc, we will continue to trim our portfolio to hold more cash as and when opportunity arises.

The management does not think there is anything fundementally wrong with the company. The privatization of parent company is just noise. 

With a holding period of 15 months, the return has been 16% including dividends. We feel it is a fair return as we await opportunity.

The management want to take full advantage or a bear/ correction as and when it happens. Management believes it should not need to wait more than 2 years. yes, we are attempting the impossible, trying to time the market. 

In the 2 years, there might be opportunity loss in holding cash, but management is trying to press the reset button on its investment.

There is unlikely to be further selling in the portfolio as the company is already 50% cash and this ratio will further increase with injection of capital soon. 

However, if there is any counters hitting or nearing targeted sell price, management will sell too. But with current prices, management think it is unlikely it will happen soon. 

The vested equity portfolio value has fallen to 43k as a result of the disposal. But total portfolio value including cash has improved to 85k. 

Disclaimer: Readers are advised against taking the coporate actions as any advice for buy or sell, either as a follower or contrarian. 

Statically, you stand a better chance as a contrarian though. LOL

2 comments:

  1. I feel that sg market still have chance to climb higher.

    Can reserve your cash to buy US growth stock like Facebook, Apple , Google if market drop.
    I still have confidence on Tech stock.

    ReplyDelete
    Replies
    1. Hi yeh,

      Thanks for the heads up, but I am not familiar with US stocks, and have not studied the companies u mentioned.

      So I pass

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