Reality vs Game Plan

Second Quarter

With all the ongoing half reports releasing since the beginning of August, it is interesting to see how listed companies actually performed during the pandemic and whether our judgement is correct for choosing which companies to invest in.

Although I am a big fan of portfolio investing, my current choice of investment can be said to be extremely risky. My view for people between the age of 18 to 35, is to go all out and take risk. The reason being, it is better to make mistakes when there is limited wealth for us to lose at these age, while the potential of our future earnings will be enough to cover for our losses.

On the year which I will be age 35, rest assure my risk appetite take a whole 180 degree turn to being conservative - aka 认命 (accept my salaryman's life as it is).

Sri Trang Agro (NC2.SI)

Previously bought only Sri Trang Agro (STA.SET) on Stock Exchange of Thailand (SET), funded from my allowance in Thai baht. Added more from sales proceeds of CNMC Goldmine (5TP.SI) after its profit guidance, making it the biggest holding in my stock portfolio. 

In the event that the pandemic takes a decade to recover, I have STA to hug onto. Milking it all the way to the bank.

Ring Energy Inc (REI.NYSE)

Been adding this counter since May's negative oil price, you may read here for my reasons to buy REI. Currently the second largest holding in my stock portfolio. Tonight it will report its quarter 2 earnings after trading hours. 

What can we expect from the earnings report? 

I am expecting its Delaware basin property to be sold at 31.5 million USD. It received 500k USD for deposit & 1 million USD for secondly payment. I hope to get an overview on when it can get hold of the remaining 30 million USD in order to further reduce its debt. 

As reported, they produced & sold only 5500 bld/d in second quarter (as they only hedged 5500 bld/d at $50), I would like see how long the management can keep their cost at. Yes, you hedged, but did you make sure you spent as minimum as possible?

Since REI hedged their oil for 2 years, I have plenty of time to make a run off the front door if I needed to, in case oil demand will not be returning for the next decade (unlikely from my POV).

Final Words

I will not go through the reasons why I dropped CNMC Goldmine, definitely it is not just because of its profit guidance. I could be wrong, let's wait for the half year report to come to a conclusion. Such is investing, you read the information, you search for more information, you read people's opinion online, form your own opinion and change course along the way as more information unfold itself. 

The important thing is to form your own opinion and have a plan before you click the buy button.

A decade long journey of the biggest wealth transfer in history is upon us. A lot of money could be made, a lot of money could be loss. To embrace risk or to be risk adverse? Time is running out, make your choice and plan it out carefully. Huat ar!

Disclaimer: Shared opinion on this blog is not to be treated as investment advice to the readers. Please do your own due diligence and consider your financial goals before investing.