Personal Update

Was asked to relocated to near Pattaya area, hence I am inactive for the past few months as I was busy with the new project and making myself comfortable with the newly rented apartment. Will be slowly updating my trips since November 2020 till date.

A crazy 2020 and a fabulous start for 2021. Within the first 2 weeks of 2021, the overall profit & loss for my portfolio made a 180 degree turn from loss to profit. 

Overall P&L till date

Reduced holdings to ten as I would like to be more focus and not diversify too much. 

Danaos Corporation (43.9%)

I am heavily vested in Danaos Corporation as we might finally be entering a supercycle for containerships. 

1) ZIM IPO, DAC holds around 10.2% of ZIM equity before IPO

2) Increase in containership chartered rate

3) Increase in asset valuation due to increase in containership charter rate

4) Improve in debt reduction due to the above and it might finally start paying dividend

5) Price / NAV below 1

6) PE below 10

Watch out for earnings report soon.

China Everbright (19.41%)

Reinvested in China Everbright as I am building up a less volatile portfolio to prepare for my ten years retirement plan. If you believe in the China story, you should see where I am coming from.

1) Water is essential, all these projects are like small streams of water eventually forming a never-ending flow of cash. Then again, remember we should never forget about Perennial Real Estate Holdings, delist before its project start earning money.

2) Price / NAV below 1

3) PE below 10

Sri Trang-Agro Industry (10.38%)

There are enough people talking about STA in Singapore, hence I will keep it short.

1) It is not a pure glove company, it is a rubber company. Know the difference.

2) STGT to be listed on SGX the second half of 2021.

3) Ask yourself whether you believe covid will end anytime soon.

Ring Energy Inc (8.57%)

Bought back in 2020 at the same time as DAC to hedge for recovery when covid is over. DAC & REI are the only two companies that met my criteria.

1) Its hedge against oil price will help offset any near term oil price volatility

2) It restarted its drilling program, would provide more cash flow if oil price continue to rise

3) Price / NAV below 1

4) PE below 10

Something is moving its share price these days.

Medtec International (7.44%)

Its result will speak for itself. Please ask yourself whether you believe covid will end anytime soon.

Seroja Inv

This is a cigar butt play, three more months before I collect back my capital plus profit. Pray they just distribute and not do stunt.

The rest are insignificant.

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.

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.

Market Never Die

Simple Life

Thing do not have to be fancy to have an appreciation for it. Everything is interesting when you are in a foreign country.

Raining season is arriving here in Thailand, saw a crocodile swimming happily downstairs last week after a storm. Who want some crocodile meat?

Like I have always said, Thai people can be quite a creative bunch of people. With the ongoing pandemic, students without laptop or computer can now just turn on their television and watch lessons from it.

Eating dinner with wifey while she watches English lesson from the local TV

(She sibei bo liao, so now I am back in school with her)

This is why we need a small balcony, We use the sliding door to protect us from oil when we fry things.

Two fish for 50 baht, jin huat!

FOMO is very real.

That is why I always encourage people to start a portfolio.

This way you will never miss out and always stays in the market regardless whether it is going up or down while enjoying the ride. The worse thing that can happen is nothing moves.

Still in the process to reach my ideal portfolio allocation by including ETFs into my portfolio.

My current strategy is to buy undervalued US oil company while shorting Dow index.

You may read the reason why I bought Ring Energy Inc (REI.NYSE) here. (PS: I took profit last Friday, now waiting to buy back at a cheaper price.)

Weekly Update

New Changes

* From daily update change to weekly update or as and when I feel that I have something interesting to share.

* Updated my stock allocation to include US & SET as of 16th May.

US Market

Just started my first investment in US market last night. It is exciting as the change in share price can be quite drastic within seconds.

Ring Energy Inc (REI.NYSE)

Jin huat! 

In the green for the first time in FY2019 then came the pandemic. 

1) Hedged from now till December 2021, means they are not required to deliver a single drop of oil to get paid. Note, there is a difference in their hedged price in FY2020 & FY2021. The later is 5-10 USD lesser.

Reference from REI 1st Qtr Presentation Slide, page 19

2) Delaware sale was previously announced back in April that they entered into a PSA. Current ongoing for due diligence from the buyer side. Deal should go through within June.

3) Started shutting down wells in April and 100% shut down all well production on 23rd April.

See the Transcript for Q1 REI earn calls here.

Fortuna Silver Mines Inc (FSM.NYSE)

Bought it the first thing when market open when I see silver price at 16.8 USD per ounce.

 

It is one of the few silver mining company in the green and only one below NAV. 

(Important thing is price/NAV below 1, I am that cheap)

As of now, its price per NAV is already above 1. 

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.