My Stocks Trading Review ( Sabana Reit / SembCorp Marine / Asian Pay TV /HPH/ OUE- HT )
In my previous blog post , I have highlighted some stocks I added into my portfolio and same time also few stocks I ceased to own.
Allow me to do some “reflection “ or trading review of these stocks ,which I think is important to know our returns in every investment we made.
Know your ROI :
Why is it important to measure our return on any investment ?
Choosing investments is just the beginning of your work as an investor. As time goes by, you'll need to monitor the performance of these investments to see how they are working together in your portfolio to help you progress toward your goals. Generally speaking, progress means that your portfolio value is steadily increasing, even though one or more of your investments may have lost value.
When we started our investment journey, we will always set a target & goal and do bench-marking against Indexes , Super-Investors or even bloggers ! ( hahaha )
When it comes to calculating annualized investment returns, all things are not equal and differences between calculation methods can produce striking dissimilarities over time. Also , they are many methods to calculate our returns on any investment e.g NPV , CAGR , IRR and XIRR .
I think XIRR is a more powerful function in Excel for calculating annualized yield for a schedule of cash flows occurring at irregular periods.
I have calculated the XIRR for these stocks (including dividend received ) .
Why Using XIRR in measuring your return on investment ? ( Excel : =XIRR vs =IRR )
This link ( here ) will give you more clearer explanation on why I am using XIRR instead of IRR or CAGR .
Here is the verdict of my trade ….
Sembcorp Marine :
In hoping for the quick rebound of Oil price , I went into this counter in Dec 2014 after seeing it drop from all time high of more than $5 …. The verdict is having net lost of more than $-12K !! the others is just the side story …on all the O&G industry . L This is really a “ catastrophic trade “ for me !
Experience learn with paying “ high course fees “ … let’s move on , not every trade / investment we made will make money .
I am still holding some Sembcorp Industry & Keppel Corp as another proxy stocks for O&G industry which I thin is more diversify in their business.
Asian Pay TV
Started to invest in this counter in 2013 in view of attractive and high dividend yield and turn out to be a value trap as the dividend pay out is unsustainable …. I guess most of the reader would have knew the story already … but along the way , I have collected $52K of dividend , although with net lost of $-21,693 on buy and sell but with adding the dividend , it turn out to have a 6.6 % of XIRR . Not so bad as it beat the CPF SA interest rate ! haha
Bought into this counter again recently after seeing the price has been beaten down so much … I think there will be some value at this level ( I might be wrong !! ) .
This is another so call “value trap” stock and hated by most of value investors．My XIRR return was just a meagre 1.9% , can't even beat the CPF OA interest rate . Verdict = FAIL !!
Try my luck !! taking small position on this stock again..
Buying into the story of “shopping heaven “ along the Orchard Road … but the verdict is … barely breakeven after 3 years of investing. Verdict = Fail !! XIRR even worse than FD rate !
I made a quick buck in 2015’s trading with just few days trading and re-enter this counter again in early 2016 ,,, end up with sad story here as price dropped after “ share consolidation “ ,,, you may find a good analysis from fellow blogger SG TTI on this account . ( here ) and (here) .
I didn’t calculate the XIRR as it shown a very high % of return since the investment period is rather short.
This is rather long trade since I have invested in this counter since 2011 and done few buy and sell along the way. I have made some money in early trade as I sold some at $1.1X , $1.2x and $1.3x in 2012 and 2013 with some profit. Started to sell and reduce my exposure on this counter from end 2013 till April 2016 where I have completely get out of this counter by Feb 2016.
Total Investment P/L = $ -5,253 while dividend collected = $78,507 and end up with Net profit of $73,253 . ( XIRR = 9.2% , not bad !! ) .
I think I am really lucky to have exited this counter before the price tumble and free fall after the announcement of right issue.
Warning !! Dangerous !! Watch Out !!
Recent trade on Sabana-Reit already incur paper lost of $ -1890 ( at current price of $0.345 ) , as mentioned before , this is going to be a very “ dangerous and highly speculative trade” not base on fundamental”.
Will the miracle of “ mean reverting “ happen to this counter ? It may or may not !! stay tuned for the eventual update .
< Please read the Disclaimer : all stocks mentioned above is just for illustration purposes and not a call to buy or sell , please do your own due diligent prior acting on this information .>
The message of this blog post is not try to just showing the P/L or XIRR of trade I have done before but to show the important of keeping track of our investment return .
Keeping the record of all your trade , dividend received will be able to let us know our ROI for any investment and of course at the end of the day vs the initial target or goals we have set before.
Cheers !! happy investing !!
|If contrarian strategies work so well, why aren’t they more widely followed?…|
It is not enough to have winning methods, we must be able to use them.
It sounds almost simplistic, but it isn’t. by David Dreman