The 10% profit and run game on moomoo (record so far)

 

Recently, I have opened a moomoo(futu) account for the apple share. However after putting in the money of 2001 USD, I did not cash out the initial amount placed and hence decided to use the money to try to see if I could make some small profits to have some Bak Ku Teh meals.

                                             Rangoon Road Ng Ah Sio Bak Ku Teh

The main aim is to make around 10% profit and divest it. Should it end up reaching a 10% loss, the position will be reassessed to see if it should be held longer, or it should be divested.

I did not set any rules currently for when I need to buy again when I sell. But I try my best to do it on the same day if possible. As such, it is unlikely that I research very deep into the positions. Which is why the investment amount is not huge as well.

Current Record as follows.

Transaction Date	Action	Counter Ticker	Counter Name	Amount Purchased/Sold	Purchase/Sold Price Per Share	Commissions Paid (In HKD)
4 February 2021	Buy	00934 HKEX	Sinopec Kantrons	4000	2.74	33.92
11 February 2021	Buy	08502 HKEX	Ocean Line Port Development	8000	0.24	20.69
17 February 2021	Buy	08502 HKEX	Ocean Line Port Development	8000	0.235	20.69
25 February 2021	Sell	00934 HKEX	Sinopec Kantrons	4000	3.01	32.48
25 February 2021	Buy	00822 HKEX	Ka Shui International	20000	0.58	31.44
12 March 2021	Sell	00822 HKEX	Ka Shui International	20000	0.64	32.54
12 March 2021	Buy	03339 HKEX	Lonking	4000	2.85	31.43
26 March 2021	Sell	03339 HKEX	Lonking	4000	3.14	Pending
26 March 2021	Buy	01538 HKEX	Zhong Ao Home	16000	0.92	Pending

The free commission card is not applied to the first trade made on 4 February 2021, it is applied to the rest.

                                            Hopefully the good streak continues

Rationale for Buying/Recent Views

Sinopec Kantrons – Value purchase, flushed with cash following the sale. Oil prices rise in February and hence it hit around the target range. Hence divested. I did take a glance at the results release in March. It was rather decent apart from the huge divestment did not result in

Ocean Line Port Development – Its already 1 of my holdings even before I added it on moomoo platform, results satisfactory, gearing came down very much as well.

Ka Shui International – I have posted in my post recently titled Ka Shui International – A good FA Company. The only update is that the positive profit alert is pleasing to the eyes. The good news probably flow onto the market in the following days and the target range was hit and hence divested

Lonking – Good Financial Position, Good Sales in 2021 January and February. The results released on 25 March was blockbuster, 33 cents dividend and improved results in 2020 when the street was expecting weaker results. As a result it went up 18% on 26 March. Hitting my target range and hence divested.

Zhong Ao Home – Results likely to be ok I think, the price has corrected quite a bit since the Greentown investment in a stake in the company and current price to earnings is relatively cheap in my opinion. The current price represents a close to 50% discount to Greentown’s initially entry price of $1.80. Though there are a few key risk to take into account as well. Mainly 1) High Goodwill, around 14% of total assets. 2) Impairment of trade receivables and high trade receivables.

 

The other counters on the consideration list before I picked Zhong Ao Home

1.        Pacific Basin (HKEX 2343) – Dry bulk play. Good Dry Bulk Data for the year so far. Will it sustain though? Time Frame not right after all results released recently and it has been going up already recently due to the Suez Canal news that has hit headlines for memes and laughters.

2.        Yip’s Chemical (HKEX 408) – Valuation looks cheap considering that a spin off is likely on the horizon. The recent share buyback would also demonstrate confidence to the current high chemical price climate. Time frame wise, with results released recently, its not a play for the results seasons hence there could be some time to go and some monitoring could be done.

3.        Central China (HKEX 832) – Results yet to be released, a spin off of its project management unit could occur this year. The value is there but I would want to make this a core position if the price is right. As such I chose not to add this as I believe the results is likely to be subpar as it has guided for lower gross margins of its property development already. Having said that, if its project management segment display good growth, it would help in improving the valuation of the company as it undergoes the spin off.

4.        Asia Cement (China) Holdings Corp (HKEX 743) – Results postponed; however, Taiwan side has released the results and it looks rather bleak as 4^th quarter seems to be flat. Having said that, good revenue figures in 1^st 2 months of 2021. With release of results of other companies in the industry such as Anhui Cement (flat results). I think if there is upside to occur, it probably would occur later.