The past few months have seen some changes in my portfolio. Will just jot down the changes and the reasons (shortened version) for the changes.
Should i be able to find some time i will consider writing a longer version of certain changes
Removals
Ossia Intl - Following a result that has met expectations, the share price has increased by over 20% from the results release. As i have only initiated positions since March my average price is around 0.12x.
It is fair to say that the estimation was on the lower end of my expectations as well.
AAG Energy - With the offer at 1.85 approved, i have divested on the last day of trading at 1.83 as the 1+ months wait would be too long for myself as i have decided to take a risk and try to use the funds to do channel to something else.
Central China Management - I only have less than 2% of my networth in this stock but i have decided to clear the deadweight anyway. This brings an end to any involvement i have with central china stocks for the time being. As such i can keep lesser eyes on the property market and more on other stocks in my portfolio. The final divestment was done in May at a price of 0.415. Price as of 27 June is 0.335 so guess i am right in the short run for now.
Additions
When in doubt, just add things in your portfolio. Yup that is what i did so the usual suspects have seen an increase in their positions. However, there is one new addition to the list.
Yeebo International (Hkex: 284) - A company that has its own business that has shown improvement in bottomline in the past years. Financially healthy and way below book value as the associates it holds has far outweigh the market value.
Being associates, they contribute to the company's bottom line as well which has improved over the years.
As a whole, it is trading at 0.3 to its book value. With some divestments done in 2022 to its associates, it remains to be seen if the same will happen in 2023 but since its associates are recording better profits, it will benefit slowly as well if it chooses not to sell the golden goose to the market.
I have took up a stake following proceeds of AAG Energy. I foresee adding more when the company divest more of its associates shareholding or when the associates report better results and have a good roadmap being executed. But for now, buy some and observe and if by luck anything delightful pops up then its all good.
Dream International, Mainland Holdings and Huationg Global which has already been in my portfolio are the other additions. To sum each addition in 5 and less points each.......
Dream International
-Weak US Orders Expected due to Funko Q1 Earnings Poor and Full Year Expected to be Weak.
-Betting on the increased orders from Disney Japan and China.
-Increased expansion and hiring through Covid shows faith in business
-Good Dividends, best financial health in years and below book value
-IR replied, while quality of answer might not be the best but it will suffice.
Mainland Holdings
-New Factory came into production in May, will observe how the production and margins improve
-Guided double digit growth for 2023 in Dec 2022. To see if this plays out
-Factory in Bangladesh being lauded for success of OBOR and Common Prosperity
-Reputable Management, Hosting of Key Customers to new factor in May .
-Hiring of Jap Language Knowledge Staff might indicate new customer / market as jap revenue is low now.
Huationg Global
-High Risk Stock, Financial Statements and Audited Reports actually look difference with huge disparity.
-Red Flag of CFO Leaving adds to the high risk. Although removing a CFO that prepares statements with disparity from audited reports does make some sense
-Inland Logistics Support related to construction activity showing strength. With projects lasting 1 year, can we expect results to sustain this year? Hopefully.
-Possible Divestment of Office might be catalyst as in the audited report, the sale value > book value.
-Dormitory revenue low compared to peers. Might see a catch-up or higher amount this year due to demand supply factors?
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