Wednesday 8 October 2014

Note to readers

Dear readers,

Thank you for your support, comments and insights shared in this blog to date.  You can soon view my trading portfolio in a new online platform by The Edge Media Group (TEMG).

Starting tomorrow, 9 October 2014, this blog will cease updating my trading portfolio. Please go to The Edge’s newly launched financial portal www.theedgemarkets.com to view the latest updates.

Tong’s Momentum Stock Trading portfolio and the fundamental analysis and reports on Stocks with Momentum (which are generated by our proprietary algorithm, based on trading volume and price trends) will be published in The Edge Financial Daily (FD) every Monday to Friday from 10 October 2014. 

You can get free digital copies sponsored by SP Setia Bhd by registering at the above portal. A four-page news and analysis bulletin on Singapore business and investment news as well as the fundamental analysis of Stocks with Momentum listed in SGX can also be obtained for free. 

By its very definition, these are companies which saw a price and volume breakout. The probability of substantial price movements after we highlight them are more than 90%. Equally, these companies are very likely to make subsequent announcements.
But stock prices do go either way. So, we ask you to check out the company’s fundamental and valuation scores and its risk assessment - either by reading FD or by using the simple-to-use analytics in www.theedgemarkets.com.

In the experiment we did in this blog by buying many of these companies on the basis that they were selected on Momentum, the verdict is still out. While Tong’s Momentum Stock Trading portfolio is up by 6.2% compared to the 3.1% decline for the stockmarket as a whole since 8 July 2014, it was mostly accounted for by one major successful pick and we lost money in many of the stocks we bought. Or we sold out the stocks too early. The lesson of the experiment is that even for us, with reasonably good knowledge of the equities market, short term trading is extremely high risk and the probability of profiting after transaction costs are less than fair.

Starting 10 October 2014, I am also introducing Tong’s Value Investing portfolio. This portfolio will be published in The Edge Malaysia business weekly paper. The companies selected will be those featured in www.theedgemarkets.com and in the FD, as Insider Asia’s Stock Picks.

This is our attempt to build a portfolio of stocks for longer term investments. We will try to discover companies with sustainable business models, improving productivity, unique products or services, innovative ideas, low stock valuations, good growth and strong balance sheet. Certainly not all the above characteristics are likely to be found in any one company.  But there will be some companies with some of the characteristics above that will justify investing.

You can also track your own portfolio with risk management tools and receive email alerts on companies of interest to you, again for free. We will alert you on any newsbreak or announcements of these companies in your watch list. We also provide you the ability to calculate the risk of your portfolio against the market.  

We at TEMG are excited about www.theedgemarkets.com and hope you will benefit from it as well. We welcome you to share your thoughts and ideas. This is only version One and we promise more exciting innovations and features soon. So, stay tuned.

Tong

Friday 3 October 2014

Tong Kooi Ong's Portfolio

On Thursday, my portfolio decreased together with the broader market.

The portfolio value went down by 1.85% to RM 105,958.31 while the FBM KLCI declined by 0.41%.

Total returns for the portfolio decreased from 8.0% to 6.0%.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 8.9%, and has registered an annualised return of 25.0%.

Total profits currently stand at RM 5,958.31.

The gainer for the portfolio was Ken (+0.9%). The stocks that lost ground were Willow (-6.4%), Fibon (-4.0%) and KSL (-3.3%).

There were no stock transactions yesterday.



Thursday 2 October 2014

Tong Kooi Ong's Portfolio

On Wednesday, my portfolio decreased together with the broader market.

The portfolio value went down by 1.2% to RM 107,960.31 while the FBM KLCI is declined by 0.05%.

Total returns for the portfolio decreased from 9.3% to 8.0%.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 10.5%, and has registered an annualised return of 33.8%.

Total profits currently stand at RM 7,960.31.

The gainers for the portfolio were Elsoft (+3.0%) and Fibon (+2.8%). The stocks that lost ground were ES Ceramics (-7.1%), Homeritz (-2.7%) and Gunung Capital (-2.7%)

The following shares were bought yesterday, following the pick-up in trading momentum:

Willowglen MSC Berhad (Stock code: 0008): 5,700 shares at RM0.875 per share. The company provides remote terminal units and software that provides telemetry real-time motion video images and integration of various business systems. The company is in a net cash position with a decent return on equity.

Crescendo Corporation Berhad (Stock code: 6718): 5,100 shares at RM2.89 per share. The company is principally engaged in property development and related construction activities. The company has consistent, has increasing turnover with good EBITDA and net margins.

The following shares were sold yesterday:

SLP Bhd: 7,600 shares at RM0.645 per share.

LBI Capital Bhd: 3,000 shares at RM1.53 per share.

Mitrajaya Bhd: 5,100 shares at RM0.94 per share.

Fitters Bhd: 3,600 shares at RM1.33 per share.

KimHin Industries Bhd: 2,000 shares at RM1.76 per share.


Wednesday 1 October 2014

Tong Kooi Ong's Portfolio


Tong Kooi Ong's Portfolio

On Tuesday, my portfolio increased while the broader market remains unchanged.

The portfolio value went up by 0.22% to RM 109,275.78 while the FBM KLCI is unchanged by 0%.

Total returns for the portfolio increased from 9.0% to 9.3%.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 11.7%, and has registered an annualised return of 39.8%.

Total profits currently stand at RM 9,275.78.

The gainers for the portfolio were ES Ceramics (+5.0%) and Prolexus (+3.7%). The stocks that lost ground were Homeritz (-2.1%) and Success (-2.0%).

The following shares were bought yesterday, following the pick-up in trading momentum:

Fibon Berhad (Stock code: 0149): 9,300 shares at RM0.535 per share. The company is principally engaged in formulation of advanced polymer matrix fibre composites manufacturing and sales of electrical insulators electrical enclosures and meter boards. The company has good net margins and cash is 40% of market capitalisation.

Gunung Capital Berhad (Stock code: 7676): 5,300 shares at RM0.94 per share. The company is principally involved in provision of charter services for fleet of land-based passenger transportation assets. It is also involved in developing mini hydro power plants and property development. The company has consistent, strong EBITDA margins of 50% and net margins of about 16%-18%. Also, company is in a net cash position.

There were no shares sold yesterday.