Stock portfolio

[Stradlinz]

For the past weeks, I have been observing my stock portfolio. As Dennis has been saying that in the last stage of bull market.. 2nd and 3rd liners will rise whereas 1st liner blue chips will be stagnant..

So as I'm an aggressive type of investor (still young lah can take more risks), I started to do portfolio adjustments.

For example I sold off starhub at $2.65. Reason is the high of 2007 is ard $3 so upside potential only ard 13%. Dividend also drop to 7.5% now. And if you havent noticed.. the dividend payout ratio of this counter exceeded the earning per share. Not sure how the management can sustain this next year..

And thks to James, then I bought Orchard Parade which the uposide potential has been discussed. In the days ahead i might sold some of the REITS and buy some stocks which has higher upside potential.

This is my strategies for the next 6-12 mths.. can the rest share their strategies for year 2011?

[Dennis Ng]

For the past weeks, I have been observing my stock portfolio. As Dennis has been saying that in the last stage of bull market.. 2nd and 3rd liners will rise whereas 1st liner blue chips will be stagnant..

Just to clarify, actually I said that in the last phase of the Bull market, Blue Chips would also rise, but the upside potential is limited. With STI at 3,200 and even it if it hits 3,900 (record level in year 2007), that's just 21% upside from current levels.

On the other hands, in the last phase, it is the 3rd liners (penny stocks) that typically rise the most, can be easily 50 % to 200%...however, the problem is Most Penny Stocks are Rubbish Stocks, so the ability to sieve out the "Gems" from the "Germs" (haha) is very important, which is why I think the best thing any Retail Investor can do is to first attend my Secrets to Making Money in Stocks Seminar to have a better chance of making money, instead of losing money in the last phase of the Bull market.

[jamestai]

Hi Stradlinz,

Have been seeing your post and there is much I can learn from you too. I also hold some Starhub stock and good dividend REIT stock like Lippo Maple Trust and First REIT. I also notice that the rise in their price is not much as before. Many of them almost reach their NAV.

Maybe I am not as aggressive as you. I would like to keep for them in the mean time for diversification purpose of my portfolio. I guess it really depend on the risk averse of individual.

But I did not realize that the Starhub stock price is close to it high in 2007 of $3. I also have doubts on how they can keep giving out such high dividend more than their Earning Per Share ratio. Will keep an eye on this.

I have also buy some good Penny stock base on some that Dennis has analysis, I believe we will be able to reap some good rewards in a few months time . Let enjoy the ride and help each other to maxmise our investment return in stock.

James Tai

[kersin]

I just sold some of the blue chips stocks to buy stocks with higher potential like CES. Waiting for the share prices to rise.....

[XLTan]

Hi,

I have some unit trust holdings which are still in red with about 10% loss currently. Am pondering whether I should realise the loss now and take it out to buy some of the penny counters instead.

Would like to heard other people's views on this. Thanks!

[Dennis Ng]

Hi,

I have some unit trust holdings which are still in red with about 10% loss currently. Am pondering whether I should realise the loss now and take it out to buy some of the penny counters instead.

Would like to heard other people's views on this. Thanks!

what fund is it? You need to ask yourself, which are you more confident of? Investing into a fund where you have no control, or choosing to invest into stocks that you've done homework on.

Only you KNOW the Answer, nobody has the answer.

[uris]

I sold off my unit trusts bought near the height of 2007 at a 40% loss.

During 2007, I still know nothing about investment personally. After getting only 10% in a Greater Asian unit trust where everyone is making lots in China, I followed the greater market (fools market) and bought in. When prices retreated 10%, I averaged down instead of selling and cutting loss.

I was down more than 50% at one point. I didn't know what to do then and just treated the investment as "invisible", pretending to ignore the mistake I made.

This year, I made an effort to better improve myself. I finally decided to cut my losses even though it was at 40%. I asked myself this question: I was down by 40%. Yes, one day I MAY make back my initial capital investment (not forgetting the 2% sales charge every year) but by taking the money out and investing it myself, I will make back my 40% with far better odds and faster as well. With the knowledge that Dennis has taught, I believe most of us whom went for the course is better equipped.

Hope a personal experience from someone whom have a huge loses with unit trusts can assist you in making the decision.

[jamestai]

Hi XLTan,

Just want to share with you my experience here.

I assume you buy your unit trust through retail financial institute eg. Retail bank, Brokerage firm or through some web site like fundsupermart.com

My advise is don't bother to go back to them for advise. Most of them who sell you the unit trust fund don't know anything or they will just give you the common excuses that the fund is performing badly is because of Volatile Market condition, they not sure what the fund manager doing so it is not their fault that the fund not doing well, or the timing you investing in the fund just happen to be bad timing and then they keep telling you to look at long term potential return or to review your investment portfolio. Worst of all some of this Sale Banker end up asking to buy more funds telling you that it will help to recover some losses. Don't believe in all that Bull ***** ! All they care about is meeting their Sale quota and also they have hundred of fund to sell so they cannot be expert in all of them.

The only thing you can do is ask your banker or whoever sell you the fund to provide the contact person and phone number of the financial company that
your unit trust fund belong to. Talk to them directly because they know the product better. There must be a person to talk to, if your banker tell you he don't know or there is none, he is lying. Then tell him you want to talk to his manager or you just have to google it yourself to find out the contact number of the fund company and the person who in charge of the fund. I have a friend he setup a fund company with his partner to create a fund for selling German health care property to institution. He told me that it is a mandatory requirement from MAS that any financial company who wish to sell fund to retail investor in Singapore, they must have a physical office address and contact number and person. Or else it is consider illegal for them to sell the fund here in Singapore.

Just like Dennis say, you need to understand what is the fund you investing in. Ask direct question to the person you talk to like :

1) Why your fund is not performing well ?
2) Who is your fund manager and what are they doing ?
3) Why should I want to continue to stay with your fund ?
4) Is your fund in trouble ?
5) How are you going to make profit for the fund moving forward ?

Take note that some of them will tell you that their fund outperform some benchmark or some other similar type of fund. Don't believe that, it is just an excuse for them to defend themselves. The key thing is to ask them what is your fund manager doing. Remember you are paying them management fee even if you are losing money in the fund.

Only then you can decide if you need to get out or stay put.

James Tai

[alvin]

And also take note how much management fee they are charging.

If compound interest can work for you, it can work against you too.

[XLTan]

Thanks to all for your guidance.