Torn Apart

Wow. With some careless trades, I’m now back to 872k, my total equity value when I posted back in July 24, 2012. I got impatient with my positions in inactive trash stocks that I decided to sell down even if it meant taking 20% losses. The bid and offer spread of those stocks were really far-off. I just realized that its not my style playing stocks that have no catalysts that I am aware of.

Anyway, past is past, I had no problem taking that 30k lost, even though it was a mistake being impatient and selling down instead of just waiting to get hit in my posts.  I was just really uncomfortable being stuck in those positions while seeing lots of trading opportunities.  Now I realize the importance of liquidity.  If you’re an active trader, you should always make it a point that if things go wrong and there are better opportunities–you have to be able to switch positions in a jiffy.

It’s not bad to position in inactive stocks, but you have to make a commitment before you take position in them.  One must have a longer time frame, and the willingness to let his/her money sleep in these kinds of stocks.  In my case, I’m not yet ready for these kinds of positions as I prefer to be in control of my port in cases where something might go wrong.

These past weeks, I haven’t been trading much.  It’s hard to focus on trading when you have personal (and STRESSFUL) things to tend to. Lot’s of bounce plays DIZ, ORE, EDC, PX, ACE congrats to those who profited from those trades.

Here’s my port as of August 16, 2012:


Positions:

1. AC – was sold down probably because of their over-the-top bid on the FTI lot. Is their huge bid reasonable or not? They seem to give immense value and priority in the property.  The question is WHY? Well for one, the FTI lot is very near to the Fort Bonifacio Global City.  The development of that lot would pretty much create synergies for them in the future. From what I’ve heard, they plan on replicating what they did on the fort (you know how ALI develops properties) to the FTI lot.

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2. EEI -Was watching this stock since 6.50 and somehow I didn’t want to get left out so I decided to take position.  My entry was a bit off at 7.69 and now its at 7.28.  I think this stock can be a surprise. I remember William J. O’Neil (author of How to Make Money in Stocks), talking about entering stocks that are on its all time high, with huge quarterly growth. Check out his CANSLIM criteria. Basically, it looks for stocks that show strength for consecutive periods, and I see that EEI is one of them. Company is also looking forward to PPP bids, and the like, which may show potential upsides in the future. Let’s see how the 7.00 mark holds.

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3. GERI – This stock went as low as 1.84 lol by that time I should’ve cut already, but I decided not to take action since I’ve noticed that MACQ, UBS, and Deutsche was still buying the stock.  Of course, as an institutional buyer, you wouldn’t want to move the stock up immediately if you were accumulating it.  I’m willing to give this position more time.

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4. LOTO – trimmed a bit on this stock, it’s now at 14.50, planning to sell more soon.

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5. MEG – took my initial position on MEG. Although it had a mediocre (+15%) Q2 earnings report, I still believe in this play. One of the cheapest property stocks in terms of P/E. I also like its charts. The position requires patience though, I don’t expect it to manifest immediately.  By the way, MEG owns part or majority of ELI.

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6. MPI – I like this stock fundamentally. Strong 1H earnings at +76%.  This stock is a good exposure to utilities plus potential upsides in infrastructure plays. Likewise, they have partnerships with AC in some bids. It seems that funds are accumulating it, there’s just this resistance at the 4.20+ levels. Looking forward to add more here. Various brokers have up’ed their ratings for this stock 🙂

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7. PIP – Added on my position here making my AEP at 3.10. Just holding on this stock wherever it seeks to go. One of the most high performing stocks in terms of quarterly growth. Definitely meets the CANSLIM criteria.

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That’s for my positions. Hmm, looking at my port, it seems that I’m more of an investor right now instead of a trader. Almost all of my positions are fundamentally sound.  This will definitely test my patience. I’m thinking of trimming my positions or just waiting it out till September, which I believe will show potential opportunities.  I didn’t place any of my cut loss points as I’m thinking of  holding it out for about 1 month and see where it’ll bring me.  I want to try sticking to my positions for the medium term, but I’m a bit torn as well. Hmm, maybe I’ll try a 50/50 port, half for trading and half for medium to long term positions. I’ll also re-assess my port as I’m currently on 170k margin. I definitely need more cash.

BTW, I’m seeing famous investors/speculators abroad increasing their exposure to gold and oil. Chart looks good for gold, while oil seems to rise steadily. Might pose some opportunities in the future. I’ll be on the watch for mining and oil stocks.

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One thought on “Torn Apart

  1. Pingback: Lessons from the Ghosts « ImbangKlase

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