[weekly review] 2019 w3 ( 2nd investment position)

THOUGHTS

My work is piling up as I am away on course, but still expected to meet deadlines. It was quite jialat, as i had to miss my exercise session because i was called back to do a last minute piece for big boss , as the person who was suppose to do it submitted a piece that the big boss found unacceptable. Well, at least the piece of work satisfied its objective eventually.

SKILLS

Database. Completed End 2018.

Coding. stalled.

Assessing companies. stalled

Data Visualisation. Started.

TRADING

Transactions

Sunningdale. (350) This was part of my stock scan (here). An up trend counter which price just broke the 200ma. 

Holdings

Jardine C&C. (400) The trade is playing out well, will continue to hold onto this counter as an up trending play. Anyway the holdings are small! (here for the initial thought)

Fu Yu (200). Expiring, so my decision will be to continue to hold onto it, as it is panning out as thought. It is now consolidating above the 20c support, which is very strong! Should it break higher, every bid is 2+% gain... who which trader will want to run away from such a good deal? of course i am ready to run away should it break lower to preserve capital. (initiation here)

Ying Li (350) playing out well. Consolidating right now. Will need to continue holding and will decide if there's a breakdown that hits stop-loss or expires

INVESTING

Transactions

Olam (14%). entered on 3rd week of 2019 as an income investment with element of growth. The thinking behind it is documented here. I wanted to enjoy good dividends as i wait for capital appreciation.

The idea is for entry:

• Good sustainable Dividend of ~4%
• Better cashflow than its peers 
• No foreseeable technology disrupting its business

Exit will be when:

• Dividend cannot be sustained due to negative news
• cashflow drops below its peers
• Creditable disruption to its business appears.

Holdings

DBS (23%). entered on 2nd week of 2019 as income investment with element of growth. The thinking behind initiating a position is documented here & here. I wanted to enjoy good dividends while i waited for capital gains to be realised.

Entry was because of:

• Management. Comparatively better management than the other banks, proactively absorbing technology to avoid disruption.
• Attractive dividend yield (5%, $1.2) that is sustainable.
• No foreseeable disruptive technology in sight.

Exit will be:

• when dividend cannot be sustained above 2.6%
• Foreseeable disruptive technology to its business spotted