Sold TGuan @ 0.90

After thinking over weekend, i decided to close my position in TGuan.

I have been buying and selling this stocks. Thus the average cost for the stocks i bought is 0.825 , selling price is 0.90 with dividen 4 cent. Total earning for this stocks is (0.115 / 0.825) 100% = 13.9 % Net earning = 11% over 6 mths. Not impressive at all. The reasons why i am selling this stocks is because , i see KLSE are way too hot , today transaction volume hit RM1.7billion, this is abnormal at the rainny days, is market really that good/hot? I

When i gone into details of TGuan financial report, i discover something. For 100miliion+ revenue it makes, it only return with 5 % net profit. The profit margin is too low. I have not seen any progressions to improve net profit. TGuan are targeting overseas market for it export business . Apparently, Strong Ringgit policy will not benefit them. For every 1 % when Ringgit appreciate, it will result profit decline of 1% in Tguan. If their price are no longer competetive, they will not have advantage in overseas market.

Considering a few factor, i decided to withdraw my stacks from this company. I do not know wheter i will regret or bitch about it if it soars, but i practice to invest cautiously. KlSE has reach 1430,while world market has been volatile. Obviously, there is risk. My experience told me that i should close this position and wait the right timing for better stocks. I had one in my mind. I need to be patience and wait.


"In this picture Volkswagon Tiguan "

Hold - TGuan

Quite regret that i didnt sold off when it touch 1.12 and buy back now. My AVP is 0.825. Is buy and hold in long run will be profitable? I do not know.

TGuan price has been dropping in the recent market correction. Maybe i should consider to buy somemore? I see value in this stocks, but market are irrational. 0.825 is definetely a good buy. Another point of view, i pay 0.825 for all the inventories, it still give me 0.22 cents cash per share, after netting off everything.


Ok. Back to its finacial report 2nd quater
share issue 105,204

Revenue increase to 111,067 from 102,139

1. Inventories - 85,332 / 105 204 = 0.811
2. Cash - 34050 /105 204 = 0.323
3. Cash - 7438 / 105204 = 0.07
4. Short term dep inc - 7438 from 2950
5. Reserve Inc - 106,919 from 99202
6. Short Tem Borrowing Inc -30789 from 22,332 prev
7. Long Term Borrowing Inc - 5143 from 209 prev
8. Trade R = 68192
9. Trade P =52216

TR - TP - LTB - STB = 68192 - 52216 -5143 - 30789 = -19956
Debt per share = -0.18


Quatertly EPS = 4
NTA - increase 8 cent to 2.02 from 1.94.
Dividen = 5%

2nd quarter earning is no suprise . I just take the minimum assumption, first and 2nd quarter EPS 9cents, 3rd and 4 quarter market no good make 6cent. EPS 15cent. This stock shld value at least 105 cents. If 3 and 4 quarter eps reach average 8 cent. One year eps 17. If 3 and 4 quarter doing well then eps 19.

valuation
15 x 7 = 105cent
17x 7 = 119cent
19 x 7 = 133cent


The sales normally peak during festival seasons. Currently market sentiment no good. I decided to hold one more quarter.

Sold HWGB @ 0.155

I had sold of all my HWGB @ 0.155 after a dissapointing quarterly report. HWGB reported a lost of -1.61c per share.

I see no potential in this stocks and i dont want to hold and wait for another quarter. The selling price is reasonable , so, i sold off all yesterday.

Selling selling price 0.155
Buying price 0.14
profit 0.015 = 10.7%

After netting off commision, i had 9% reutrn. Frankly sepaking 9 % return over 3 months, is not good at all. Since i am buying this counter to speculate on the improvement of financial result, i had no regret selling it. The result is not good, infact , i shld fell luckly , for i earn 9% over this counter. WB ,Rule 1 and 2 is right. Morale of the story is, buy on margin of safety. If the stocks are in margin of safety even stock cannot delivere our fund will be safe.

Gather some money back to wait for chance to buy in another counter.

Sold BP 38.60

Investing Diary 29/7/2010

I had sold of BP at 38.60 which i bought at average price 28.71 , profit arounnd 34% , currency loss 1.5%, total profit is 33%. It is a good buy, personally i think is time to take profit after 5 day consecutive rise is NYSE. Not multibagger, but enough to make some coffee money.

There are a lot of uncertainty for US economy. Some said, US gov will have important annoucement which will affecting market. Also, there are important announcement for BP in 7/8. Wait to see if got chance to enter to grab again. Currently stock still in hand left a little bit TGuan and Hwgb.