Sunday, April 3, 2011

Portfolio as at End March 2011

My portfolio, as at end March 2011, consist of the following stocks:
AIMSAMPREIT, China Taisan, Eratat, Heeton, Hongwei, Leader Environment, Qingmei, Techcomp

Bought and Sold: Heeton, Hiap Hoe, China FibreTech, Broadway
Added to my holdings in Heeton and Hiap Hoe. Sold large position of Heeton and the whole position in Hiap Hoe after the government cooling measures. Broadway was bought under the thought that its price may increase, as the sentiment on HDD improves. Later, I abandon this thought and sold Broadway at a loss. Bought China FibreTech as a value play trading below cash. After the accounting incident on Hongxing and Hongwei, I become prudent. In addition, China FibreTech has an insider share sale probably in 2010. Both factors help me to decide to sell the entire stake in China FibreTech.

Sold: Guocoleisure, Eratat
Sold Guocoleisure as I think that it is too slow-moving. Reduce my Eratat position by a fifth, as I do not like its share placement. I did not dispose the full position, as I think that it is still pretty undervalued.

Bought: Hongwei, Leader Environment,China Taisan, AIMSAMPREIT,
Hongwei is bought as a play on rising cotton price. Never thought that it will have accounting issues. Have marked the Hongwei position to zero value. Leader Environment is bought after the glowing DMG report. On hindsight, I should sold it when it rises to $0.31. Nonetheless, it is a small stake. China Taisan is bought mostly at a high price of $0.18. Its earnings should rise this year and next year as its production capacity expands. AIMSAMPREIT is bought recently as a temporary placeholder, since I do not like to hold too much cash.

Added: Qingmei
Added Qingmei at a higher price than the present price. Similarly to China Taisan, its earnings should rise this year and next year when its production capacity increases.

Portfolio Composition:
Qingmei, Eratat and China Taisan are my three largest shareholdings.

The year-to-date returns is -18.5%. More than half of the negative returns is due to Hongwei's accounting irregularity. Going forward, I guess I will have less share purchases, as I do not find many interesting stocks in the present market.