I was having this though at night, would it be possible without adding any more cash into the portfolio, so that it can grow from $31,175 currently to $60,350 all by just leaving all the stocks in my portfolio alone?
Let us make the simplistic assumption that all this could be done if the all stocks just double in price within 1-2 years (the shorter the better). That could be my primary trigger to sell, other than STI 4,000.
Why are there some stocks that I don't not believe to have to probability of doubling from today's closing price? This probably relates to whether they are a stock for the long run.
Elite KSB: I would love to see this stock become a multi-bagger, but margins remain low. I can it hitting 30 odd cents tops with the stated time frame. I do believe that it has growth prospects but it will take sometime for its story to really catch own with the investing public, like what Techcomp has done.
TPV Technology: It is already a very big company and in a very capital intensive and competitive industry. Go Google RCA before you have any pretensions. Slightly under $2 will be a reasonable price to let go and take profit.
UOB-Kayhian: It is another large cap with almost no growth prospects other than perhaps Thailand. Nonetheless, I love it for its dividends. If things go well for a year or two, FY10 dividends may reach $0.14 per share, which based on my costs, gives me a more than 10% yield. Woot.
What about the rest of the stocks in my portfolio? Why do I think they can double in price? Am I being a bit too optimistic?
The main reason I believe that they can double in price, is due to the low base effect. Simply put, these are mainly penny stock and doubling should not be a problem in a very euphoric market.
Am I being a bit too optimistic? Like I have earlier alluded to in my other postings, I believe that some of the stocks that I am currently holding do have that certain quality. Take Biosensors for instance, heart disease will be a really problem and Chinese people are going to need all the help they can get.
Or natural rubber. How often due you get a multi-year bull run due to the coming of age of an extremely large and important economy. There will be a bust to every boom in a cycle, but enjoy it while it last as people get more cars and GMG Global that ride I am hitching.