Despite a strong start to the year, the Straits Times Index had great difficulty breaking the 3,000 barrier. It did so in April but that was not sustainable.
For my portfolio, it is up slightly more than 30% from the start of the year, even if we include the latest purchases of China Animal Healthcare and Elite KSB. Bulk of the gains came from condensed milk maker Etika International and rubber play GMG Global.
The month of July has been an interesting one. As I have mentioned in my earlier posting, Etika International has announced a 1-for-1 bonus issue that would most likely increase liquidity in trading. The stock has risen alot on thin volumes and this capital issue will lower the price, making it poised for further upside to incorporate its latest acquisitions. If there was one stock i would recommend from my current holdings, it would still be Etika International.
GMG Global recently announced a solid set of results. Its second quarter performance had been largely lifted by the strong rebound in natural rubber prices. One news that I am not quite sure how to make of it, is the recent appointment to the positions of CEO and Chairman of individuals linked to the 51%-shareholder, Sinochem International. On one level, I guess that this means that GMG Global has become a full-fledged S-Chip. On another level, this would also mean that revenues from China would be entrenched, driving its bottom line.
Stratech has been a slight disappointment mainly because it has not risen much despite posting a positive set results. It sank further this month when it announced that it had difficulty finalising its annual report due to some administrative glitch. Due to my small position in this technology firm, I am still holding on to it. I hope there will not be any form of stock consolidation like how they did with BBR Holdings.
For those who have been following me, I recently passed the CFA Level 1 Exams. I am still considering whether to sign up for Level II which will be held in slightly less than a year. Whether I make that $1k++ investment will depend on whether I make any career move. Furthermore, based on my experience, I have to give up a lot in terms of social life should I want to work and study at the same time.
The portfolio remains sturdy. With the 5 months left in 2010, I believe that another 10% upside will be possible. For those of you who are thinking of going into the market, try to pick out good companies.The reporting season is out and there is plenty of results and time for you to sniff out such companies.
In my opinion, there is and will still be upside considering that there is a lot of negative news globally. All eyes are trained on the 3,000 mark. If that level is breached, a mini rally lasting 2 weeks might be sparked off. That would be a bad time to buy for those intending to buy and hold for more than 1 year, because there will be more room for downside than upside in the short term.