Type something and hit enter


Summary For December 2020

Portfolio @ End of Dec20

December 2020 is another good month for my portfolio which gains 13.7%. This raises the annual gain to 95.4% which is much better than my target of 30%.

Year 2020 is a tough year for many of us, but the best opportunities always hide in a crisis. 

This is very true in stock market investment. A crash in share price produces a superb opportunity for investors to grab good stocks at much lower price.

I think most medium to long term investors, or fundamentalist should do well in stock market in year 2020. Our KLCI closes higher by 2.4% for the year and US indices break new highs.

As I have mentioned last month, I was actually very fortunate to invest in SCIB, KPower and Jaks. These 3 stocks contributed massively to my portfolio gain this year.

SCIB has risen by 176% since I first bought it in the end of May20. Its 3:1 bonus issue has just been ex-ed and I'm waiting for its free warrants which is yet to be announced.

Since most contracts awarded in the second half of 2020 started from Oct20, I'd expect a great FY20Q4 results for SCIB unless there are delays or start-up losses.

As for Jaks, investors should not expect a "beautiful" FY20Q4 results in Feb21 even though the unit 1 of its Vietnam Thermal Power Plant has officially commenced operation since 24th Nov 2020.

Most investors expect RM200mil annual net profit to Jaks when two units of the power plant are running at full steam. In average, one unit can contribute ~RM8mil net profit in one month and this might not be able to cover its initial cost. 

Jaks is bidding for LSS4 solar project and if it succeeds, it will be a catalyst to its share price. However, I read from an analyst report that it has only a slim chance given the huge amount of bidders.

The mother share price of Jaks gains 48.9% since I started to invest in them. If I were to include the warrants, overall gain up to the end of 2020 is 72.5%.

KPower should be my best investment in 2020 but I sold it way too early. I have to accept it as I just can't buy at the lowest and sell at the highest. Compare to Adventa, this is nothing.

Year 2020 sees a turnaround of 2 losing stocks in my portfolio. They are Prolexus and Leon Fuat.

Prolexus rose because of its impressive profit from selling ProX Mask during the pandemic. I have sold all its shares after FY21Q1 result announcement as it did not meet my expectation even though in term of PE ratio, it's still quite "cheap".

Leon Fuat rides on a small steel bull run in the end of 2020. I still hold on to its shares and plan to wait for next quarter result since the trend is still there.

As for Hibiscus, I have lowered my average price from RM1.05 to RM0.70 and I hope that crude oil price will continue its recovery road in 2021. I also hope that it can acquire good producing assets soon.

I have 4 tech-related stocks in my portfolio. All of them are not very well-known and certainly not star performers.

I chose Genetec over Greatech, I chose JHM over D&O. Both are not good decisions in hindsight. 

Krono's share price makes some progress but I read somewhere that its business model is not that good. I'm not too sure about that and what I can do is to wait for its next quarter result. It's still in loss at -9.2%

Smetric-WA is the best performer in my portfolio in Dec20 with a 62% gain in one month. I actually "hoped" for this to happen when I bought this super penny warrants in Nov20. 

Now I'm still undecided whether to sell it for a quick 50% gain or hold longer to see whether the company can grow. It might drop back to the ground if it can't grow its business and deliver consistent profit.

Scientex will have its bonus shares and free warrants ex-ed on 13/1/2021. I don't expect its share price to grow fast but I'd just hold this "steady" stock for longer term.

Supermax is the biggest loser in my portfolio in Dec20 with a 34% decline in a month. Initially I thought that I'll just leave the shares aside without adding more but now I think I might want to average down again.

Market is very negative towards gloves stocks now and I don't know whether the sentiment will ever turn positive. Perhaps the only way for Supermax share price to go up is to diversify and acquire significant stake in growing tech company with its abundant cash (just kidding).

Pos, Master & MyNews are newly added stocks for 2021. However, I still don't have confidence to promote any of them into my core portfolio. 

Master's next FY20Q4 result might not be very good but I expect gradual recovery starting from year 2021. I hope that it can secure more new customers.

As for MyNews, its share price in Nov20 fell below the worst moment in Mac20. Its upcoming quarterly result is not expected to be good but I decided to buy some of its shares first pending the announcement of the opening of its first CU store soon.

Lastly, Daya just announced its PN17 regularisation plan in which a new company will take over its subsidiaries. Frankly I don't understand fully all those exercises and I'm also lazy to read all of them.

Is it good for existing shareholders? I really don't know. If its share price drop, then probably it's not good, and vice versa.

In 2021, investors might concentrate on "recovery stocks" such as aviation, gaming, oil & gas, consumer, construction and finance stocks.

I think technology stocks, especially those related to big data, cloud, 5G, automation, e-payment, electric vehicles etc might still have room to grow and renewable energy related stocks might benefit from inevitable global trend of clean energy.

Manufacturing in general should continue to do well but the major concern for me is the possibility of weakening of USD against RM as most companies are export orientated.

Overall, year 2020 has been a great year in term of stock market investment for me. However, I'm aware that I should not be over-confident. I'm just an ordinary investor with a bit of luck this year.

Previously when my portfolio achieved very good gain in a year, the subsequent year will make loss mainly due to starting the new year on a high. 

When you climb higher, the chance to fall is also higher.

So, I guess realizing some profits is important to minimize the risk of portfolio loss in this year, and I still have a lot to learn in term of selling stocks.


Click to comment
Back to Top
Back to Top