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Tuesday, November 25, 2014

All in - Huat Fund fully invested~~

I am jobless for this week due to my second job-hopping for the year. Thus, I have some free time to do some readings, analyzing works and market watching.

So firstly some market comments: In my honest opinion (IMHO), the market will be increasingly volatile for the next one or two years but overall the market will keep on rising as long as the interest rate is kept low. A 20% to 30% annual return will continue to attract more newcomers like me into the market to earn "quick money". As more newcomers come into the picture, the arrogance and greed in the market grow. Then we will see another severe market correction in maybe 2-3 years time.

Based on this hypothesis, I have decided to tinker abit with Huat Fund and insert more stable and mature stocks and make Huat Fund to be more dividend yield orientated. That means I will only invest in growth stock IF there is a gem out there. Ideally I would like to do these changes slowly. However, I had to move faster since one of my favourite stable stocks Westport is having a run for the past two days.

I reckon this is due to a 67pages research report from CIMB with a Target Price of RM4.57. FYI, I still have not read through this report. A summary of the report in TheStar can be found here. Knowing that CIMB has joined the bandwagon, I got excited and bought another 1000 units of Westport @ RM 3.40. Well, this is the side effect of intensive market watching. Your hand tends to get itchy after a few minutes in front of the screen. Anyway, Westport is a stock that is worth investing for a simple fact that it would certainly earn more in 5 years time down the road compared to today's earnings.

After this transaction, Huat Fund is cashless and fully invested. I have to sell off something to increase the cash level soon. Guess which stock will be axed soon. The fund looks like this as of today:

Sunday, November 2, 2014

Averaging down - Jaya tiasa

Last week I bought additional 2000 units of Jaya Tiasa. This is in anticipation of the stronger demand for palm oil from developing countries like China and India next year and the implementation of B7-Biodiesel in Malaysia.

After this purchase, the cash level of Huat Fund is low again. I might need to sell some stocks when the rights issue for Inari comes. The Huat Fund has recovered from the stock slump for the last few weeks. Huat Fund looks like this as of today: