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Sunday, August 28, 2011

Weekly Update - Week Ending 26 August 2011

To calculate the weekly performance on my portfolio I take the close from last Friday to work out the percentage increase/decrease in each stock. This is compared to the ASX 200 (Code: XJO) and the Small Ords (XSO). The Small Ords is comprised of companies included in the ASX 300 index, but not in the ASX 100 index. I include the Small Ords in my comparison as it helps highlight the markets appetite for risk.


Market:
Close (Friday 19/08/11):
Close (Friday 26/08/11):
Percentage Change:
XJO
4101
4200
2.41%
XSO
2356
2448
3.90%


This week we saw the Small Ords outperform the ASX 200 again (3.90% increase compared to 2.41%). This continues the theme from last week and highlights that investors are happy to take on more risk and seem to have put the US and Euro troubles behind them for the time being.

It was also an interesting week with both my stocks, OBJ and MHM making announcements. First up OBJ announced the outcome of their Dermaportation Patent which is an important step towards securing a commercial deal. As I outlined in my post on this announcement I anticipated that it would be sold into/used as an opportunity to holders to exit the stock. That was certainly the case with OBJ bouncing off a low of 1.6c (that it reached prior to the announcement), hitting an intraday high of 2.0c before closing even at 1.7c.

MHM also made an announcement in regard to drilling results from their Hill 99 project. The announcement was nothing to get excited about and the share price remained within the low 80c’s for the entire week. You can read more on this announcement and my thoughts here.


Code:
Weighting:
Share Price (Friday 19/08/11):
Share Price (Friday 26/08/11):
Percentage Change:
Weighted Change:
OBJ
25.00%
0.017
0.018
5.88%
1.47%
MHM
12.50%
0.82
0.81
-1.22%
-0.15%
Cash
62.50%


0%
0.00%
TOTAL



1.554%
1.32%


So reviewing the portfolios performance on a weighted basis we saw an increase of 1.32%. This was a little disappointing because MHM did not re-bound as strongly as other small to micro cap stocks. I do however feel the market is getting a little impatient in regard to the lack of news on their US expansion plans which could be keeping a cap on the share price in the short term.


Code:
Weighting:
Share Price (Friday 19/08/11):
Share Price (Friday 26/08/11):
Percentage Change:
Weighted Change:
OBJ
66.00%
0.017
0.018
5.88%
3.88%
MHM
33.00%
0.82
0.81
-1.22%
-0.40%
TOTAL




3.48%


Removing cash from the equation shows a weighted increase of 3.48%, largely due to the fact that any 0.001c move in OBJ represents a 5% increase/decrease which easily offsets any smaller move in MHM.

This was also the last full week of trading before the end of August so stay tuned for my monthly update which will be out shortly.

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