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 30/09/11): | Close (Friday 7/10/11): | Percentage Change: |
XJO | 4008 | 4162 | 3.84% |
XSO | 2233 | 2337 | 4.66% |
First up, apologies that the weekly update is late this week, but I have made some important changes which will provide a more accurate picture of the portfolios performance. Originally when I started recording the weekly results I was basing the weighting of each share within the portfolio off its original purchase price. For example say I had $10,000* in MHM that represented 12.5% of my portfolio. But with MHM dropping over 50% my holding was only worth say $5,000, however I would still report it as representing 12.5% of the portfolio. That is now no longer the case, so the weighting will fluctuate on a weekly basis depending of each shares value. (Please note the weighting is based on the previous week’s closing price of all shares and cash held in the portfolio)
* These are not the real figures
So to the update! Last week the market hit a low on Tuesday before powering higher to close at 4162 for a gain of 3.84%. The XSO outperformed and closed up 4.66% which signifies that investors are starting to take a “risk on” approach again. Indeed if you look at commodities (copper in particular) and the FOREX market (AUD’s) there were gained across the board which certainly bodes well for the short to medium term in my opinion. I expect that we will see some weakness this week, which will hopefully allow us to consolidate before pushing higher.
Code: | Weighting: | Share Price (Friday 30/09/2011) | Share Price Friday (7/10/2011) | Percentage Change: | Weighted Change: |
OBJ | 19.22% | 0.017 | 0.017 | 0.00% | 0.00% |
MHM | 6.46% | 0.61 | 0.71 | 16.39% | 1.06% |
KGL | 11.49% | 0.096 | 0.097 | 1.04% | 0.12% |
Cash | 62.82% | 0% | 0.00% | ||
TOTAL | 5.812% | 1.18% |
The stand out performer this week was MHM which closed up 16.39%. This was largely on the back of their Friday announcement (which sent the stock up over 10%). As I mentioned in my earlier post on this announcement, it appears as though management read HotCoppper (or at least share holder emails) and systematically put to bed any negative sentiment that was stirring in regard to the company’s short term direction. I am obviously still well under water on this position, but it is nice to see a bounce. Given MHM’s pervious weak performance you can see that it now only represents 6.42% of the portfolio. So on a weighted basis MHM only provided a 1.06% increase in the portfolio’s value.
Both OBJ and KGL did not do anything significant in the week which was a little disappointing given the strength of the wider market.
If we remove cash from the portfolio (which current represents 62.82% of the portfolio’s value) then the percentage performance improves slighted with the weighted value of shares increasing by 3.17%.
Code: | Weighting: | Share Price (Friday 30/09/2011) | Share Price Friday (7/10/2011) | Percentage Change: | Weighted Change: |
OBJ | 51.71% | 0.017 | 0.017 | 0.00% | 0.00% |
MHM | 17.39% | 0.610 | 0.71 | 16.39% | 2.85% |
KGL | 30.90% | 0.096 | 0.097 | 1.04% | 0.32% |
TOTAL | 3.17% |
That’s it for this week guys, but I would love to hear your thoughts on my blog and the new way of calculating my portfolios performance.
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