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 11/11/11): | Close (Friday 18/11/11): | Percentage Change: |
XJO | 4296 | 4177 | -2.77% |
XSO | 2424 | 2355 | -2.85% |
The market (XJO) was down 2.77% this week, with the XSO dropping only slightly more. It appears that risk is off again for the time being. The markets are certainly a funny beast, one day they are up on positive news on Europe, the next day they are down. Until we get some concrete developments it is likely that the market will be quite volatile, however the general trend still appears to be up.
Code: | Weighting: | Share Price Friday (11/11/2011) | Share Price Friday (18/11/2011) | Percentage Change: | Weighted Change: |
OBJ | 23.49% | 0.023 | 0.022 | -4.35% | -1.02% |
MHM | 9.29% | 0.970 | 1.070 | 10.31% | 0.96% |
KGL | 22.72% | 0.097 | 0.110 | 13.40% | 3.04% |
Cash | 44.51% | 0% | 0.00% | ||
TOTAL | 100.00% | 6.455% | 2.98% |
My portfolio however had a fantastic week and was up 2.98%, beating the overall market by nearly 6%. What I think this highlights is that company fundamentals always have the potential to override general negative sentiment across the broader market. For example MHM announced their third US contact and provided additional details on the news conference that will take place. This has instilled confidence in the company going forward and has seen the share price rise from the mid 60’s to over $1 in a couple of weeks.
Kentor Gold also appears to be making progress and the closer we get to Christmas the more likely we are to get an announcement on Andash. The fear of missing out is very powerful and this has seen some strong buying in KGL at 11c, 11.5c and even 12c over the past few sessions.
OBJ was the only stock to fall last week and closed down 0.001 or 4.35%. I think we have just entered a quiet period and when news flow drops off in the bio-tech space so too does the share price.
Overall the portfolio increased by 2.98%. The strong gain from MHM (10.31%) was offset by the fact that it only represents less than 10% of the portfolio. I would like to buy more but I am content if I have “missed the boat”. If it retraces below $1 I could be tempted to jump in.
Code: | Weighting: | Share Price Friday (11/11/2011) | Share Price Friday (18/11/2011) | Percentage Change: | Weighted Change: |
OBJ | 42.33% | 0.023 | 0.022 | -4.35% | -1.84% |
MHM | 16.73% | 0.970 | 1.070 | 10.31% | 1.72% |
KGL | 40.94% | 0.097 | 0.110 | 13.40% | 5.49% |
TOTAL | 100.00% | 5.37% |
Removing cash, which still makes up 44.51% of the portfolio further highlights the strength shown by some of the stocks within the portfolio. Without cash the portfolio was up 5.37%.
This week I also thought I would add in a new section:
Code: | Weighting: | Purchase Price: | Current Price: | Percentage Change: | Weighted Change: |
OBJ | 22.94% | 0.023 | 0.022 | -4.35% | -1.00% |
MHM | 11.17% | 1.195 | 1.070 | -10.46% | -1.17% |
KGL | 22.42% | 0.098 | 0.110 | 12.24% | 2.74% |
TOTAL | 56.53% | 0.58% |
This shows the original weighting of each share when they were purchased. It does not include cash, hence why the total does not equal 100%. From this we can see that the portfolio has increased 0.58% since I made my first purchase in OBJ. This does not bother me given most of my stocks have the potential to re-rate by a significant margin on one or two announcements (in my opinion). As a result the weekly returns of the portfolio will be lumpy and the true gauge of its performance will be in 1 or 2 years time. The best performer so far has been KGL where I am up 12.24%. MHM is the worse and remains 10.46% under water.
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