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 25/11/11): | Close (Friday 2/12/11): | Percentage Change: |
XJO | 3984 | 4288 | 7.63% |
XSO | 2254 | 2404 | 6.65% |
Just a quick one today guys, because I am still under the weather with a pretty severe flu. Last week the markets rallied strongly with the XJO up 7.63% and the XSO up 6.65%. As the above figures indicate the rally was certainly being led by the blue chip stocks. After such a strong week up it is likely that next week (now this week) will be flat or weak.
Code: | Weighting: | Share Price Friday (25/11/2011) | Share Price Friday (2/12/2011) | Percentage Change: | Weighted Change: |
OBJ | 19.66% | 0.019 | 0.019 | 0.00% | 0.00% |
MHM | 9.16% | 0.945 | 1.045 | 10.58% | 0.97% |
KGL | 26.10% | 0.110 | 0.130 | 18.18% | 4.74% |
MHM #2 | 11.49% | 1.010 | 1.045 | 3.47% | 0.40% |
Cash | 33.59% | 0% | 0.00% | ||
TOTAL | 100.00% | 10.743% | 6.11% |
In regard to the portfolio it only managed to increase by 6.11%, underperforming the broader market. This was not due to any stocks going down, just OBJ’s reluctance to “join the party” so to speak, it remained flat at 1.9 cents.
Kentor Gold was the stand out performer, increasing in value by over 18% and to hit a new high (since I purchased my original holding) of 13 cents. Buyers are clearly positioning themselves for what should be a solid period of news flow with a report on Andash, Burnakura (feasibility) and Jervois (pre-feasibility) all due shortly.
MHM continued to perform well and close up 10.58%. My second parcel which I bought on Thursday also showed a gained of 3.47% which was a nice little bonus.
Code: | Weighting: | Share Price Friday (25/11/2011) | Share Price Friday (2/12/2011) | Percentage Change: | Weighted Change: |
OBJ | 29.60% | 0.019 | 0.019 | 0.00% | 0.00% |
MHM | 13.80% | 0.945 | 1.045 | 10.58% | 1.46% |
KGL | 39.29% | 0.110 | 0.130 | 18.18% | 7.14% |
MHM #2 | 17.31% | 1.010 | 1.045 | 3.47% | 0.60% |
TOTAL | 82.69% | 8.60% |
Removing cash, which now only represents 33% of the portfolio shows that the combined value of stocks increased by a healthy 8.60%.
Code: | Weighting: | Purchase Price | Current Price: | Percentage Change: | Weighted Change: |
OBJ | 22.94% | 0.023 | 0.019 | -17.39% | -3.99% |
MHM | 11.17% | 1.100 | 1.045 | -5.00% | -0.56% |
KGL | 22.42% | 0.098 | 0.130 | 32.65% | 7.32% |
TOTAL | 56.53% | 2.77% |
And reviewing the current value versus original purchase price continues to show a similar story to previous weeks. KGL is leading the gains (up 30%), MHM is slightly underwater and OBJ is now the laggard. I expect the MHM position to move into profit very showing based on the plant announcement due next Tuesday (barring any meltdown in world economies/markets).
Hi Paul,
ReplyDeleteGood blogs. MHM and OBJ have pretty loose registers so I don't know if you have factored this into your analysis. A lot has to go well for a stock with a loose register to rise in value. Especially in tough economic conditions, they are usually traded by the more experienced to the detriment of the retail investor. Good luck.
Hi Anonymous
ReplyDeleteThanks for commenting. I have been planning on uploading more of my research onto my blog, but the weeks just seem to fly by.
Yes, I do take into consideration the registery, volatility and liquidity of each stock I invest in.
As an investor though I am more focused on the long term potential and fundamentals of each company. Although a stock can be extremely volatile (e.g. MHM when it drop to the low 50's) if they achieve their objectives then the fundamentals will be rewarded at some point in the future.
In order for any stock I invest in to be successfully there are a number of objectives that must be achieved (hence their low MC and higher risk profile)before any rewards will be forthcoming. For example.
- OBJ will go nowhere unless they sign an agreement that brings in $.
- MHM will go nowhere unless they can open multiple salt slag plants.
- KGL will go nowhere unless they can successfully bring their mines into production.
That is obviously a simplistic view of things, but at the end of the day, they must achieve their stated objectives and bring in revenue and profit for there to be an increase in the SP.
This is where the risk lies and hence it is a strong focus of my research. In particular I look for companies that have the potential to generate x10 returns (IMO only). As I know not every one will be successful. I will need one or two big winners to offset the failure of others and to generate a return.
At the end of the day though I am comfortable with each stock and believe I have a strong understanding of the risk associated with each one.
Thanks again for your comment and I look forward to hearing from you again