Last month my portfolio beat the wider market by circa. 2%, this month we smashed it out of the ballpark by recording a gain of 9.32%. Given the XJO retreated by 4.16% during the month, this means the portfolio outperformed by a very impressive 13.48% (even with 45% of the portfolio in cash).
Market: | Close October | Close October | Percentage Change: |
XJO | 4298 | 4119 | -4.16% |
XSO | 2407 | 2315 | -3.82% |
After such a strong October it was highly likely that November would be a weak month, and it was. The ASX 200 (XJO) closed down 4.16%, with the Small Ords (XSO) fairing a little better at 3.82%. This seems to indicate that traders and investors are still happy holding the “riskier stocks” which can only be a positive in my opinion.
Code: | Weighting: | Share Price End of October | Share Price End of November | Percentage Change: | Weighted Change: |
OBJ | 23.11% | 0.022 | 0.021 | -4.55% | -1.05% |
MHM | 7.28% | 0.740 | 1.035 | 39.86% | 2.90% |
KGL | 23.84% | 0.099 | 0.130 | 31.31% | 7.47% |
Cash | 45.77% | 0% | 0.00% | ||
TOTAL | 22.211% | 9.32% |
In regard to the individual stocks it is hard to go past MHM who rocketed up 39.86%. This was on the back of three supply contracts for their new US plant and confirmation of a press conference that is taking place early next week. Unfortunately for me, and the portfolios performance, MHM only represents 7.28% of the portfolio which means on a weighted basis that 39.86% gain gets watered down to only 2.90%.
Kentor Gold was the other strong performer up 31.31%. This was not really on the back of any news, just general improved sentiment towards the stock and a build-up of anticipation as news on Andash fast approaches.
OBJ was the poor performer and closed down 5%. Not a great deal to worry about, but it did give up some of its intra-month highs relatively easy. As with all bio-tech’s though it is a waiting game and until you get a solid announcement nothing too much happens.
Code: | Weighting: | Share Price End of October | Share Price End of November | Percentage Change: | Weighted Change: |
OBJ | 42.61% | 0.022 | 0.021 | -4.55% | -1.94% |
MHM | 13.43% | 0.740 | 1.035 | 39.86% | 5.35% |
KGL | 43.96% | 0.099 | 0.130 | 31.31% | 13.77% |
TOTAL | 17.18% |
Removing cash from the equation shows a very healthy 17.18% return for the month. On this basis the portfolio outperformed the broader market by over 20%. We do however have to consider that both OBJ and MHM remain slightly underwater compared to my original purchase prices, but at least MHM appears to be heading in the right direction.
