Short Review on my Disposed and Added positions in March Correction

The market has recovered and soared since the March correction. Perhaps it is a good time for me to look at the positions I have disposed or added during the March correction.

During the late February and early March, I have disposed two positions, CG Tech at around 0.71 and Sunray at around 0.22. CG Tech is quite profitable to me as I have last bought it at late 2006. Sunray is a loss for me as my average price is around 0.27.

At that period, I have also added three new positions. They are China Precision, Techcomp and Orchard Parade. I have discussed Orchard Parade in my earlier post.

So far, all these three new positions are profitable and I have not cut down on any of my positions in these three stocks. Techcomp was more of an undiscovered stock when I bought it, so it may be luck that its price has reached 0.40 in around a month.

China Precision was a stock that I have bought much earlier at 0.40 and sold it at a slight loss before its poor 2006 FY announcement. Thus I have been following China Precision all this while and started buying at 0.285 when I observe that an independent director have started to accumulate the stock. Its current price at 0.28 is also a minor surprise to me as I do not expect such fast price recovery from its low.

At their current prices, these three stocks have not reached my target price. I suppose I will continue to hold on to these three stocks given no adverse news or better stock buys. Nonetheless, please do not ask me on my target price or my views on these stocks. It may be better for one to do their own research and act according to one’s own convictions.

In my opinion, the recent profits from these three stocks are mostly due to luck. I should not be too optimistic regarding the future. Instead, I must remind myself that any adverse event may happen and, I should be cautious and hope that I can obtain above market returns in the long run. Investing, to me, is a painful process after all. I should adopt passive investing if I cannot get above market returns despite my efforts.