A Regret and some trades

I shall post some of my recent trades here. However, first I will state a regret or maybe an error of mine.

Recently Shanghai Asia has rose to near $0.30. As I have posted sometime ago that I have sold Shanghai Asia and thus I have missed the run from low $0.2x to near $0.30. This is my error in not being able to be more patient.

My impatience or psychological weakness may have shone again as I sold Jardine Strategic when the STI drops around 50+ on a certain day. On the other hand, the sale was made as my strategy is to raise cash when market starts to fall. The cash raised will be handy to pick up bargains if market fall becomes a market correction. So far, Jardine Strategic has risen above my selling price. I am not certain whether I am willing to buy it back at the current price given my caution for high margin of safety. I would prefer to buy when it's at below $13.

Besides selling Jardine Strategic, I have also sold part of my Global Testing position. The sale of Global Testing position may be another potential mistake as semicon recovery may be in place now. Nonetheless, as I have retained part of my Global Testing position, I will continue to gain if Global Testing rise in future.

I have meanwhile used the receipts from the sale and some cash to buy China Lifestyle, C&G Industrial and SP Chem as the market recover slightly from the bearines (or STI 50+ drop).

However, I have kept some cash in reserve. While my portfolio is still underperforming Sesdaq (Sesdaq YTD is over 90%!), I am glad that one of my holdings, Techcomp, has risen to $0.65. My cost price for Techcomp is slightly less than $0.30. Despite the small sale by Techcomp director, I am still quite optimistic of Techcomp given its positioning in the scientific instrument industry.

Firstly, scientific instrument industry is less affected to recession. Secondly, Techcomp is introducing new products (new distribution contracts), having new capacity and developing new line of products (consumables). Thirdly, if Westcomb recent report of Techcomp's competitors is true, then Techcomp is in a sort of sweet spot as it may not face fierce local competition as it is in the mid-market segment and most local competitors are in low-range segment. Finally, my own valuation of Techcomp, based on Westcomb and Kim Eng's estimated earnings growth rates, would be just slightly lower than Westcomb TP of $0.97. Which means that Westcomb TP of $0.97 is still reasonable given its estimated earnings growth rates.


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