The dreaded China market will finally going to reopen tomorrow in what looks to be a massacre sell-off in the market after what most other markets had experienced in the last few days.
The China A50 futures are currently down 1000 points from the last closing of 13,800 on 23rd Jan 2020 to 12,700, so we should be expecting a trigger 8% to 10% sell-off when market reopens tomorrow. This should then goes on to continue likely over the next few days as we are likely to see margin calls coming in and sell-off accelerating.
For investors who are looking to take opportunity of this correction, there is no better time to get in than probably the last 4 years (last was 2016 China sell-off event) since the entry point is more attractive but given a more cautious outlook.
Still, if you do believe that the Wuhan crisis will one day blew over (which likely will given today’s advance technology and countries better prepared to handle the epidemic), you should be looking at a very well decent return when market rebounds back later.
I am going to share a little bit about my game plan for next week.
This is something that is purely based on my own game plan so please do your own diligence and do not follow me (risk is your own). The game plan might also change and evolve over time depending on how things work out and the amount of warchest I have currently on hand.
1.) Gather as much warchest as possible
In times like this you want to exercise your options on your cash which have been sitting duck for a number of years.
Since the assumption is that cash has been underperforming your larger portfolio for a number of years in the past, it is time to make up for it now by going for extravagant returns (in excess of 20%) to balance out your overall irr you have on your cash returns.
For myself, I currently have close to 70% warchest at the moment after selling off Top Glove last week at $2.51, which helped push the overall portfolio upwards but net off by the sharp fall for Straco.
2.) Switch defensive to higher beta stocks
I’ve sold off my Comfortdelgro at $2.18, which I’ve taken a 3 cents loss on the position I’ve just bought last month.
This is again deliberately done in order to conserve more cash positions to take advantage of the current crisis and to generate higher returns by switching to a higher beta risk stock.
Comfortdelgro, being a defensive in the industry has been relatively unscathed by this crisis so it is not a good idea to continue holding or add them in the portfolio for now.
3.) Going for HK and China stocks
Exposure to HK and China stocks are obviously going to be the real value play here as they are those with the most direct impact to the current crisis, with China potentially shutting down almost all their activities for the last 2 weeks until when things get better.
Because of this, most HK and China stocks are being battered more and some valuations look more attractive since they have fallen more than what their business activities are suggesting. If we truly believe that China can handle this crisis and things would get better in a year, we can compute the earnings and cashflow exposure base scenario and then take the necessary positions from it.
For example, Straco, which has more than 67% exposure to China, have shut down their China operations and attractions until impending instructions from their local government. If we study their business and financials, the impact to this shut down (including the flyer) will be at around $10m of operating cash outflow in a quarter, which translates to about $40m in a year, less maintenance capex. This would translates to about 8 cents/share on the company. What this theoretically means is if the share price has fallen by more than 8% since the pre-crisis, it might be a good opportunity to add them since they have been oversold (Straco has fallen from 67 cents to 56 cents, indicating a fall of more than 11 cents). This is just one way of thinking.
4.) Back to Fundamentals
My entry point for HK & China stocks are also strict by default, which means they must pass the required criteria I’ve set based on the strong fundamentals they have in the first place.
The point I’m making here is that strong companies would eventually bounce back stronger in a crisis while weak companies mostly get weaker being exposed to such vulnerability. We don’t want to pick China companies that has weak fundamentals and are unable to rebound when this crisis ends.
5.) CFD Margins
I will likely be utilizing my CFD margin account again in order to stretch the availability of the limited cash I have on hand.
70% warchest on a 10% margin requirement allows you to utilize up to 700% warchest but it is likely it won’t come to that. If you’ve read my CFD articles in the past, I think a 2.5x to 3x leverage would be relatively safe for as long as your entry price is deemed attractive in the first place (i.e you don’t average down too fast).
Still, a very disciplined approach is required in order to compute the amount of requirements you need to cover the least of the worst scenario.
6.) Look for those companies that require 10% or 20% margins requirement
There are companies which only requires a 10% margins requirement which means you are able to stretch your leverage further by allowing only 10% of your initial funds to buy a position. The leverage will have to incur an interest costs of ~ 3%/year.
There are also companies which are more illiquid and will have 50% or 70% margins requirement. In this case, the requirement gets stricter and it doesn’t allow room for much leverage (for instance, Straco has a 50% margin requirement up until 8,500 shares and 70% margin requirement up until 15,000 shares).
7.) Holding period is short to mid-term (i.e 3 months to 1.5 years)
My holding period is likely to be short to mid term and I want to de-myth the notion that long term holdings will surely do well.
For a number of years, I have always believed that a strict entry requirement is more important than holding long term because there are always a number of factors that could impact the market. Still, if the company truly has a strong economic moat like Amazon, Facebook, Microsoft and alike, then I’d agree that it is better to compound them in the long run.
What works well for you might not work well for me and vice versa so I think this is a debatable subject based on your own criteria.
Final Thoughts
My game plan is very likely to be different from yours but most if not all of us have the very same objective, that is to come out stronger in this crisis than when we’ve started it.
In the next article, I’d list down all the watchlists I am eyeing in this crisis and any of the positions I’ve taken next week.
Thanks for reading.
If you like our articles, you may follow our Facebook Page here
Thanks for sharing.
No many people can stay claim under a big market sell off, but that really is a must-have character for achieving a high return portfolio.
Hi Shan Shu Shu
Indeed, we must stay calm during these moments and reevaluate our positions to see if they can withstand the temporary headwinds ahead.
☑️DO YOU WANT TO RECOVER YOUR LOST FUNDS ON CAPITAL INVESTMENTS, BITCOIN INVESTMENTS, AND OTHER SCAM TRADING INVESTMENTS ??? TAKE YOUR TIME TO READ🔘
☑️ The COMPOSITE CYBER SECURITY SPECIALISTS have received numerous complaints of fraud associated with websites that offers opportunities for Capital Investments, bitcoin investments and Trading on an Internet-based trading platforms. Most Of The complaints falls into these Two categories:
1. 🔘Refusal to credit customers accounts or reimburse funds to customers:
These complaints typically involve customers who have deposited money into their trading or investment account and who are then encouraged by “brokers” over the telephone to deposit additional funds into the customer account. When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancels customers’ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails.
2. 🔘Manipulation of software to generate losing trades:
These complaints allege that the Internet-based Investment and trading platforms manipulate the trading software to distort the Trading prices and payouts in order to ensure that the trade results in a Loss. For example, when a customer’s trade is “winning,” the countdown to expiration is extended arbitrarily until the trade becomes a loss.
☑️ Most people have lost their hard earned money through Scam Investments And Trading, yet they would go and meet fake recovery Experts unknowingly to help them recover their money and they would end up losing more money in the process. This Is Basically why we (COMPOSITE CYBER SECURITY SPECIALISTS) have come to y’all victim’s rescue. The clue is most of these Brokers have weak Database security, and their vulnerabilities can be exploited easily with the Help of our Special HackTools, Root HackTools And Technical Hacking Strategies because they wouldn’t wanna spend money in the sponsorship of Bug bounty Programs which would have helped protect their Database from Unauthorized access to their Database, So all our specialists do is to hack into the Broker’s Database via SQL Hook injections & DNS Spoofing, Decrypt your Transaction Details, Trace the Routes of your Deposited Funds, Then some Technical Hacking Algorithms & Execution Which we cant explain here would follow then you have your money recovered. 💰 ✔️
☑️All our Specialists are well experienced in their various niches with Great Skills, Technical Hacking Strategies And Positive Online Reputations And Recommendations🔘
They hail from a proven track record and have cracked even the toughest of barriers to intrude and capture all relevant data needed by our Clients.
We have Digital Forensic Specialists, Certified Ethical Hackers, Software Engineers, Cyber Security Experts, Private investigators and more. Our Goal is to make your digital life secure, safe and hassle free by Linking you Up With these great Professionals such as JACK CABLE, ARNE SWINNEN, SEAN MELIA, DAWID CZAGAN, BEN SADEGHIPOUR And More. These Professionals are Well Reserved Professionals who are always ready to Handle your job with great energy and swift response so that your problems can be solved very quickly.
All You Need to Do is to send us a mail and we’ll Assign any of these specialists to Handle your Job immediately.
☑️ Below Is A Full List Of Our Services:
* FUNDS RECOVERY ON INVESTMENT AND TRADING.
* WEBSITE HACKING
* CREDIT REPAIR.
* PHONE HACKING (giving you Unnoticeable access to everything Happening on the Target’s Phone)
* CLEARING OF CRIMINAL RECORDS
* SOCIAL MEDIA ACCOUNTS HACKING
☑️ CONTACT:
••• Email:
[email protected]
🔘2020 © composite cybersecurity specialists
🔘Want faster service? Contact us!
🔘All Rights Reserved ®️
KARNA RASA HATI YANG GEMBIRA BERKAT BANTUAN AKI SOLEH
MAKANYA SENGAJA NAMA BELIAU SAYA CANTUNKAN DI INTERNET !!!
assalamualaikum wr, wb, saya IBU PUSPITA WATI saya Mengucapkan banyak2
Terima kasih kepada: AKI SOLEH
atas nomor togelnya yang kemarin AKI berikan "4D"
alhamdulillah ternyata itu benar2 tembus AKI
dan berkat bantuan AKI SOLEH saya bisa melunasi semua hutan2…
orang tua saya yang ada di BANK BRI dan bukan hanya itu AKI alhamdulillah,
sekarang saya sudah bisa bermodal sedikit untuk mencukupi kebutuhan keluarga saya sehari2.
Itu semua berkat bantuan AKI SOLEH sekali lagi makasih banyak ya, AKI
yang ingin merubah nasib
seperti saya…?
SILAHKAN GABUNG SAMA AKI SOLEH No; { 082-313-336-747 }
Sebelum Gabung Sama AKI Baca Duluh Kata2 Yang Dibawah Ini
Apakah anda termasuk dalam kategori di bawah ini…!!
1: Di kejar2 tagihan hutang..
2: Selaluh kalah dalam bermain togel
3: Barang berharga sudah
terjual buat judi togel..
4: Sudah kemana2 tapi tidak
menghasilkan, solusi yang tepat..!
5: Sudah banyak dukun ditempati minta angka ritual blom dapat juga,
satu jalan menyelesaikan masalah anda..
Dijamin anda akan berhasil
silahkan buktikan sendiri
Atau Chat/Tlpn di WhatsApp (WA)
No WA Aki : 082313336747
TERIMA KASIH YANG PUNYA
ROOM ATAS TUMPANGANYA SALAM KOMPAK SELALU
"KLIK DISINI BOCORAN TOGEL SGP HK SDY DAN DLL"
Think I raised about 30% more for warchest from last week sale. How to deploy now is the next hurdle.
Hi Cory
Wow 30% is a lot of recycling. Hope that warchest can be put to a good use now.
Hi Brian, i have been looking into China and HK too in the recent weeks.
Hi Boonhow
Do share with us any of your watch list or buy companies to watch out for 🙂
Hi B, i am looking at insurance companies and property conglomerates in china and hong kong. havent zoom down to any particular companies yet.
We are Ireland based major/Direct providers of Fresh Cut BG, SBLC, POF, MTN, Bonds and CDs and this financial instruments are specifically for lease and sale.We are one of the leading Financial instrument providers with offices all over Europe.
we always deliver on time and precision as Set forth in the agreement. You are at liberty to engage our leased facilities into trade programs, project financing, Credit line enhancement, Corporate Loans (Business Start-up Loans or Business Expansion Loans), Equipment Procurement Loans (Industrial Equipment, Air crafts, Ships, etc.) as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed, Our Terms and Conditions are reasonable.
DESCRIPTION OF INSTRUMENTS:
1. Instrument: Bank Guarantee (BG)/SBLC (Appendix A)
2. Total Face Value: 10M MIN to 50B MAX USD or Euro
3. Issuing Bank: HSBC, Deutsche Bank Frankfurt, UBS or any Top 25 .
4. Age: One Year, One Day
5. Leasing Price: 4+ 2%
6. Sale Price: 32+2%
7. Delivery by SWIFT .
8. Payment: MT103-23
9. Hard Copy: Bonded Courier within 7 banking days.
If you have need for Corporate loans, International project funding, etc. or if you have a client that requires funding for his project or business, We are also affiliated with lenders who specialize on funding against financial instruments, such as BG, SBLC, POF or MTN, we fund 100% of the face value of the financial instrument.
Inquiries from agents/ brokers/ intermediaries are also welcomed; do get back to us if you are interested in any of our services and for quality service.
Name : Finn Walsh
E-mail : Website: http://fivestarfinancecompany.com
Contact Us At [email protected]
Phone number :For call or watssap us +15165910949
Do you need Personal Loan?
Business Cash Loan?
Unsecured Loan
Fast and Simple Loan?
Quick Application Process?
Approvals within 24-72 Hours?
No Hidden Fees Loan?
Funding in less than 1 Week?
Get unsecured working capital?
Contact Us At :[email protected].
Phone number :+15165910949 (Whatsapp Only)
LOAN SERVICES AVAILABLE INCLUDE:
================================
*Commercial Loans.
*Personal Loans.
*Business Loans.
*Investments Loans.
*Development Loans.
*Acquisition Loans .
*Construction loans.
*Credit Card Clearance Loan
*Debt Consolidation Loan
*Business Loans And many More:
LOAN APPLICATION FORM:
=================
Full Name:…………….
Loan Amount Needed:.
Purpose of loan:…….
Loan Duration:..
Gender:………….
Marital status:….
Location:……….
Home Address:..
City:…………
Country:……
Phone:……….
Mobile / Cell:….
Occupation:……
Monthly Income:….
Website: http://fivestarfinancecompany.com
Contact Us At [email protected]
Phone number :For call or watssap us +15165910949
Get Your Urgent Blank Atm Card Now To Pay Your Debt And Start A Good Life Contact Email Via:[email protected]
I am sure a lot of us are still not aware of the recent development of the Blank ATM card.. An ATM card that can change your financial status within few days. With this Blank ATM card, you can withdraw between $2,000-$3,000 -$5, 500-$8,800-$12, 000-$20,000-$35,000 -$50,000 daily from any ATM machine in the world. There is no risk of getting caught by any form of security if you followed the instructions properly. The Blank ATM card is also sophisticated due to the fact that the card has its own security making your transaction very safe and untraceable. i am not a stupid man that i will come out to the public and start saying what someone have not done. For more info contact Mr john and also on how you are going to get your Card, Order yours today via Email: [email protected]
Blogs site.. https://cryptoatmhacke1r.blogspot.com/2020/01/welcome-to-our-blogger-site-is-all.html
Capital Lending and Mortgage Group offer Business Financing,loans to suit your business plan. Get quick & easy access to the funding you need now,Get the financing you need to help your business grow Quickly. Apply Now, Home finance, Business finance,Personal finance, Company finance, Student finance. Quick Approval,Email: [email protected]
Blog: https://capitallendingfince.blogspot.com/
Get A Blank ATM CARD And Cash Good Money/Funds Pay Your Debt directly today in any ATM machine around you anywhere in the world. contact [email protected].. It's 100% guaranteed secure with no worries of being caught because the blank card it's already programmed and loaded with good funds in it, in such a way that's not traceable which also have a technique that makes it impossible for the CCTV to detect you, i am not a stupid man that i will come out to the public and start saying what someone have not done. For more info contact Mr john and also on how you are going to get your Card, Order yours today via Email: [email protected]
WhatsApp contact: +27733798090
The Perfect Media, the best Outdoor Advertising in Singapore.
The Impact of Bigger Billboards: Our New LED Screen Upgrade
We are very excited to announce that we have made upgrades to one of our key sites at Queensway Shopping Centre! The Perfect Media’s LED screen located at the exterior of the building is now 220% larger than our previous LED screen billboard. The Impact of Bigger Billboards: Our New LED Screen Upgrade
2019: A Year in Review for The Perfect Media
With another year and another decade having passed by, let’s take a look back at the accomplishments of The Perfect Media in the past year. 2019: A Year in Review for The Perfect Media
Your Affiliate Money Making Machine is waiting –
Plus, making profit with it is as easy as 1-2-3!
This is how it all works…
STEP 1. Choose which affiliate products the system will advertise
STEP 2. Add some PUSH button traffic (it takes JUST 2 minutes)
STEP 3. Watch the system explode your list and up-sell your affiliate products all by itself!
So, do you want to start making profits?
Your MONEY MAKING affiliate solution is RIGHT HERE
Get A Blank ATM CARD And Cash Good Money/Funds Pay Your Debt directly today in any ATM machine around you anywhere in the world. contact [email protected].. It's 100% guaranteed secure with no worries of being caught because the blank card it's already programmed and loaded with good funds in it, in such a way that's not traceable which also have a technique that makes it impossible for the CCTV to detect you, i am not a stupid man that i will come out to the public and start saying what someone have not done. For more info contact Mr john and also on how you are going to get your Card, Order yours today via Email: [email protected]
Blog Site: https://cryptoatmhacke1r.blogspot.com/2020/01/welcome-to-our-blogger-site-is-all.html?showComment=1582019996117
WhatsApp contact: +27733798090
mr.egg magic singapore's favourite birthday party magician
Dear Mums, Kids and babies!
We are your number one party planner providing both moms and their children with resources to enhance kids birthday party.
Mr Egg Magic has been planning kids birthday parties in Singapore for more then a decade
We are a trusted brand and aims to give the parents the most reasonable pricing for a birthday package with the most professional service.
dark circle & eye bags removal treatment singapore
dark circles — most men are adverse to dark circles as it tends to make them look sick or perhaps even weakens their image of masculinity. unfortunately, it mainly affects men in their thirties and beyond. these conditions can be based on underlying symptoms of allergies, hay fever, acute or chronic sinusitis, fatigue or heredity (regrettably). studies have even concluded that dark circles can be attributed to skin thinning beneath the eyes, and active sportsmen who are exposed to excessive sun exposure are at the highest risk. it can also be attributed to or aggravated by lack of sleep which tires the eyes and leads to fatigue causing poor blood circulation beneath the eyes. no matter what the cause may be, you can still reduce the appearance of dark circles, and in some cases, you may be able to get rid of them altogether.
Carpet Cleaning Service
It is true that even the most worn-out tile, carpets, furniture, rugs and floors can be restored, but you need the right cleaning company for the job. Feesiko offers extensive home and commercial carpet cleaning services in Singapore. We are proud to clean a variety of surfaces to bring back the luster of interiors acroos the area. Not only will your space shine, but it will also be a healthy and inviting place for you and your visitors. Call Feesiko today for your carpet cleaning Singapore.
Please visit: Carpet Cleaning Service
Natural herbs have cured so many illness that drugs and injection can’t cure. I've seen the great importance of natural herbs and the wonderful work they have done in people's lives. i read people's testimonies online on how they were cured of HERPES, HIV, diabetics etc by Dr Edes herbal medicine, so i decided to contact the doctor because i know nature has the power to heal anything. I was diagnosed with Herpes for the past 3 years but Dr Edes cured me with his herbs and i referred my aunt and her husband to him immediately because they were both suffering from Herpes but to God be the glory, they were cured too .I know is hard to believe but am a living testimony. There is no harm trying herbs, Thanks. Write him on WhatsApp on +2348151937428. @dr_edes_remedies deals with
(1)Alzheimer virus
(2)Cancer
(3)HIV
(4)Herpes
(5)Genital warts
(6)ALS
(7)Virginal infection
(8)HPV
(9)Hepatitis
(10)Asthma
Email him on [email protected]
https://dredesherbalhome.weebly.com
LiteMobile Mobile Phone Repair
Litemobile provides repair services for Cracked glass screen replacement, LCD replacement, water damage repair, motherboard repair services and small parts replacement. We also engage in Buyback and Trade in. Brands include Apple, Samsung, Oppo, Huawei, Google, Xiaomi and Realme. We offer high prices for all phones buyback.
Worried about the high cost of repair at the original service centres? We can do it at a very affordable price with guaranteed quality. Our item parts are mostly ready stock that can be repaired within 1 hour.
For motherboard repairs we have a specialized technician in each outlet. Many mobile phone shops sub their motherboard repairs out which could incur longer waiting time. We can do it on the spot. Our technicians are also highly skilled and can repair different tier of motherboard problems which include memory upgrade, dual sim conversion, display ic, touch ic, audio ic, camera ic, GPS ic and water damage.
Please visit: LiteMobile Mobile Phone Repair
Need a Debt Loan To Pay Off Bills?
Take control of your debt today
Available Now Business Expansion Loan Offer?
Do you need a loan to pay off Bills?
Do you need a loan?
Do you need Personal Loan?
Business Expansion Loan?
Business Start-up, Education,
Debt Consolidation Loan
Hard Money Loans
Loan for any thing ?
We offer loan at low interest rate of 3%
Loan with no credit check,
Email us: [email protected]
Call or add us on what's app +91-9818603391