A new birthday a new day ahead.
I just completed my 36th birthday a few days ago and now looking forward to a brighter future in all aspect of life.
Alright, let’s get down right to talking about the market.
The past two months have been an enormous amount of buying the dip further into some of the already covered Chinese tech stocks.
Regulation continues to dampen the mood of the market and send many leading companies into downward spiral and at one point send Alibaba into a capitulation mode.
The portfolio was heavily bleeding but I took the chance to continue further adding to my position and lowered down my average price for some of the position I was already holding.
First, I added 200 shares of Baba at the price of USD162.
I posted this trade on my Facebook page (do join them if you still have not) on the 19th August close to midnight.
The shares further capitulate more after that but I was already in a full position so did not manage to add further.
I had the chance nevertheless to add a trading position for JD at $62 after its share price decline the night following the announcement of the results but have closed them since at $74. The main position remained at 1,500 shares.
I also added a small additional position for Ping An at ~ HK$60 following the results and we haven’t seen any meaningful recovery yet from this sector. Nevertheless, the company has increased its interim dividend and one which I am looking forward to receive in the next month.
I also took the chance to build a much higher position for ISHARES HSTECH (HKG: 3067) in the past month after it gets lower once again. My position for this ETF is now sitting nicely at the current range with an average price of about HK$14.5.
Last but not least, I also managed to initiate a new position for JD Logistics at $30 for a small position. It has been impacted quite badly during this bad sentiments of the market without really impacting any to the underlying business.
On the sell part, I continue to trim my position in Lendlease REIT as the shares rebounded close to its pre-COVID high now at $0.90. This is part of the rebalancing to also add injection into position which I think has a better risk reward ratio.
Portfolio Updates:
The portfolio was pretty much flat from the previous month as some companies like JD offset the losses from positions like Alibaba and Ping An.
Overall, it was only up because of the additional injection, which is the second consecutive running injection I have done in the past two months.
It was a position with a lot of waiting involved, so we’ll have to be patient before we can see the ROI return.
But, regardless of the outcome, I think there’s a good reasonable chance that it would recover (perhaps not to the peak just yet) back to consolidate before we re-focuses on its earnings and growth outlook.
Stay safe and healthy and be cautious about going out. If need to, do it safely!
And remember to sign up for the DLC Tournament if you have not done so or you can do right away in the link here. It’s gonna be interesting this year!
Great to see your growing portfolio. Agree with your optimistic Assamese of the Chinese tech stocks and I admire your strength of conviction !
Best wishes
Garudadri
Wow, it seems like a heavy concentration on China.
Be greedy when everybody is fearful. Though CCP seems not fully done with wealth redistribution.
Do you think China companies will operate like not-for-profit model in the future?
Hi Jack
No, I don’t think that’s the end goal for the Chinese government. They want wealth community distribution but at the same time they also want to conquer the world by becoming world’s number one They will not be able to do it if they turned the major Chinese companies into a not for profit model.
But they just asked Tencent to not focus on profits…
They also said they wanted to control property price since 2008…
Hey Brian,
Just wondering.. how much interest would you be paying per month for your leverage positions?
Hi Michelle, it depends on the type of margin leverage that you are using. CFD usually charges ~3%/annum while other margins or balance transfer may be cheaper at about 2-2.5%.
Hi Brian, will you be able to share updates on your average price for chinese stocks? I am interested to understand how you do the DCA. thanks.
Hi Ronald
Typically my DCA works depending on the amount of resource I have. So I will usually start off with cash and midway when I wanted to add more positions but resource is running out, I will convert it into leverage with margin play. There are a few leverage margin products out there which investors can utilize depending on the magnitude of the risk all the way from a DLC, CFD and Options.
Hi Brian,
https://seekingalpha.com/article/4456807-alibaba-we-were-right-on-the-price-prediction-whats-next?utm_campaign=facebook_post&utm_content=article&utm_medium=social&utm_source=facebook
Just came across this article. Thought it made pretty good sense. What do you make of this since Alibaba is your largest portfolio. Just want to hear your thoughts. Thanks!
Hi Pauline
I believe since we are very near to the next support level of $130, we are unfortunately likely to visit them from a technical perspective sooner or later. It’s good in a way since the stock can finally find a way to bottom out and then reverse higher.