Portfolio Aug 07

The headlines the last 2-3 weeks was the sub-prime news in the US. While this was a known issue and my portfolio was conservative with 40% as cash, my portfolio declined about 7% from its peak.

Last month I sold off CSC (43 cents) and Genting (93 cents) which I considered my speculative counters. I was lucky as I sold them before the big sell off. Just last week, I sold off Ecowise (71 cents) and Kian Ann (41 cents) and then later China Milk (1.17) and some Metro (92).

I think CSC has made its run from 3 cents plus to 49+ cents. While it will continue to benefit from the construction boom, its main Shareholder Tat Hong will be eager to cash out after getting their shares at about 5 cents. They sold around 10% of outstanding shares at 45 cents.

With the UK changing their stance on super casinos, (Genting was a strong forerunner with its subsidary to clinch a casino contract), the returns on Genting looks less attractive. I believe Genting is artificially supported now as they are raising cash with rights issue. I think Genting may fall at least 20% after the rights issue.

Sold Ecowise as my investments were small and they spiked up from 62 cents upwards. My gains were about 120%. I also sold of Kian Ann as their PE was no more attractive.

Later in the week, I decide to be even more ultra conservative. I wanted to have some ammo when the recession hits. I sold off China Milk (I did not take into account their financial costs) and some Metro.

YTD Porfolio is now up 37 %.

My portfolio is now 70% cash and 30% equities.

Portfolio is now

SMRT
Metro
TechComp
Darco Environment
QAF
QAF Warrant
Gen Mag
Food Junction