Please advise me on my portfolio

twimalasuriya · 1 Please advise me on my portfolio Fri Jul 01, 2011 9:28 pm

twimalasuriya

Senior Equity Analytic

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Age : 47
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Could I have some expert advise on portfolio below.

-----------shares------cost-----current---total cost------Loss %
DIAL.N-----30000------10.64------8.8------319200----------17.29
SPEN.N------1900-----166.49----139.0------316331----------16.51
RICH.N-----22300------12.38---- 11.8------276074-----------4.68
HVA.N------11000------18.03-----15.7------198330----------12.92
HAYC.N------1000-----157.66----137.5------157660----------12.79
FLCH.N-----30000-------5.17------4.5------155100----------12.96
TAJ.N-------2000------65.90-----51.0------131800----------22.61

I started 1 year ago and slowly built this portfolio by roughly
investing 100k each month(total 1.4M) .I can also hold any of these
shares in long term (over 2,3 years).But considering the negative
outlook of DIAL and TAJ , I'm thinking of exiting them and
invest that in a better share.

Could you advise me on cut-loss and reinvest in better share(s) please ?

optimistic · 2 Re: Please advise me on my portfolio Fri Jul 01, 2011 10:39 pm

optimistic

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sorry to see your massive losses. we see this kind of posts from many people nowadays. so its not only you going through a bad time. i'll share my thoughts about your portfolio. but please be informed that i'm no expert. dont go following comments of people blindly. do your own study and invest. people are not going to care how much money you are going to lose.

i would highly recommend you to hold RICH for long term. if you have done a search on the forum, you would come across some important things you should know as a shareholder of RICH. few days ago was the AGM of RICH and CEO is very ambitious about the future.

SPEN. at the time you bought this, it was trading at a PE ratio of 26+. which is quite high. though SPEN is a diversified company and PE ratio for diversified sector is about 35, it does not necessarily mean it should be trading at that rate. SPEN has been steadily falling ever since the share was subdivided last year. EPF/ETF has bought it various level as they are apparently involved in the project of colombo harbor extension and they may think that it could benefit SPEN. i have no comments about it though. personally i wouldnt buy SPEN

DIAL has been stagnated around 8-12 range ever since i've known. dont know when it start moving. if i were you, i would sell it right now and cut my losses.

HVA has gone below its issue price at IPO also. it may come back to previous levels. but not sure how long it will take.

FLCH . another share gone below IPO price. would be wise of you to hold it till the release of 2nd quarter earnings.

in a bearish market, you should be extremely careful when buying shares. you need to make sure that you enter at the right time, make your gain and exit at the correct time. most shares with a solid fundamentals have fallen to 52 week lows. what is dominating the market now are speculative and illiquid shares most of which dont deserve a fraction of the price they are trading at right now. its good to see that you have not chased behind those though. i have not commented about all your shares as i have not done any detailed studies on TAJ,HAYC.

anyway hope you will be able to minimize your losses somehow. on a good note, you have the holding power. so now you only to make sure that money is invested in companies that could break the shackles and those companies that proactively does things to increase shareholder wealth.

Monster · 3 Re: Please advise me on my portfolio Sat Jul 02, 2011 1:48 am

Monster

Senior Vice President - Equity Analytics

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optimistic has given you a good reply. I am no expert but let me tell you some thing about HAYC. You have purchased it when it was stagnated at Rs 150/- level few months back. It was trading Rs 200/- during last year. But the company couldn't sustain the profit due to high cost of raw material. But if you look at previous interim statement, there is an improvement on net profit when you compare 3QFY10. If the company can continue the growth as they did last quarter, you may cover your loss. If you have holding power, hold it.

Slstock · 4 Re: Please advise me on my portfolio Sat Jul 02, 2011 2:42 am

Slstock

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Just await the next few days to see where the market is heading. So do not panic and sell immediately. Most of these stock are trading at low values comparatively to their last year values( am not talkign fundamentals on under or overvalued ).Overall you have selected a decent set of shares.

Friday seems a bit positive so watch for a possible uptrend next week. If the market remain bearish I tend to agree with Optimistic views. Identify the stagnated ones and it is okay to rotate to stronger ones. But be careful sometimes stagnated ones can have sudden break outs as soon as you sell. ( if you sell at the wrong time).

godswen · 5 Re: Please advise me on my portfolio Sat Jul 02, 2011 11:17 am

godswen

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Yah such losses are common among most at this time I guess, If I had the same PF i would only sell DIAL off, but not right now when it go pass 9 atleast so at the lowest loss. If there's a bear market rally in days to come you might get a chance to sell DIAL at breakeven.

twimalasuriya · 6 Re: Please advise me on my portfolio Sat Jul 02, 2011 6:06 pm

twimalasuriya

Senior Equity Analytic

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Thanks all for the kind advice. I really appreciate it.

@optimistic - my loss is actually not as massive as the figures tell. Because I did some trading also, my actual (total) loss is 5.3%.
Your comments about the portfolio are really useful.

@slstock - yes, I'm not going to panic sell any of these. But will wait for the right moment to get rid of the undesired ones.

@Monster - yes, I do have the holding power as I have only invested a small percentage of my (disposable) savings. I could hold these even upto 5 years (or more)

@godswen - Yes , I agree with you on DIAL.

sas · 7 Re: Please advise me on my portfolio Sun Jul 03, 2011 1:51 pm

sas

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Last edited by sas on Sun Jul 03, 2011 9:14 pm; edited 1 time in total (Reason for editing : Because I couldn' get attention of forum members- I want to delete my post, moderators please help me)