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Turtle received $ 888 for December. Portfolio down by 23% but businesses intrinsic value continue to grow at reasonable rate.
Parkson did not disapoint me yet. QoQ EPS grew by 42%. At $ 3.40, annualized FY Q1 '09, Parkson is selling for 15 times earning. Assuming they can grow at the rate of 10-15% for next 10 years, it does not take a genius to conclude they are undervalued today. For Parkson price to recover, all three stars must align - Hang Seng, KLSE and SSE(Shanghai Stock Exchange). Either one of them wobbles, investors knees will jerk.
MUI recorded profit in Q3 '08. They continued to pare down debts, Dec 07 to Sep 08, down from 900 mln to 736 mln. Repaid almost 30 mln in last quarter alone. Expect some pressures on retailing and hotel segments but hoping material deflation to help on the food segment. However, assuming they take next five years to get rid of their debt and assume no profit growth, EPS will be in the region of $ 0.05/share, with 10X PE, it should worth at least $ 0.50/share. It is a reasonable bet to get at least 10% return over a period of 5 years with my cost of $ 0.27/share, averaging down will enhance my return further. So just ignore the noises between quarters when they flip between positives and negatives due to interest charges.
iCapital continued to be undervalued. So no changes to my portfolio.
As long as I continue to use my saving of $ 888 / month to buy stocks, with right stock selections, I believe I can grow at a reasonable rate over a long period of time(This portfolio is only 9-month old, 14 years 3 months to go). Continue to buy at lower level has not done any damage to me(yet). Time and value are in my favor. It is very easy to recover 23% loss when the bull is charging again. You too have 15 years advantage regardless you are 24 or 50 today. Happy investing.
1 comment:
why did you buy icap again instead of say some oil or cpo stocks ?
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