Sunday, February 5, 2012

Turtle Portfolio Update - Feb '12

I have to split my file into 2 tables because it is getting too big now. You need to click on table 1/2 and table 2/2 to see the details.

Added $ 888 saving to the portfolio. Sold MUI after hanging to it for almost 4 years. A reader asked me what have I learned from MUI. If I stuck to my view of the stock is undervalued based on the underlying of its assets and also mission to turnaround, I've the same convictions. But having assets and not able to unlock it by making it to grow more profits and pay dividend, it has no meaning. Most shareholders patience are thinning. Shareholders have been distributing their shares for almost 1 year instead of accumulating them. Holding on to them is expensive!

I guess I was wrong in judging the management on their plans beyond turnaround. In short, I was right on their defensive plan but I was wrong on their offensive plan.

What about other stocks that I sold? Fundamentals of the stocks that I sold have not changed much but overall sentiments remain bullish while the macro headwinds are coming. Having cash in hand will be handy if I want to buy buck at lower price on all the stocks I sold or I can buy stocks are even cheaper than the stock I sold.

The recent market rallies inspired by four things:

1. Very strong counter rally in the European equities.

2. Very stock tech rally. The tech sector has been beaten down for almost a year, there is again a very strong counter rally going on.

3. Less bad macro-economic news have taken to be a very good news.

4. Supportive liquidity. Jim Rogers said there are 40 elections in 2012. So the present governments around will certainly trying to hold things up or window dressing.

What I'm saying is there is a very strong rotational musical game going on right now. The winners are the one that can get 1 step ahead and not when it become obvious to everyone.

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