Cashing in on SKPetro

The market volume is quite good for the past few trading days. So I decided to take profit on SKPetro and sold my 2000 units at RM2.85. Earning 25.92% or RM1.2k in less than two months is not too shabby huh. In my opinion, there will be more chances to earn short term cash like this in the coming months due to the volatility in the market. Lets not forget that GST is on the horizon.

GST itself is actually a good thing as Malaysia has got a very huge shadow economy. In order to tax this shadow economy, GST is the best choice. You pay when you consume. There is no running away from it. And it is harder to evade tax too with the computerized system. I reckon, people will push forward their big ticket purchases and this will leave a huge lull in the economy after the GST. Retail and property will be hardest hit. Then stocks like Padini will be worth considering. So cash could come handy then. From now on, I will build up my cash holding and invest in dividend stocks whenever possible.

Huat Fund looks like this after this transaction:

Wa si CFA Candidate

Certified Financial Analyst (CFA) is a program that I found out a few years ago and I have always wanted to study it. Finally I got the chance to enroll in a part time workshop locally after returning to Malaysia and I am proud to say that I am a candidate for the level 1 exam in June this year.

CFA emphasizes a lot on the ethical investing. For example, the interest of clients always come first and we should take the last bite of any cherries. As a matter of fact, as a candidate or Charterholder of CFA, I am not allowed to give guaranteed returns for that is not realistic in the real world and thus considered not ethical.

Therefore, the objective of Huat Fund will have to be altered. Previously, I guarantee a 10% annual return on Huat Fund. Now, I will try my best to achieve a 10% annual return on Huat Fund.

Meanwhile, a little update on Huat Fund. Paper gain increases as the market improved over the last few weeks. Bulk of the gains come from Inari. SK Petro is almost near my 30% target and Hovid is finally showing some sign of life after hibernating for the past half a year. I suspect the renewed interest in Hovid is due to the fall in ringgit as most of it's export products are priced in USD. Heck, even Pestech and QL have broken even. Jaya Tiasa remains the problem child. Huat Fund looks like this today:

Oil Price update

Oil price just dipped below 50USD barrier today. It would be interesting to see how far it will drop further. My guess will be not much more and a upwards correction will be forthcoming soon. Although I firmly believe that oil price rise back to probably 70-80USD level, I am not holding SKPetro for long. I am looking at 30% profit at most.

Today Inari finally went ex-right. The day has finally arrived. Hopefully the market will stay good until it reached RHB's target price of RM3.41 .

In the meantime, Huat Fund swings back into paper gain zone:

Bienvenida SK Petro, adious SunREIT

The past few weeks were disaster for the market. Luckily the local funds managed to prop up the market and stop the slide. As I said in the last post, the market will continue to be volatile for the next one or two years. So cash will be handy soon. I think the oil price has sort of stabilized at 50-60 USD level and will not drop any further because if it drops further, even the Saudis will be hurt badly.

During this month, I have actually done some transactions. However, due to the activities at the new company, I did not have time to update till today. Last week I sold off the 5000 units of SunREIT @ RM1.50 and then added 2000 units of SK Petro @ RM 2.25 into Huat Fund.

This is an opportunistic (aka risky) buy and I did not do much research beforehand. All I know about SK Petro is that it is one of the biggest integrated oil & gas services and solution provider. Yes, the oil price has halved in this year but the share price has plunged from RM4.96 to the RM2.00 at one point. See picture below. I suspect the gigantic slide in SK Petro share price is due to the high foreign shareholding too. I see some rebound in SK Petro soon=).

Huat Fund looks like this as of today: