Wolf Money(portfolio update end april 2021)

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Portfolio as at end of April 2021.

1.) Nam Lee Pressed Metal

2.) Pico Far East (hk.0752)

3.) Cash

*Stocks are not rank in accordance to capital invested. 

*Just for sharing. Not an inducement to buy or sell.

Commentary

Good day everyone. I hope everyone is well. After a month of food and book recommendations. It is time to get back to the core agenda of this blog. The investment side of thing. 

In the month of April I had reduced my portfolio by slightly over 50 percent. The two main reasons for the right sizing. First I am queasy with the elevated stock price around the world. The US market hasn’t experience a 10 percent correction since last year. The second reason is more personal I had been pouring more money into the stock market over the past 6-12 months than I had been for the past 6 years. It is a deliberate intention of mine to take a more defensive stance to reduce market exposure by reverting back to the mean. I had decide to take some profit off the table. Some profit goes into reducing my mortgage. My 2.6% interest loan has somewhat become expensive capital to be using for investment given the extremely low borrowing rate currently. The stock market rally over the past 12 months has been god sent. If someone had told me we are going to have a covid bull run at the height of covid panic last year, given the serious downside risk created by covid 19 on public health, economy and jobs. I would grab the bull market rally any day with both hands in great gratitude. The recovery in stock price has been nothing short of spectacular. It is what I described as “get out of jail free monopoly moment” for the stock market. The easier money had been made. Now the harder money awaits.....

I had further increased my exposure in Pico Far East which I under invested previously. I could be more comfortable with my position if the company doesn’t come out with a nasty profit warning toward end May or early June. All indicators point to a recovery in their China business which is a substantial revenue and profit contributor. World expo in Dubai and Tokyo Olympic are key revenue earner for Pico this year.  Finger crossed for better performance 🤞. 


(Refrigeration container frame, source Nam Lee Pressed Metal)

Key event for portfolio in the month of May. Nam Lee Pressed Metal will be reporting their 1st half 2021 result by early May. It will provide me with some clues on the health of their business. I expect the company to show a marked improvement in financial performance given the low base achieved last year amid the covid lockdown in Singapore. Net profit plunged 97% to 125k last year. I will be observing their outlook for refrigeration container frame business which I coined it in my earlier blog as a potential covid 19 transportation play. I am looking out for better performance by them this year.

Given the elevated stock market, would there be a repeat of an old stock market jingle “sell away in May and go away in June”? Seriously nobody knows but I prefer to stay behind the defensive wall. 

Do let me know if you have any suggestion or feedback via email. I wish everyone a profitable month ahead wolfing around for bargain companies. God bless. Thank you.


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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for information only. Buyer beware,do you own due diligence.


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