Although I have posted most of my investment decisions on the blog, I have consciously avoided posting the more speculative investments in small cap stocks - largely because of issues I have seen on some stock chat boards regarding ramping ("pump and dump") of thinly traded stocks. Given that one of the purposes of this blog is to create a record of what I have done with my investments and why, I have reversed that policy and decided to post entries on all of my investment decisions goring forward. The two recent acquisitions which I have not previously posted are:
1. Daishomicroline (567): this company makes components for handsets. It recently reported a significant loss due to a number of factors including retooling its plant and equipment to prepare for China's 3G roll out. Given that reports on the PRC telecom companies effectively show significant market growth, Daishomicroline looks like a high return/high risk way of investing in that growth without resorting to margin trading or derivatives. Average entry price is HK$0.46;
2. South Sea Petroleum (76): this company recently announced the proposed acquisition of the mineral rights to a large block of land on-shore in the PRC. My expectation (having observed a number of small cap Australian mining stocks) is that there will be a run up in the share price as and when the company gets closer to drilling the site. My intention is to sell then rather than wait for the results. The acquisition is still subject to shareholder approval. Average entry price is HK$0.055.