Tuesday, January 21, 2014

Portfolio movements

So far this week I have made four investments.

The first was an attempt to repeat last weeks small trade on China Starch (HK:3838). When I saw a small quantity being offered at HKD0.221 with a gap to the next seller asking HKD0.226, I took bought at HKD0.221 with the intention of reselling at around HKD0.226 for a quick small profit. Unfortunately, the market did not co-operate and the share price has dropped back to HKD0.212. I will have to wait a while for this one.

The second investment to purchase some shares in Grange Resources (ASX:GRR). Grange is a smallish iron ore producer which currently has no debt, a significant amount of cash and a single operating mine which is producing excellent cash flows at current prices. The unfranked dividend yield is above 10%. They also have a 70% interest a second much larger project which is intended to be funded by selling some of its interest to a new investor. I paid AUD0.26 per share.

The third investment was to convert some Hong Kong dollars into Australian dollars (at AUD1.00 = HKD6.8722). I am taking a close look at some of the larger Australian mining companies (e.g. BHP, RIO and FMG). They theory being that, not only has the AUD depreciated significantly, but the mining shares (which benefit from a weaker AUD) have not recovered much and are getting better prices than were anticipated by many. If the AUD weakens further then (in theory) mining companies should benefit somewhat.

The forth investment was to buy a few more shares in CNOOC (HK:883). CNOOC has been a disappointing investment and one that (at current prices) shows only a modest return. Hoping that today's sell off was over done and/or we will see a short term bounce, I added a few more shares to the portfolio at HKD13.20 per share.

As an aside, I am slightly kicking myself for missing an opportunity to sell my shares in K. Wah (HK:173) at above HKD7.00 yesterday. The difference between that and the current price of HKD6.25 would have been quite significant.

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