After reading SKC's thread with interest I am considering using this thread to record my investments. To this point in time all of my investments have been limited to my SMSF, recently I have applied for a line of credit and intend to invest with a goal of achieving a passive income through dividends and capital gains in the long term.
Robusta fundamental, leveraged investments
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So it won't be paper trading? I'll definitely be watching with interest. Best of luck!
If no one can think of any issues other than potential embarrassment I plan to document my investments, cost (interest, brokerage ect) and income and losses.
I imagine it will be a fairly booring thread as I intend to employ a very low turnover strategy and will probably update monthly unless investments are bought or sold.
skc
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Good stuff. There are quite a few benefits of keeping a thread like this in the public arena. Quite a few times I started writing a potential position, only to discover that things don't stack up. That is, I couldn't convince myself (and my audience) that it is a well thought-out, good risk/reward investment. Other times it led me to do more thorough research or make more sensible assumptions.
Keep it honest, real and open. And I am sure you have a lot more to gain by keeping a thread like this.
Good luck.
skc
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Thankyou skc, hopefully by posting my investments it will keep me from speculating - I have been known to get a bit excited
Many of your stocks are on my watch list.
I hope they don't drop to your buy level!
NEW INVESTMENTS
TSM - Thinksmart
Had my eye on TSM for a while now and hold in my SMSF, decent rising ROE and the ability to increase revenues and profits witl little extra capital required make me happy to have TSM an my largest holding. The new business model with less invome upfront but 25% extra profit per customer over the lifetime of contracts should increase profits.
Many individuals and businesses have trouble funding equipment particularily here and in the UK. I would put the main competitor in Australia as TGA.
MCE - Matrix Composites & Engineering
My largest holding in my SMSF with a stella performance and IMO more to come. Heaps of off shore oil and gas projects funded and MCE is in a perferct position to profit.
Portfolio Position
Starting line of credit $30,000.00
Bought
7,142 x TSM @ $0.66 = $4713.72
546 x MCE @ $6.95 = $3797.70
Brokerage Paid = $20.10
Lenders Mortgage insurance $667.81 paid
Available credit $21,468.48
I will be making small regular cash contributions to the LOC to speed up the process of becoming cash flow positive.
TSM - Thinksmart
Had my eye on TSM for a while now and hold in my SMSF, decent rising ROE and the ability to increase revenues and profits witl little extra capital required make me happy to have TSM an my largest holding. The new business model with less invome upfront but 25% extra profit per customer over the lifetime of contracts should increase profits.
Many individuals and businesses have trouble funding equipment particularily here and in the UK. I would put the main competitor in Australia as TGA.
MCE - Matrix Composites & Engineering
My largest holding in my SMSF with a stella performance and IMO more to come. Heaps of off shore oil and gas projects funded and MCE is in a perferct position to profit.
Portfolio Position
Starting line of credit $30,000.00
Bought
7,142 x TSM @ $0.66 = $4713.72
546 x MCE @ $6.95 = $3797.70
Brokerage Paid = $20.10
Lenders Mortgage insurance $667.81 paid
Available credit $21,468.48
I will be making small regular cash contributions to the LOC to speed up the process of becoming cash flow positive.
I am not sure NewOrder. This thread may have long periods with no trades but I am thinking of updating at least monthly.
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Scroll up to the start of the thread, click on the "Thread Tools" drop down menu and then select "Subscribe to This Thread". On the next page, select your subscription options, then click "Add Subscription" and you're done.
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NEW INVESTMENT
CCP - Credit Corp Group
These guys specialise in debt collection, they buy overdue debts from banks, credit card companies etc at a discount and collect the payments. The minimum they budget to make on a 6 year period on purchased debts is 230%.
Once again a simple business model with the ability to increase revenue and profits with not much extra capital required. CCP also has the ability to retain a lot of equity (low payout ratio) and earn a high return on that equity.
ROE is a little low at the moment (otherwise my investment would be larger) but it should be rising in the future.
I will keep a eye on FSA because they seem to be gaining market share but probably at a lower margin to CCP.
Portfolio Position
Starting line of credit $30,000.00
Bought
7,142 x TSM @ $0.66 = $4713.72 (25/07/11)
546 x MCE @ $6.95 = $3797.70 (25/07/11)
853 x CCP @ $4.48 = $$3821.44 (26/07/11)
Brokerage Paid = $40.05
Lenders Mortgage insurance $667.81 paid
Available credit $16,959.28
All ords @ 25/07/11 4603.80
I do have one order in the market half filled but after that waiting on reporting season to find more value.
CCP - Credit Corp Group
These guys specialise in debt collection, they buy overdue debts from banks, credit card companies etc at a discount and collect the payments. The minimum they budget to make on a 6 year period on purchased debts is 230%.
Once again a simple business model with the ability to increase revenue and profits with not much extra capital required. CCP also has the ability to retain a lot of equity (low payout ratio) and earn a high return on that equity.
ROE is a little low at the moment (otherwise my investment would be larger) but it should be rising in the future.
I will keep a eye on FSA because they seem to be gaining market share but probably at a lower margin to CCP.
Portfolio Position
Starting line of credit $30,000.00
Bought
7,142 x TSM @ $0.66 = $4713.72 (25/07/11)
546 x MCE @ $6.95 = $3797.70 (25/07/11)
853 x CCP @ $4.48 = $$3821.44 (26/07/11)
Brokerage Paid = $40.05
Lenders Mortgage insurance $667.81 paid
Available credit $16,959.28
All ords @ 25/07/11 4603.80
I do have one order in the market half filled but after that waiting on reporting season to find more value.
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Nice thread.
So far you have picked three of my holdings!
I too really like CCP. Future prospects are great...theyv been busy opening up in the Philippines this year. Management seems intent on keeping up margins (similar to ORL - who have refused to discount),which will provide long-term benefits.
So far you have picked three of my holdings!
I too really like CCP. Future prospects are great...theyv been busy opening up in the Philippines this year. Management seems intent on keeping up margins (similar to ORL - who have refused to discount),which will provide long-term benefits.
skc
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You are holding the same stock in your Super and also your personal LOC. Do you have an overall risk parameter / boundary for a company?
Wow looks like we are looking for the same sort of things in companies. I also have a eye on ORL - just not cheap enough yet.
No not really I would probably not let a company get past 40-45% of my total exposure but if I could buy for example COH at half its current price, never say never.
I am not a big fan of diversification, if my top pick is at a great price and with great prospects I would rather buy more of that than my tenth favourite pick at a less great price with average prospects.
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I think most, if not all value and/or long term investors, would find value in similar companies. I think it's in Roger Montgomery's book that he has the quote that Buffet and Munger would come up with different figures, but almost always the same conclusion about a business.
skc
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I wouldn't be too adverse to doing that with equity but I'd be careful doing so with leveraged LOC. No one position should take you out of the game (e.g. margin called).
