Medium/Longer Term Stock Portfolio

[aus_trader]

It is a tough balance I agree.

However I've noticed over the years that the more stock I hold
in a portfolio and the longer I hold them the smoother the equity
curve and the less Profit I make.


Shorter term

More profit and I've now flattened the curve and increased profit by
(1) Ratchetting stops. Regardless of direction the trade takes off in
(2) Adding to positions when a pattern or level is taken out.
(3) Ratchetting a trailing stop when multiple positions are on a single trade
(4) Trade a max of 5 Stocks.
(5) Ruthless trailing stops after 3 pyramids in a stock (BUB trade and example).
(6) If a trade is 1R in profit never take a loss stop at B/E
(7) All pyramid trades have the same trailing stop loss.

Wow! I am not going to be that aggressive tech/a, but there is a lot of good points to take note from and I will consider a bit more aggressive style to protect my positions going forward... even though I am aiming for a longer term hold.

 

[aus_trader]

Generally speaking I've been keeping this portfolio to the smaller to medium cap end of the market. Today bought one of the biggest stocks on the asx for this portfolio, in fact it's in the top 100 by market cap.

Company is South32 Ltd (S32), and it is a spin off from BHP several years ago. As shown in the annual report the numbers are improving and it's paying dividends, in fact it intends to pay out 40% of profits as dividends going forward. Another reason I was attracted to S32 was it's Manganese assets. Manganese has gone up this year and from information I've looked at in forums, articles and brokers it's predicted to continue this trend... So although I may have bought a speculative Manganese explorer in my speculative portfolio, I decided to go with the diversified, profitable, dividend paying stock to get some Manganese exposure and S32 has both Australian and South African Manganese deposits currently being mined.



I also paid and applied for NRW shares through the Share Purchase Plan (SPP) letter that was sent to me. At this stage I don't know if any shares will be allocated since most likely applications will be heavily scaled back to raise their proposed $5m from SPP, as the company states:

"NRW reserves the right (at its absolute discretion) to scale back applications under the SPP if the total demand exceeds $5 million."

If Any shares are allocated, I will update the above table with the SPP shares.

 

[aus_trader]

Propertylink Group (PLG) has had a positive announcement on Friday with a larger Property management firm Centuria Capital Ltd (CNI) acquiring 17% of PLG which seems to have caused the share price to gap up on PLG chart.

Last week I also received a dividend cheque from PLG which was nice.

 

[aus_trader]

Few shares got allocated with the NRW Holdings Limited (NWH) Share Purchase Plan. I have updated the portfolio with this allocation.

 

[aus_trader]

A cloud hangs over Shine Corporate Ltd (SHJ) with the class action being lodged against it. It was a good recovery story but I'll keep my capital out of it while the lawyers battle it out with the lawyers. Although SHJ has said they will vigorously defend it, if they lose there may be a big payout to be made which could hit the share price hard.

So while all this is going on I'll be happy to watch it from the sidelines... Just sold it for 61c.

Closed Positions:

 

[aus_trader]

Forgot to update table with the 2c Dividend I received for SHJ. Will update for future posts, as I cannot edit the table above.

 

[Porper]

A cloud hangs over Shine Corporate Ltd (SHJ) with the class action being lodged against it. It was a good recovery story but I'll keep my capital out of it while the lawyers battle it out with the lawyers. Although SHJ has said they will vigorously defend it, if they lose there may be a big payout to be made which could hit the share price hard.

So while all this is going on I'll be happy to watch it from the sidelines... Just sold it for 61c.

Closed Positions:
View attachment 72785

A good example of making a profit with a low win rate. This is what most newbies don't understand. You can be very profitable with a 25% win rate. However you have to cut losses early and let winners run. Most find this difficult to do. If after a year your table looks like the one above you are doing ok.

 

[aus_trader]

A good example of making a profit with a low win rate. This is what most newbies don't understand. You can be very profitable with a 25% win rate. However you have to cut losses early and let winners run. Most find this difficult to do. If after a year your table looks like the one above you are doing ok.

Yes agree, good observation mate.

 

[aus_trader]

Beach Energy (BPT) is in the process of transforming into a bigger company with the recent announcement of Acquisition/Merger with Lattice Energy. It would be moving closer to the larger oil players on ASX such as Oil Search (OSH) and Santos (STO) in terms of market size and quantity of oil/gas production as a combined/merged entity.

 

[aus_trader]

Added to CAJ by buying a smaller quantity today. It has been consolidating for a while but with the dividends on the horizon as announced by the company and share buyback already taking place I think there is further upside in this stock.

 

[aus_trader]

One of the previous stocks that was sold, Mantra Group Ltd is having a good run. Looks like the hotel operator is being taken over at a nice premium. It's a pity that I have sold it already .

 

[aus_trader]

Sold Fleetwood Corp (FWD) for a profit including dividend.

Closed Positions:

 

[kid hustlr]

Surely brokerage is killing you?

 

[aus_trader]

Surely brokerage is killing you?

Surely Not...
I don't post brokerage here as I have a variable brokerage account which has lower fees if I make more trades. So I just take care of the brokerage cost at tax time. I don't have time to check each trade to see exact amount charged as it varies.

 

[aus_trader]

Got allocated shares for Beach Energy (BPT) through the entitlement plan, paid for them a while ago but forgot to check them till I got the statement mailed out to me.

Also having another go at 3P Learning Ltd (3PL). Same story as when I bought them earlier, a global educational software provider that has a good product mix for schools and other educational providers including for much younger children with software programs such as "Reading Eggs", which helps kids to learn how to read. Hoping it will be a better outcome this time...

 

[aus_trader]

Bought two stocks today, an established miner for this portfolio and a cashed up explorer for the speculative portfolio.

Stock for this portfolio is copper/gold producer OZ Minerals Limited (OZL), with an impressive cash balance of $639m and no debt. This should give them plenty of room to develop further mines and continue to pay dividends.

The other stock is a Oil/Gas explorer with more cash in it's books than what the company is worth. Yes it has $352m cash with a market cap of only $319m at current price. To find out more see my speculative portfolio...

 

[aus_trader]

Sold Capitol Health Ltd (CAJ), it's had a nice gain overall.

Closed Positions:

 

[aus_trader]

I may be wrong but I reckon that expectation may have already been priced into the uptrend that has been.
I did hold CDA for quite a while but saw a bit of selling over the last few months so I moved CDA funds to PTM, time will tell if that was a good idea or not

You could be right on this one Boggo. It's been a while and in that time PTM has done well while CDA is stuck in a sideways channel...

 

[aus_trader]

Beach Energy Ltd (BPT) gap down today so I took some profits off this position, since it has gone up a fair bit as well...

Closed Positions:

 

[aus_trader]

Sold a few stocks to release funds for future purchases and two of these (SSM,CDA) have been sitting in the portfolio for a long time without any meaningful gains despite the dividends received. Stocks sold today are: Service Stream Limited (SSM), Codan Limited (CDA) and shares acquired through the Share Purchase Plan for NRW Holdings Limited (NWH).

Closed Positions: