Switching Works!

Recall from my previous Post that I made a major position switching. I sold 20 lots of OCBC at an approximate loss of SGD 9,200 excluding brokerage fees. I took the sum of money and went into stock M. If you follow Hong Kong stock, you will be able to decipher which counter it is. I bought a total of 26 lots in stock M.

On 22nd March 2017, I sold 5 lots as I need to set aside some money for my remaining lumpsum mortgage loan payment.  On 30th March 2017, I sold another 5 lots at 43.85 and 9 lots at 43.9, this is an one-off example that instead of holding on a stock which is losing money, you can cut loss and switch to another stock which can be either:

1) undervalued
2) special situation trade
3) dividend play

JCprojectfreedom switching

The breakeven point for the switching move which I estimated was at about $42, for the 14 lots (those sold on 30/3/2017) which are about $2 higher than the break even point, I consider that as I had already pocketed the equivalent to the special dividend amount. The special dividend will only be issued on 19th May for $2.2 and normal dividend for $0.8. For information, this counter is currently overvalued.
Currently, this move is already profitable and I have covered my previous losses. Before I sold any of stock M, I have 33 lots. I will let the remaining 14 lots continue to run and see whether it will break through its major resistance. When it is closer to May, I will pare down the remaining 14 lots. Whether I will sell 10 lots and keep 4 lots or sell all will be decided later.
After the sell down, I will switch to another Hong Kong counter. My current HK portfolio is about half a million worth of SGD, HKD is taking a hit recently with the noises in USA due to Trump. I am confident US economy will continue to strengthen and dollars will continue to go up.
12/4/2017 Update
Recently there are geopolitical tensions in the region. I have not seen any opportunity to acquire more shares yet. I sold another 4 lots of stock M at $44.70 and I am left with 10 lots.
Recently, I am reading a few new books and revisit some of the old books while traveling on train to work. I need to revise my strategy after discussing with my mentor.
JCProjectFreedom Switching Gain 04122017.JPG
Till date, net gain about SGD $9k.
 
20/4/2017
I started my new role and decided to cash out a I did not want to look at stocks during office working hours.
JCProjectFreedom Switching 20042017
After selling my holdings in stock M. I decided to shift the money to buy one US stock. The only good thing from this move is I have recovered my capital (excluding the dividend from OCBC) and I am able to shift the funds to other stock counter.
This is the only single counter which I am shifting, the rest of the portfolio remains untouched. I will just hold and wait.
I always believe in fully invested.

 *Past performance does not guarantee future results

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