Chasing the stock - OCBC

Ocbc analysis

While others are chasing their love in Valentine's Day, I am chasing the stock OCBC. Despite divesting it back at Nov 2016 after it reaches my calculated fair value, I have kept it in my watch list and monitoring it's news. Unlike the scenario whereby you are chasing an old flame, this is for rational reasons rather than sentimental ones.

2018 14 Feb latest report
Improving fundamentals
Unknown performance of wealth management => improved aum
Increased performance across group
Strong financial position
Continual Share buyback throughout 2017, but subsequent issuance of preference shares to shore up balance sheet
Increased dividend per share
Improved margins
Improved revenue
Improved margin of safety with the recent correction

Caveat
Low free cash flow. Ocbc is literally running low on cash for other activities

I bought at 12.51 2 lots because I am dirt poor and I considered this as an average conviction position size. I will average down if given an opportunity as depressed market prices is contradicted by strong bottom up performance. I will need to follow up with a thorough review of the earnings report throughout the incoming weeks to measure if there is a strong reason to accumulate further during March.

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