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.

Comments

Post a Comment

Popular posts from this blog

A New Light

 A New Light After a hiatus from writing and picking myself up from the issues in my personal life, I decided it will be great to resume writing on a monthly frequency to connect with my inner self, and connect with like minded thinkers and writers.  Writing and investing is my passion regardless of whether I am getting paid for it. Even if no one is reading about it, writing keeps my mind sharp and discussions with others allows me to bounce off ideas with other experienced / astute investors. I am also thankful to have met new friends in person with a passion in investing in recent months, and reignite my passion in what I loved.  I will resume writing and blogging at https://caveatemptorvenditor.substack.com/
Read more

Portfolio Review 2019 - Performance Review

Image
Quantitative Measures Beta = 0.76, VaR = 8.92%, Expected Shortfall = 17.43% Overall - Time = 19.99% Performance Review for 2019 Beating the STI ETF benchmark is not difficult this year. As a market capitalized ETF, STI ETF was a late buyer in the REIT rally, which highlighted the downside of this methodology. Moreover, a lot of retail investors with larger proportion to REITS performed way better than me. My returns were also punished as I averaged down on Silverlake Axis on the recent price correction. I also sold off a percentage of STI ETF to increase my war chest instead of reallocating to US Stocks, resulting in the missing out of the Christmas rally and the year end momentum play. The S and P 500 trounced the returns of most market participants. I am not certain whether the blind money / DCA via index investors resulted into this phenomenon. There is significantly high PE stocks in the index constituents. Stocks could be simply getting more ...
Read more

Everybody has a plan until they get punched in the face

Image
  Everybody has a plan until they get punched in the face As the china central government continued their spree of popping up regulations in all areas of China economy (Minimum wages, living conditions for drivers, 996 working hours, gaming time for minors, wealth redistribution policies, Banning dancing  grannies , the list goes on), the steep decline in the HK/CN stock prices seem to be consolidating and taking a slight breather for now. Although I have stuck to the plan of disciplined averaging down from July till now, it is never easy to watch your favorite picks go cheaper as new rules are being drafted. It is never easy to stick to your convictions based on the research and thesis of the stocks you hold, and believe you are right amidst the market noise and chaos. Everybody has a plan until they get hit. Then, like a rat, they stop in fear and freeze.You can plan all you want, but you’re going to get hit – probably when you don’t expect it - and it’s going to hurt. ...
Read more