MengXi's  Instablog

MengXi
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University of Waterloo engineering student.
  • Portfolio Update - August 2013 0 comments
    Aug 16, 2013 9:27 PM

    To start off, yours truly here, decided to foolishly invest another $20000 of his money into the giant casino known as the stock market. Except this time I decided to go with Interactive Brokers, as they have a much lower commission structure ($1 vs $5 for a typical stock trade, $2 vs $10 for a typical option trade). This gives me a lot more flexibility should I ever decide to hedge my portfolio with options, as well as borrow on margin. However this does come at a cost of $10 / month fixed charge, which eats into the total return a bit.

    Looking at the performance of my two stock accounts,

    (click to enlarge)

    I have now added exchange rate into the equation as I noticed CAD/USD exchange rate changed by more than 10 cents from 2011 to 2013. As a result I have a lot more catching up to do than previously thought.

    The recent stock market sell off definitely has impacted my portfolio to a large extent, however it is still too early to call as things are very volatile at the moment.

    Moving on to holdings,

    (click to enlarge)

    (click to enlarge)

    I have sold all of AGNC pre-earnings, this was due to the fact that I wasn't sure how bad their book value losses would be, and decided to not try my luck, since I know very little about the agency MBS industry. However I initiated a small position in my IB account after earnings, as the book value decline were not as bad as people feared, as well as the management being a lot more defensive in their hedging strategies.

    In terms of LINE, well it was kind of pointless as I bought and sold at the same price. After a more extensive review of their accounting, I agree with all the short sellers than LINE is a disaster waiting to happen.

    GTAT has contributed to most of the gains in the portfolio, however I do not expect this to last long, as GTAT fluctuates with Chinese solar stocks, which can go up or down 10% in any given day. The fact that GTAT started to sell its solar wafer equipment is a nice bonus, but the real deal is the sapphire screen for phones, we'll see how that plays out end of 13/beginning of 14.

    BBRY on buy out rumors again, however it seems like its real this time, hence I actually increased my holdings. Let's see if Mr. Watsa can cook anything up. I fully agree at today's prices, good business or not, BBRY is about as bargain basement as it can come.

    SZYM the recent conference call is like any other conference call, "we are making progress and revenue is on the horizon". If management does what they promised, revenue should flow in next quarter and things should ramp up.

    Some new positions:
    MYL the generic drug maker, they gave out some pretty aggressive EPS guidance in their analyst day. With Europe in the dumps, generic sales should pick up and continued EPS growth should follow. Holding this one for the long term, let's see how it plays out.

    F the car maker. Well I've been keeping an eye on this since 2011. Never pulled the trigger until now. F at this point probably will track closer to the general stock market since their revenue depends so much on the macro condition. Its a small position so if they surprise to the upside, great, if not, its not the end of the world.

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