In my fledgling investment hobby, I've made my first paper loss.
The loss is from Sabana REIT. This counter debuted on SGX at 1.00 and closed at 1.02, leaving me with a $30 paper loss (not including my brokerage fees). Oh well, there's still the 8% dividend to look forward to.
If Sabana rises to maybe $1.12-$1.13 (doubt it though), I will sell it off immediately. Reason being I'm not very sold on Sabana's parentage, which is Freight Links, and also the multiple restrictions on Shariah financial products, which is pretty cumbersome.
So for Sabana, my selling point will be $1.12 onwards.
I doubt REITS have a very low support level, since if it drops, the dividend yield is higher, hence the support level should be quite strong.
I also bought my first derivative product on POEMS today.
I bought 2 lots of "CoscoCorBNPeCW110530", KG6W, at $0.485, from the market maker. I was the only buyer of the stock today.
Reasons for buying:
1.) After reading Cosco's 3Q financial statement, it seems to be in a good position, with positive cash flows and increasing revenues and profits. They may also have a few big contracts which will hopefully increase their profit.
2.) 1 lot of Cosco cost $2060 today. Hence, by buying the warrant, issued by BNP Paribas Warrants, i gained exposure to 2 lots of Cosco for a mere $995 incl. brokage fees.
The warrants have an exercise price of $1.68, and is due to be redeemed on 30th May 2011. Warrant:Share ratio is 1:1, hence my break even price (after factoring in all costs including brokerage fees) is $0.51 per warrant.
My short term view on Cosco is bullish, and hopefully I'll be able to gain some profits in the short term, hopefully before CNY.
The theoretical Delta for this warrant is 0.78, hence, for every 1c the counter moves, the warrant will move 0.78c. Hence, for my target profit taking level, Cosco Corp has to move roughly about 20.5 cents up.
If there's anyone reading, would you care to comment on my buying on this warrant?
Anyway,
Target Profit taking level: $0.65
Self Declared Stop Loss: $0.380 (21.8% away from my purchase price- at this price i will lose $260)
Hi,
ReplyDeleteMay I know what kind of investor are you? Growth? Value?
Also, you said that "I'm not very sold on Sabana's parentage, which is Freight Links, and also the multiple restrictions on Shariah financial products, which is pretty cumbersome." Did you research on these before buying into the IPO? I'm not fond of IPOs as I like to see how it plays out in the market for a few years before buying into it.
Anyway, congrats on starting investing so young. I started reading up on stocks and all during NS as well. I started off in this journey by reading "Rich Dad, Poor Dad".
hey FFN,
ReplyDeletethanks for visiting my blog.
Investor wise...I'm not sure. I've read so many books that I'm confused. Robert Kiyosaki is a very strong proponent for leverage, Robbie Burns (author of Naked Trader) is someone who does both growth and value, Paul Mladnovich (Author of stock investing for dummies) seems to be tilted toward growth.
I think the answer to your question is i'm still finding my style.
Regarding the IPO: I guess it was a mistake; I was lulled into a false sense of security when both GLP and MIT netted me very high realised and unrealised gains, in a very short while. I guess i thought that IPO's were "sure win". Maybe so when the market sentiment is good, but I've learnt my lesson this time.
Luckily for me, my mistake is still a pretty good investment. after all, they've announced 8+% pa dividend for the next 2 years.