Stock Sniper's Portfolio For August 2017

 

Read about Stock Sniper's Portfolio HERE

 

 

 

Stock Sniper's Mock-up Portfolio was initiated on 31st Jul 17 with the additions of:

1. Goldpac based on the initial analysis done Is there Gold in Goldpac? 

Reasons for purchase:
- Relatively low valuation compared to its A Share peer despite its no.1 position in the financial card industry in China 
- Strong financial position, high net cash per cash
- High dividend yield


2. Hopefluent based on the initial analysis Co-founders cum Directors Spent 1.72x of Their Annual Income In Just One Month (July 2017) to Buy Its Shares. Is There Hope in Hopefluent?

Reasons for purchase:
- Relatively low valuation compared to its A Share peer
- Strong financial position, high net cash per cash
- Potential share price catalyst from listing of its property management company
- Significant insider buying
- Strong financial position, high net cash per cash

Quick Review of News during the month:

Goldpac:
- Half year results was announced. Revenue was relatively flat at 1.4% growth which could signal the end of declining trend. However, the net profit was hit by a huge exchange loss of RMB20.3M due to depreciation of USD denominated bank deposits against RMB. Excluding this impact, profit would have increased 21.5% compared to same period last year.
- Mr Market did not like the headline loss and the share price retreated rapidly, and yes, my maiden share purchase for this portfolio suffered an unrealized loss (haha)!
- The small consolation was that Goldpac maintained and paid an interim dividend of HK 4cts.
- I plan to do an analysis of this half year results before deciding if any action is necessary.

Hopefluent:
-  Half year results was announced as well. Revenue grew 29% while profit attributable to shareholders grew even faster at 31.6%. Interim dividend was increased 150% to HK 4.5cts.
- Mr Market liked this news and the share price was moving up quite rapidly and I liked the part on dividend :)
- The husband and wife co-founders continued with their share purchases.
- Same plan, will need to do an analysis of the half year results to decide if any action is necessary.

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