Instead of just showing one's portfolio like some of the other bloggers, I thought it is more useful to share the thought process of investing and divesting of one's counter. So here I will start with my first debrief for CSE Global.
- This counter came to my radar after I used SGX mygateway to screen for stocks based on a simple criteria of ROE of 13 and having a dividend of 5%.
- Next I check the FA, didnt spend too much time to dig stuff, just a quick glance to make sure that revenue been growing, operating cash is healthy, Capex is low.
- I noticed that they have more than 1/3 of business in the US, and so I became more interested as I believe their business will be able to tap on the US recovery.
- I also used a quick litmus test using DCF from moneychimp; and realised that it's about $1.12.
- Having done the above, I then looked at the TA. The eclipse zone is where I have bought in to the counter around August. I saw that both the 10MA and 20MA has turned up, and that the 2nd test of the support level was higher than the previous one.
- The rectangle zone basically had reversed all the signals that was positive from my buy and by right I should have sold off but why didnt I. One of the reason is that it did not break the previous support, and also my position is small enough that I dont lose sleep over it.
- My oversight was that I did not add on when it broke out on the right hand side, maybe I was too busy to notice. <<Lesson learnt>>.
7. CSE Global management has announced that 28c of dividend will be given to shareholders as reported in Nextinsight. Looking at 1 - 6, I did not do what some investors will do to try and understand the management, some will say that I was lazy. To me this is beyond me, and I have neither the experience nor the time. Anyway, by doing that, will anyone knows that this was in the pipeline, dont think anyone will know unless you are involved in the decision making.
Related post: Stock scan