Post Page Advertisement [Top]

- - Portfolio Transactions (November 2021)

Updates for my Portfolio for November 2021

For my side project, I am testing a few variables in upscaling to a larger batch and probably a final product. Seems like I would be able to progress loads faster now.
My new environment seems to be reasonably paced, been feeling tired because of the shift cycle. Hope to be able to contribute more soon.
  • Buy Stone Co at 27 and 20
    • Reasons
      • Stone Co is a Brazilian digital payments company, I guess something like Square. This company is Brazil's first non-bank merchant payments company providing solutions for electronic commerce in-store, online and mobile channels (omnichannel). Their clientele are of various sizes and Brazil is a developing nation and electronic payments are getting started.
      • So, initially I was selling Stone Co calls at 27 (~47x PE, historical average was about ~94x and the PE support was about ~50x) each. I noticed the opportunity pretty much near the expiry of the option and on the last day, the bad news broke out (bad economy, inflation fears and stuff), causes prices to plummet. 
      • So hurriedly (a huge mistake), I decided to sell another call at the next price support, which is 20.  It is said that with strong selling pressure and volatility comes with high premiums, but it was not the case. It was a Friday, so the market closed. 
      • The next PE support was about 25x which works out to be about $14 seems like prices have not (at least not yet).
      • Probably better to be patient and wait next time to fine tune my entries.
  • Buy Splunk at 137.9
    • Reasons
      • Splunk is a leading software company that makes software for searching, monitoring and analyzing machine generated data. Some of its customers are Coca Cola, Hyatt, Tesco, Zoom, Intel, etc.
      • Splunk has recently switched to a subscription based model which will hit revenues but seems like some potential for time to allow the subscription revenues to reach to the old levels prior to the change (business model transition)
      • Splunk has a relatively low Price-to-Sales ratio of below 10 and is much lower than the likes of Datadog, Elastic, Dynatrace.
      • I would expect it to grow its recurring revenues over time and the market would rerate this counter.
      • Note that this position is more speculative and forms a smaller part of the portfolio.
      • That being said, I totally missed the recent low because I forgot that my position sizing was kinda small 



  • Sell Keppel Pacific Oak at 0.8
    • Reasons
      • I have a rather large exposure to the US market and Kep Pac Oak has similar tenants, so trying to diversify.
      • Interestingly, the REIT has been able to hold on to tenants and maintain DPU compared to Manulife REIT despite having lower tier properties.
      • In view of rising interest rates and WFH trends, I am concerned and at the current stage Kep Pac Oak seems to have limited growth moving forward.
      • It is sorry to see that really nice juicy yield go away, however, this move will allow me to take profit and recycle capital to other counters and hopefully add more to other existing positions.
 
That's all for my money for now.

I have place a small % of my net worth in crypto-assets.

Conclusion

My portfolio YTD is now 35.7%, with the long term XIRR at 10.70%, slightly beating VT's performance, but that's probably due to leverage.



My cash position is currently at about 7%. Have to wait for cash position to accumulate while waiting.

Related Posts:

Tags:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Bottom Ad [Post Page]