Mid-Feb Update

Hi all, mid-term exams are around the corner, so there hasn't been much time for the blog. I am dropping by just to give a quick update.

Recently, my trading account has seen a lower number of trades thanks to the bleak market outlook, economic volatility, and my current experimentation with different methods of screening the companies.

However, I would like to highlight a recent trade I have made on the company: HanKore Environment Tech Group Ltd. Touted as one of the up-and-coming counters on the market, I briefly checked its financials before looking at some technical indicators. Even though MACD showed the beginning of a downtrend, I noticed that 3/14-period Stochastics showed a current undervaluation. Volume traded throughout the day was also strong, with a large number of buyers entering the market to buy at the ask price.

I decided to enter the market based on these factors for a short term investment. As of now, I have sold off all shares of HanKore through a contra trade, and my returns are as follows:

Return on HanKore: 9.01%
Total Cumulative Return on Portfolio 2014: 13.24%

Update: I have also sold off all Ezion shares to make a positive, but negligible return. I have decided to relinquish ownership of the shares for a number of reasons:
1. The stock price moves too slowly for my personal liking.
2. I bought at a high. While there is still much potential upside based on valuation (even those done by brokerages), Ezion's share price has had a track record of not being able to meet, or even come close to the target.
3. Market outlook is bad. Being an oil & gas company, Ezion's share price is very likely to be hit hard by a depression, or a poor global economy. I will revisit Ezion when such a time occurs (forecasted to be this year or the next).

A Goal, a Portfolio, and some Info

Time for a quick update!

Currently my aim is to earn 2 million dollars by the time I hit 40 years old. Seems crazy doesn't it. But I'm gonna try. After working out the math, I would need to earn close to 25% on my initial investment, year-on-year for the next 17 years. And judging by how bearish the market looks at this point in time, its gonna be a rocky start to this new year.

Moving into the new year, I am invested into three different sectors. The Water Treatment industry, the Semiconductor industry, and the Oil & Gas Industry. My portfolio make-up is shown below:

I have reduced my holdings in United Envirotech (UEL) to 0 recently because I decided it was time to exit the market and realize my gains. These lots (1,000 shares) were accumulated between August and November 2013, and at time of sale, have produced a return of 16.44%.

Return on UEL: 16.44%
Total Cumulative Return on Portfolio 2014: 11.75%


For those interested in why I was/am invested in UEL:

The Water Treatment Industry (WT) in China is huge. China is home to huge network of rivers and inland water bodies, including two of the most notable rivers in the world: the Yangtze River, and the Yellow River. With this knowledge, one would think that water would not be China's biggest problem. However, thanks to deep-set practices that aggravate water pollution, along with the booming industries generating huge amounts of wastewater, China's government needs to do something about it. And they are.

Based on China's 12th Five-Year Plan (2011-2015), the Chinese government has increased the total projected investment into water treatment to RMB 430 billion. That works out to 17% more than the 11th FYP. Because of this, WT companies in China are projected to flourish in the wake of this wave of investments. UEL is a leading company in the WT Industry, and is and has been doing increasingly well over the past few quarters/years because of this strong demand for water treatment. I'll keep it short for now, but you can find more information in the links below.

Do read this article for more background information on China's WT industry. Article Here.
For more information about UELs financial health, Click Here.