MUSX --> Greenergy

I have been constantly looking for stocks to trade, either for value investing or for some punting.  Even before when I was just simulating my trades, I have been playing around with MUSX since it has a little bit of predictability on its share prices.  Short term trading is possible since the price of the shares are not that volatile.

What piqued my interest with this stock is on its future plans as a company.  Based on recent disclosures, MUSX is already divesting from its semiconductor businesses, and is actually changing its name from Music Semiconductors to Greenergy Holdings, Inc.  The new name seems to be connected to renewable energy.

I am thinking, at current levels, the stock may be so undervalued given the potential of the company's rebirth. If one buys at 0.067, even small amounts of increase would give tenfolds of profit.  Interesting...

I just don't know what are the possible effects of a high free float level (96%).  This lessens the financial flexibility of the company in terms of equity issues.

Below is the chart for MUSX:

Note that the MACD and RSI show a bearish divergence pattern.  I just don't know if it would hold true in the future.  I wish I could have insider info on this. :D

February 2011

Been busy these past weeks due to midterm exams.  At least for now, I am into longer terms of trading since guarding the price movements of stocks everyday is just time-consuming.

Ms. Market at the start of March generated positive gains in my portfolio.  My February month-end report should have been on a stalemate (could've been more negative) if not for the last minute rise in prices.  Portfolio moved up by 4.14% despite actual cash loss at -0.75%.  My only sale trade for February was on the repositioning of my losing MPI stock, which I placed into PCOR for some oil play.

Here is a quick rundown my current holdings:
Core:
AP (22%) - I'm very happy now with AP because of its very very strong earnings, leading to generous cash dividends with an ex-div date this March.  I love its 1.32 per share, a 4.4% dividend yield!
EDC (21.5%) - Still struggling with this one as current prices are still below my cost.  Earnings report scheduled to come out this March 25!

Momentum Play:
AGI (16.8%) - Was able to average down once, bringing down my cost.
DMC (12.14%) - Seems to be stronger than AGI due to strong developments with Maynilad and DMCI contracts.
PX ( 11.39%) - Talks with MA/MAB for some mining projects plus an increase in Gold price led me to this decision of buying this stock.
PCOR (5.18%) - Bought this stock for some oil play.  Market generally went down due to crisis in the Midwest, which may affect oil supply in the future.

Long Term/Dividend Play:
AMC (6.36%) - Despite growth in revenues and dividends in March, this stock still sticks around the 13 peso range.
FDC (4.47%) - Quite a shame for this stock as it went down as much as near -30%!  I'm still not quite sure if I should buy more of this, perhaps if there are still available funds to infuse.  Probably needs more research on the sugar industry, East West Banking (possible IPO), and the secondary offer of shares in order to increase its outstanding shares.

Mining Play

I did this before with ORE and was quite successful with it.  Lately, MA has been enjoying substantial increase on its prices due to the news that PX has been interested on one of its mines.  I am tempted to get some MA shares because of this, but as soon as PX had a mysterious drop yesterday, PX seemed like a bargain for me.

I was able to buy near the low at 14.3, with ATR being a major seller this morning.  Despite the positive news on the earnings of PX and the nearing ex-dividend this March, major brokers (foreign) went out and shifted towards AEV.  The MCPI has reportedly adjusted the weights of involved stocks, and AEV greatly benefitted from it.  Meanwhile, ICT and PX bore the decrease in prices due to the lessening of their weights.

I used my "sideline" money in buying PX and some of PCOR (oil play).  I've got to replace this ASAP.  Possible sources would be from AGI (good thing prices went up for a gain) and DMC (slightly negative).

January 2011 Performance

I have increased my equity by 50% at the start of this year.  Though I am becoming more confident with myself as a trader with at least a few months of experience, the market isn't as good as it was 2 years ago (right after the subprime mess).

I will try to remain 20% (equivalent to my max hold to 1 stock) in cash on hand as my revolving fund.  One that could help me go in and out of a stock for better market timing.  Whenever I plan to shift my funds from one stock to another, this revolving fund would act as proxy and should be replenished as soon as I have finished buying and selling the 2 stocks.  This should add discipline to my trades.

For my first month of trading this year, it has been a tough one with recurring market declines.  Some even call it as the January effect.  Counting in the 25% increase due to added infusion of funds, I was able to get cash profits of only 0.56% of my total portfolio. 

January was a month for the 3rd liners, basically composed of speculative stocks.  At least I had a small bite with the "trash" play when I had a 1-day trade of ELI, and was rewarded with a 14% stock return.  However, I made a costly mistake with MPI, buying at its high.  I did some cut loss (not yet finished), which eventually narrowed down my month's profit margin.

Total equity dropped by 8%, mostly because of my hold on MPI and FDC.

Summary:
Cash gain:  0.56%
Portfolio gain:  -8%

Slowly but surely, I am trying to practice more with my TA with the use of different indicators aside from the common MACD and RSI:
DMI
STS
RVI
CCI
Parabolic SAR

I hope I could get better with this.

Here's a look on the latest chart on the PSEi.

Cliffhanging

Egypt is all over the news because of its own version of a People Power happening against its decades old President, Mubarak.  The Global financial market remains to be shaky as it awaits positive development over the situation.  The PSE has not been exempted from the uneasiness, as the market has dropped down by 88 points.

Surprisingly, my portfolio wasn't greatly affected as most of my holdings remained intact.  MPI, though currently at a negative, did not go down; in fact it showed strength up to the close.  As for my other "loser", FDC, it was bought up by ATR at the close (thus, just a temporary rise).

For today's trade, I was able to sell half of my MPI as it went up to 3.64, transferring risks on to EDC which went down to 5.77.  MPI has been showing strength these past few days, but I really need to start transferring my hold on to the more reliable stocks which I believe in.

For AGI, I should have sold earlier (last Friday) as my indicators already show short term weakness.  Will have to wait again when CCI reaches its top for a sell.  COL has released its latest study on AGI, and has increased its tp for this stock.  The increase in AGI's value is heavily attributed to its gaming business such as that of Resorts World, which has just opened last year.  Industry comparisons also favor AGI over its competitors (i.e. AC).

Watchlist:
One of my favorites: SCC

I should buy once it breaches towards the lower Bollinger bands.  Traded strongly on a weak market yesterday.

FDC Countermeasure

FDC broke my heart, but I still believe in the fundamentals of this stock.  The problem is that it has low float, thus can be easily abandoned by impatient short term traders.  As a consolation, at least I didn't put much yet on this stock and so there is still room to add for more, if I really choose this to be one of my core holdings. (Current core: AP and EDC).

Here is the 1 year chart where I may plan to buy more shares once an STS buy would be triggered.

Reasons why I still believe in this stock:
1.) Undervalued, with current P/E at 10x.
2.) Impending IPO for one of its earning subsidiaries: EastWest Banking.
3.) FDC plans for a 2PO but would not want to sell at current low prices.  This 2PO is needed in order to increase the company's float from less than 10% to about 33%.
4.) Intact earnings, with sugar having high prices this year.  (subsidiary: Pacific Sugar Holdings).

After Another Major Correction

And so FDC disappointed me badly, currently having a 24% loss (!!).  The big price drop was due to the ongoing market correction, and was pushed further by the retraction of FDC in stock offerings due to the low price (which ironically made it lower).  I'm still holding this for the long term, albeit recognizing it as a stuck for now.  I still believe it is a fundamentally good stock, however, with its low float, I'm not sure when will it start going up again.  I am actually tempted to buy more to average down however, I am still studying some other options (stocks), hopefully to regain short term losses.

Some notes:
DMC- Director Sid buys at around 32.6, so it should be safe at those levels.  Probably average down at that price in case it goes lower again.
AMC- Milk prices are projected to go up.
AGI- c/o MEG is currently looking good at this down market.  Seems like property stocks are slowly going back in play.

Watchlist:
PCOR- with oil prices looking to go up, this stock may be cheap at these levels.  Plus good volume on the past 2 days.  Buy at 14.37.