Portfolio Review and my Favorite Stock of the Year
The past two months makes me want to believe that the economic recovery is looking good. Markets have consistently been rising, and so has my portfolio so I am not complaining.
I’ve put a lot of cash to work over the past 2 months. Cash made up about 35% at one point of the year, but that has been drastically reduced down to 8% by the end of October.
My Portfolio YTD and Monthly Performance Stats
The portfolio certainly has come a long way from the bottom of -20% mid way through the year.
I’m aiming to break even. It doesn’t matter whether or not I beat the market every year, as long as I don’t lose money because I know that in the long run, I will beat the market.
Transactions in Sept & Oct
Bought ADBE
Couldn’t resist buying ADBE when it dropped 20% following earnings. ADBE stock valuation and reasoning here.
Bought YNGFF
I first came across this valuable idea from Pakiya Funds. Sat on my bum taking my time while the stock was at $0.37. Now it is over $0.80 already.
I’m not an expert on precious metal producers but after reading as much as I can on the company, YNGFF is clearly cheap on a cash flow basis. Next year should be exceptional with the anticipation of production hitting estimated targets.
To learn about YNGFF begin by reading the following links.
- Drew Clark: Adding Value Through Growth
- Yukon Nevada Gold Byron Capital research report
- Yukon Nevada Gold Hallgarten Research Report
- Yukon Nevada Gold presentation
Above Average Odds has come great material as well.
- Yukon Nevada Gold (YNGFF.PK) – Still Stunningly Cheap
- Investment Analysis: Yukon Nevada Gold (YNGFF.PK)
There is also more learning material in the forum on precious metal miners.
Sold BOLT
Reduced the position slightly to free up some cash. No other reason.
Bought MMPIQ
I thought I was finished with bankrupt stocks but MMPIQ looks to be a very good prospect. A very small portion of the portfolio with a floor around 25c and upside much higher.
A quick read up can be found on the MMPIQ stock analysis by AQ Value. More info on MMPIQ can be found at AQ Value.
Bought SUNH
SUNH will soon be completing its spinoff. Spinoffs are always good opportunities but I am especially eager about the spun off child Sabra. Sabra will become a standalone healthcare REIT.
Read these links (Thanks to Stock Spinoff Blog)
- Sun Healthcare Real Estate Spinoff Nears
- SUNH Spinoff press release
- SUNH Spinoff presentation
- SUNH investment presentation on Valuehuntr
Bought RDI
An investment with a catalyst.
Reading International operates movie theaters as well as own land. The company has a presence in Australia, New Zealand and USA.
Having lived in Australia for most of my life, and having been to many of Reading Cinema’s and knowing the land location of a few of its properties, RDI looks to have a big margin of safety.
Fund manager Andrew Shapiro has been following RDI for years and has plenty to say about the company on his Seeking Alpha page.
This is an opportunity based on discount to assets. People against the idea have been arguing that cinemas will die but that point is completely off track from the investment thesis.
Sold INSM
Simply needed to free up cash. INSM was one of my biggest positions but I cut it down as better ideas came along.
Bought RHDGF
Most definitely my favorite investment of the year.
Cheap on a sum of the parts valuation. Huge margin of safety. Clearly plenty of upside potential with low risk.
Read about it before Wall Street catches on.
Looks like somebody else has written about RHDGF. Good article but very similar to the linked pdf.
Sold APNC
My growth expectations were incorrect. Made a mistake and selling at a loss of about -23%.
What I’m Reading
Made to Stick: Why Some Ideas Survive and Others Die
Fantastic book on how to package your ideas in order to make it stick in the minds of people. Useful in everyday life as well as investing.
Go read it.
The link is an Amazon affiliate link. I’ll receive 50c or so for referring you. If you can’t stand the idea of me receiving 50c, still make sure you purchase it by searching the title yourself.
Disclosure
Long all positions except APNC.
