Portfolio Update – 9th September, 2015
Hey guys, I know its been…well a friggen long time since I’ve written a portfolio update (over a month). My apologies – I have been gallivanting around the world having too much fun. Over the past couple of months I’ve spent various lengths of time:
Learning how to cook traditional Chilean cuisine in Chile:
Exploring the northern Patagonian Lakes District:
And getting some serious time on the snowboard in both Chile and Argentina:
So I’ll stop showing off, but it’s safe to say I’ve had a pretty spectacular month.
Back to my portfolio and the markets…What a crazy month we have had. The past month has seen some of the most significant changes to my portfolio since I’ve been writing The Nude Investor.
At the time of writing my last portfolio update, I held stocks in over 10 companies. Since that post, I have sold off half my holdings. The reason you may ask- there are a couple.
Firstly, travelling doesn’t come cheap, so I had to liquidate a number of my holdings to pay off the travel expenses.
The market also was starting to undergo the highest degree of volatility we’ve seen in over 6 years, so I took the opportunity to re-evaluate my stratergy and purge my portfolio of some of my under performing stocks that I didn’t see making a turn around any time soon.
Most of the stocks I sold were my junior exploration companies who hadn’t quite come up with what I was hoping for. Those include CZN, RNU and to some degree RVR.
I purchased both CZN and RNU based on a promising technical setup. Both had me in the green by about 25%, before falling away – RNU announced dud drill results whilst CZN has been stuck range trading on no news. Hindsight shows I should have sold, but there’s a reason it’s called hindsight. I ended up selling for a small to moderate loss in both.
I sold RVR due to the general market panic and poor economic data I see coming out of China. China typically drives commodity prices, so any slow down there will continue to weigh on commodity prices which are already at decade lows. I like RVR long term, but decided the risk in holding wasn’t worth the potential reward, for the time being at least. I will look to get back in at some stage however, as I think the companies long term prospects are sound.
During the month DUO went into a trading halt and and announced it had acquired Zyber – a DropBox like secure file transfer software solution. The market initially liked the acquisition, however I wasn’t totally convinced and with the market going through extreme levels of volatility, I decided it was wise to use it’s post acquisition run to sell and cut my now greatly diminished losses. The decision has been a good one as the stock is now trading significantly lower than it’s post acquisition peak.
The last stock I sold was CL8. I’ve held and traded CL8 for a long time, however I’ve never really been totally convinced with it’s business model. It’s had very nice technical setups and has made me some decent short term gains, but I decided it was time to sell out of my remaining long term parcel for a small gain. I’m still keeping an eye on it though, as the company has indicated diversifying to other P2P sectors. Anything in the finance and/or property space (which has been hinted at) would have me very interested.
Of the stocks I have remaining, AJX has had a stellar month or so. It finally broke out above long term resistance at $0.80 to reach an all time high of $1.11. It has since consolidated above the breakout, and in my opinion is setting up for the next move forward, likely following the NYSE listing in a month or so.
Fundamentally, AJX has quietly gone about its business, acquiring additional customers and growing its revenue base. It’s also been dealing with a number customer contracted by the US military – adding serious smoke to an already simmering rumor that a major contract with the US military is just around the corner.
I continue to hold and have been looking to buy on any dips (when I have funds available). I think AJX has a very bright future.
CYY has drifted downwards since it’s initial run and has suffered from “selling the news” syndrome. Meanwhile they continue to announce killer copper grades, the most recent of which is a stunning 14.1m @ 9.9% Cu from a totally new site within their Carribou Dome prospect.
The metallurgy has always been the issue with this deposit, but if they can figure out a way to process the ore economically, then I think CYY could be the next Sandfire.
There has been very little in the way of volume since the big high volume sell off on the 6th of August – looks like someone decided to dump their remaining holding. Looks primed for the next more upward in my humble opinion, although overall market sentiment (both resources and in general) remains poor.
There hasn’t been a lot of action in either LWP or AQD. LWP has suffered from a ton of supply following the announcement of it’s Indian venture and subsequent capital raising (and significant dilution). AQD has suffered from a lack of news flow, but remains a solid longer term play, resource market recovery pending.
BRN (formerly AZK) is still suspended, awaiting re-listing under the BrainChip ticker (BRN). Hasn’t traded at all during the last month.
Apart from that, it’s caution and low risk plays for me at the moment. This is the first time I’ve really experienced hightened market volatility, so I’ve been looking at the past and trying to learn how things play out from here.
Hope you’ve all had a prosperous last month or so. Comment below and let me know what you think about the changes to my portfolio – I always love to hear what you guys think.
The Nude Investor
End of Week Portfolio Summary for 9th September, 2015
|Stock||Average Buy In ($)||Last Close ($)||Last Reports Close ($)||Change Since Last Report||Overall Change (%)|
*BRN was formerly AZK. Ticker has changed due to officially renaming as BrainChip Inc.