Updates on Zengame after a 40% gain
Hi Guys, just to share that I’ve sold Zengame as of 18th June 2020. Reason being that I felt it was rather overbought in such a short time even after its ex-dividend date. While I was selling, I wasn’t sure if the share price will continue to “chiong” further but will probably consider buying back in future if cheap. Otherwise, there are still many other companies that can be considered and invested into. Still, it is a decent 40% profit (inclusive of dividend) in just around one month of purchasing or since I shared about Zengame in my blog. I honestly didn’t expect Zengame to “chiong” so fast.
Do check out my previous article (published on May 2020) on Zengame titled “10% Dividend Small Cap Stock & a Potential Multibagger” where I did some fundamental analysis on it. I also shared my buy receipts as proof of purchase. We are thankful that this article was ranked top in the most read list on NextInsight.
A few days after selling, Zengame managed to hit a high of HKD$1.27 on the 23rd Jun 2020 during the day trading hours. Was glad to receive emails from readers who have bought cheaper than me and sold higher than me. Nicely done!
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Recent Purchase on 15th Jun 2020
I went stock market shopping again in this volatile period. Just an update of one of my June purchase. Not encouraging any trades & my positions might change. Please do check out our full disclaimer (links below). Added a small position as I already bought some previously and there is risks of downside. 🤓
Thought that both fundamentals & technicals seems good for INMODE (another small cap in my list). Hence the purchase on Monday, 15th Jun 2020. Kind of late to share it over here but I actually shared it on my Telegram and Facebook page the next day after I bought INMODE. Similarly, I shared my Zengame sell on the night itself in those channels.
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All my articles are time stamped. I’ve also put my own money into the stock market, having skin in the game. Although I may be wrong at times, I chose to share my opinions prior to the outcome being determined and not to just share on the profitable trades. For example, INMODE dropped below my buy price on 25 June 2020. I’ve put my credibility on the line so as to be transparent to all readers. Hopefully, it helps speed up your learning curve especially during this volatile period. Again, not encouraging any trades here but just to share my thoughts and purchases after being in the market for 17 years and personally buying stocks at March 2009 Global Financial Crisis low as shown in my portfolio timeline.
While balancing family time, I will try my best to update my blog as frequently as possible. The frequency of my articles will usually be once every 2 weeks but hopefully, weekly occasionally.
I do share more regular updates in my Telegram and Facebook page such as my opinion of the market outlook and my trades. Do join us there for first-hand information.
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A Quick US COVID-19 Update And Recent Disposal made on 24th June 2020
I shared my view that the stock market was having a “Fear of Missing Out” (FOMO) in my previous article “New Market Outlook After Dow Plunged 1800 Points & Portfolio Reveal”. On 24th June 20, I cautioned in my Telegram group that the US Purchasing Managers Index (PMI) is improving and better than expected but US COVID-19 cases are on an uptrend. This could undo some progress achieved so far. On the 26th June 2020, it was reported that the number of daily new COVID-19 cases in US broke record high, surpassing the peak seen on April [3].
The uptrend in COVID-19 cases in US could be attributed to increased testing [5] but there may be more to the equation. The percentage of positive tests has increased from 4.4% (13th June) to 6% (25th June). Several graphs in this article are obtained from Twitter. Though not able to verify its accuracy, it serves as a 2nd opinion.
On my side, I’ve sold China International Capital Corporation (CICC, 3908.HK) with a decent 30% profit. Just felt that it is rather overbought and decided to cash out a total of around HKD$104k. This frees up some cash for me on hand to invest when the opportunity arises. Just to avoid any misunderstanding, I’m holding on to a large majority of my stocks.
A quick intro to China International Capital Corporation (CICC):
CICC is dubbed as “China’s Goldman Sachs” [9]. It is China’s first joint venture investment bank [10] and also one of the leading investment banks [11] in China with both Alibaba and Tencent as one of their substantial shareholders [12]. Singapore’s GIC is a shareholder of CICC too [13]. If you recall Global Logistic Properties (GLP), CICC took part in its initial public offering in SGX [14].
A reason for the recent surge in share price could be due to CICC being involved in many notable companies’ second listing in Hong Kong such as the recent NetEase IPO [15]. It is reported that there are 251 Chinese companies with a primary listing in US stock markets [16]. Hence, there could be more IPOs to come and fees are in the millions of dollars. CICC is also rumoured to be involved in Yum China’s secondary listing [17].
As much as I like CICC, I felt that it was rather overbought due to the second listing hype. I might be wrong though but will consider buying back in the future. Hope that next week I will not have to bang my head against the wall if CICC share price continues to “chiong” .😅
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More from EngineerInvest.com:
“Stock Market & COVID-19” where I cautioned (a month prior to the crash) of the possible market tumble & how to protect your portfolio published Jan 2020
“Oil at 21 Yrs Low || SARS vs COVID-19” published on 19th April 2020, 1 day prior to the bottoming of the oil price where we mentioned the bottom is close
“EngineerInvest.com’s go-to Charts to Determine Market Bottom” The all-time favourite article where I shared how I determined it was time to buy stocks published early April 2020
“After Jack Ma, is Alibaba an enduring 100-year growth machine?” published 6th June 2020 where I shared on how we can identify a visionary company and why Alibaba is one of my largest holdings
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Kopi C Poll: Which country do you think will develop the first vaccine for COVID-19?
On 25th Jun 2020, SCMP reported that many vaccine candidates have gotten to the final phase of human trials [18]. The vaccine developed by the University of Oxford is one of those currently leading.
The results of our opinion poll 👇🏻 Nice to see that quite a decent number felt Singapore will be the first to develop the vaccine!
The large majority thinks China will be the first country to develop the COVID-19 vaccine. My guess was China too. Regardless of which country succeeds, lets pray that one comes out soon.
Read our past article “China: Long Term BULL?” (published 2 years ago) where I highlighted some of China’s achievements and potential areas of growth. To name one, China is forecasted to produce new millionaires three times as fast as the US [19]. Many other reasons why I’m highly vested into China is shared in the article. Hopefully, this gives confidence to invest in the market. With this I end off this week’s article.
Cheers & Great Weekend!!
Disclaimer: Just sharing from experience as I have put my own money into the stock market over the period of 17 years. I am not a Chartered Financial Analyst (CFA) Charterholder and do not have any finance-related qualifications. Please also check out our full disclaimer.
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Reference Links:
1. https://www.nextinsight.net/
2. https://i.kym-cdn.com/photos/images/original/001/687/107/943.jpg
3. https://www.bloomberg.com/news/articles/2020-06-26/u-s-breaks-two-month-old-record-for-new-coronavirus-cases
4. https://www.worldometers.info/coronavirus/country/us/
5. https://www.cnbc.com/2020/06/23/trump-blames-rise-in-coronavirus-cases-on-testing-despite-signs-of-spread.html
6. https://twitter.com/charliebilello/status/1275991987112550402/photo/1
7. https://compoundadvisors.com/2020/covid-19-breaking-down-the-second-wave
8. http://www.aastocks.com/en/stocks/quote/detailchart.aspx?symbol=03908
9. https://www.scmp.com/business/banking-finance/article/3077783/cicc-dubbed-chinas-goldman-sachs-aims-cash-slumping-global
10. https://en.cicc.com/cmscontent/2.html
11. https://en.wikipedia.org/wiki/China_International_Capital_Corporation
12. https://www.globalbusinessoutlook.com/alibaba-acquires-stake-in-tencent-backed-cicc-bank/
13. https://www.straitstimes.com/business/chinas-oldest-investment-bank-cicc-fails-to-pay-off-for-investors
14. https://en.cicc.com/cmscontent/317.html
15. https://www.bloomberg.com/news/articles/2020-05-05/netease-is-said-to-have-filed-for-hong-kong-second-listing
16. https://www.euromoney.com/article/b1m3gvzd04ppyg/yum-ipo-hits-the-spot-as-chinese-firms-target-hong-kong-listings
17. https://www.euromoney.com/article/b1m3gvzd04ppyg/yum-ipo-hits-the-spot-as-chinese-firms-target-hong-kong-listings
18. https://www.scmp.com/news/china/society/article/3090460/coronavirus-will-vaccine-deals-lead-poorer-countries-missing-out
19. https://www.bloomberg.com/news/articles/2018-10-18/u-s-to-remain-hub-of-world-s-richest-even-as-china-closes-gap
20. https://finviz.com/quote.ashx?t=INMD