Fund Managers

You really wonder who are those absolute fuckwits who sold off equities recently, causing a major stumble in stock markets around the world.  There was really no good reasons for it, as the 'correction' is too massive and too suddenly.

However, in life, I love these fuckwits as they give me an opportunity to top up good stocks.  In the recent past, I have topped up CBA, SYD, ASX, APT, HUB, NWL, NXT, WTC, CT1, ORE...  It is almost irresistible when good reports lead to share price fall.  Of course, not every purchase has been profitable but most have!

Is it great being a contrarian?  I will only know when I retire and can no longer afford to get excited by the ASX...  I am playing opposite professional investors using superfast and superpowerful computers.  Their game is short term, mine is long term.

NWL

I do not have any idea about NWL's modus operandi.  But reading articles in the papers, they imply that it is punching above its weight.

Since I bought into it, it has not been doing much so when it falls, I topped up in small aliquots.  I noticed it has been rising again.

http://www.afr.com/business/banking-and-finance/financial-services/netwealths-matthew-heine-and-kodas-steve-tucker-back-financial-advice-startup-nod-20180223-h0wjyp

Good profit announcements

I have invested in a few technology stocks in the last 4 months.

CT1, WTC, NXT, APT all had great results but strangely 2 plunged and 2 jumped with good profit announcement.

Then SYD, RIO and BHP made good profit announcement but there is no dramatic response.  Same with the big 4 banks.

WES is struggling with its hardware store investment in the UK and its share price went up!

Obviously, it depends on what the fund managers are expecting.  If profit is good but not as good as anticipated, then crash!  However, I am there for the long term.  Usually, bad reports are punished but WES strangely went the other way!

But the star is VLA because of a takeover by MSD so that portfolio has a nice spurt.

WTC and SYD

Experts have their expectations but the figures are only for short term investment.  If the figures are below what they expect, the share price is punished.

I can't find details anywhere regarding those 'expectations' but today, I topped up on WTC (after its plunge) which fell even further.  I took a nap so I didn't manage to get some in SYD.

Both produced decent figures with future prospects looking good.  Yet, both were severely punished.

CBA

It fell yesterday... like all banks but it went further down because it was ex-div.

However today, the other big 3 were up a lot but CBA fell.  All things being equal, I cannot see why only CBA fell.  That signal is irresistible so I topped up with another small parcel.  Not really the best day to buy as the market went up.  However, in relative terms, CBA went down a lot!

AMI

If you read my blog, you would have the impression that I am highly successful with my ASX investments.  Like gamblers, I only highlight the successful ones!

AMI is one of those where I follow my logic and it worked out right.  However, what I didn't expect was how 'too well' it has gone.  With many good announcements, it never caught the attention of the market.  Then it announced a SPP recently.  Because its share price rocketed, there was suddenly a great interest in it.  I bought the maximum permissible and it has nearly doubled in price.

So AMI was 'too' pleasant a surprise.  When a stock does so well, it is often a worry too.  With a logic behind it, it is also nice to know my strategy still works....  ie buy when the market is uninterested with the bountiful good announcements.  Certainly, I won't buy any more for a while unless the good news outstrips the price rise.