Really Scared Of The Market Now

It's been awhile since I started having the 'something is wrong' feeling.

Today I took things one step further by selling off 1/2 of every US holding that I had. Thankfully every one of these counters are green, so you could say I'm taking abit of profit off the table.

I really have no idea when the crash will come but I have a strong feeling that it will come sooner rather than later.

The S&P hit an all time high today and still keeps chugging upwards, and yet everyone seems to be fearful of the market! Buying when the market is fearful? Perhaps.

I guess I feel better sitting on the sidelines.

Giken Sakata

Initiating converage on this stock. Something appears to be brewing from the movement of the stock price so I am slowly dipping my hands in and hoping to be in the thick of any positive action that comes.

A quick background on this company. Giken Sakata was established in 1979 and subsequently listed on the Singapore Stock Exchange in February 1993. They have manufacturing plants spanning Singapore, Indonesia and China. Since the 1980's, Giken has built a name for itself around the world as an integrated contract manufacturer. Can read more from it's official website here.

The first big piece of news came on March 11, 2014, when Miyoshi Precision sold it's entire stake at a hefty discount to the current share price. This obviously would have led many to think that the share price of Giken Sakata would plunge. However, the reverse happened. After a slight dip, its share price started a very, very steady climb.

Here was a stock that began it's placement at 3.25c, with NTA of not more than 5c, and it is currently trading at 32.5c at the time of this writing. So what gives?

Well one of the clues could come from the key news that on April 11, 2014, it announced an MOU in relation to the proposed acquisition of 51% of Cepu Sakti Energy Pte Ltd. PT Cepu is an Indonesian company which holds the rights to operate and produce oil from two oilfields in the Central Java region of Indonesia, with a total of 148 oil wells. As at the date of the MOU, the Oil Fields are producing a minimum of 300 barrels of crude oil per day. The company's website can be found here.

Since this announcement, there has been hardly any other announcements, but the share price has only been heading in one direction.

I do believe that PT Cepu is yielding something big, and the first signs of this success has not been reported, hence people in the know might be already accumulating the stock. I may wait for a pullback (hopefully), to accumulate more of this counter.

Hopefully this works out.

Huat ah!

2014 Dividend Accumulator XII

Another one of those little itsy bitsy spiders!

01 Jan $197.14
10 Jan $1.55
05 Feb $7.47
01 Mar $75.00
04 Mar $7.11
01 Apr $23.01
02 Apr $34.97
21 Apr $182.00
30 Apr $105.84
02 May $65.31
18 May $150.00
21 May $500.00
26 May $13.62

Total Dividends for 2014: $1,349.40
Average per Month: $113.59

FX Trading - Itchy Finger Syndrome

One of the most common pitfalls of FX trading is the itchy finger syndrome.

What it means is basically that the trader thinks there is an opportunity in the market all the time. This prompts him to become overly eager to get into a bad trade, without much hesitation.

Normally characterized by:

- Placing a trading very soon after getting out of one

- 'Gut' feeling that there is always opportunity in the market

- Maxing out available margin for the largest trade size possible

- Feeling of regret once the trade goes wrong

- Taking very little profit but letting losses run too far

- Perpetually getting stopped out

I can say this is surely one of the most costly trading pitfall. If you can't recognize it and control it, you will lose a lot of money.

Trade safe.

2014 Dividend Accumulator XI

Finally broken the $100 mark! Hope to see more $$ coming in soon!

01 Jan $197.14
10 Jan $1.55
05 Feb $7.47
01 Mar $75.00
04 Mar $7.11
01 Apr $23.01
02 Apr $34.97
21 Apr $182.00
30 Apr $105.84
02 May $65.31
18 May $150.00
21 May $500.00

Total Dividends for 2014: $1,349.40
Average per Month: $112.45

Long/Short Weekly EURUSD Call Binary Option

I realize that playing with binary options can blow a hole in your pocket, yet also help you save money. How? Well if properly managed, binaries allow you to place a trade when you have itchy fingers (that's when you're most likely to end in losses), at a fraction of the cost. In fact your losses are limited to the binary option premium that you will pay upfront.

Today, I decided to take the chance on some potential EURUSD volatility. The market hasn't been moving much, but I figure it didn't hurt to buy/sell both OTM (Out of The Money) weekly EURUSD binaries.

Current EURUSD: 1.3715

Long Weekly EURUSD Binary Call @ 1.3875
Long Weekly EURUSD Binary Put @ 1.3575

So I'm hoping for a sharp spike in the coming days!

Huat ah!

2014 Dividend Accumulator X

I have a general view that the markets will weaken in the coming months, hence I will divest some of my dividend-generating stocks.

01 Jan $197.14
10 Jan $1.55
05 Feb $7.47
01 Mar $75.00
04 Mar $7.11
01 Apr $23.01
02 Apr $34.97
21 Apr $182.00
30 Apr $105.84
02 May $65.31
18 May $150.00

Total Dividends for 2014: $849.40
Average per Month: $70.78

Warning: Stocks Will Collapse By 50% In 2014

Naturally, this kind of title will only appear in a financial newsletter that's aimed to shock and awe.

Yet there is a general feeling that this might come true.

Here's a snippet, without going to the sales bit:

It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts.

“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."

Unfortunately Spitznagel isn’t alone.

“We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”

Faber doesn’t hesitate to put the blame squarely on President Obama’s big government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything under the sun?”

Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also known as the “Total-Market-Cap to GDP Ratio,” is breaching sell-alert status and a collapse may happen at any moment.

So with an inevitable crash looming, what are Main Street investors to do?

One option is to sell all your stocks and stuff your money under the mattress, and another option is to risk everything and ride out the storm.

You can read more of that stuff here.

Lion Teck Chiang Declares Interim Dividend

Wow what a surprise!

Lion Teck Chiang has never been known to distribute much of a dividend.

Although $0.01 isn't alot, its still a nice surprise.

This will add to my passive income :)

Find the announcement here.

Is Prospect Capital (PSEC) In Trouble?

Just as I added to my position in PSEC, this crap had to happen.

So basically PSEC has been asked by the SEC to restate its financials.

It definitely hasn't gone down well with the market, with PSEC share price falling by more than 8% since the news broke last Wednesday.

I'm not very sure what to do with my current holdings, but it is likely I will sit around and watch things unfold abit first before taking action.

Already Seeking Alpha and The Motley Fool have covered the potential impact, but it sure looks like no one really knows the full implications.

Hopefully this isn't anything more than a small matter, and the share price will slowly go back up soon.

Huat ah!!!

April 2014 Stock Portfolio Breakdown

Realized that if I don't do this today, I'll have no time to cover it.

April has been quite fruitful on the dividend front, although when the dust settled, I realized that I was still way, way behind my target for 2014. Hopefully for the rest of this year I can make wiser investments.

Once again, here's my current portfolio breakdown, adjusted to reflect the segmentation more accurately, in the most approximate sense:

54% Growth Stocks
25% Passive Income Stocks
19% Value Investing Stocks
2% Net Cash

I am guilty of being aggressively overweight on a certain stock and that is NOT a good sign. As such I told myself I wouldn't add any more positions to this stock until I regain some balance in my portfolio. Ideally, I would like the ratio above to be 33:33:33:1

For country breakdown:

28% US Stocks
72% Singapore Stocks

See last month's stats.

Prospect Capital (PSEC)

With a market capitalization of 3.4B and a dividend yield of 12.3%, this stock has been my latest addition towards my dividend portfolio.

PSEC is essentially a BDC (Business Development Company) which basically invests in all layers of capital structure, similar to private equity or venture capital investment vehicles.

A quick check shows that the advantages of investing in BDCs include access to potentially lucrative investments in private companies, high current cash flow in the form of monthly cash distributions, and a high degree of liquidity compared to private equity funds.

Hopefully this pays off.

Huat ah!!!

2014 Dividend Accumulator IX

A lot of bits and pieces pouring in today...

01 Jan $197.14
10 Jan $1.55
05 Feb $7.47
01 Mar $75.00
04 Mar $7.11
01 Apr $23.01
02 Apr $34.97
21 Apr $182.00
30 Apr $105.84
02 May $65.31

Total Dividends for 2014: $699.40
Average per Month: $58.28