Performance of Virtual Fund

Sum invested = $647,900
Cash holding = $850
Realised profit = $148,750 = 29.7%
Unrealised Loss = -$19,800 = -3.96%

It has been a disappointing week in general. Some companies have reported excellent Q3 results but the weaker market sentiments sent the share prices lower and lower. I would advise investors to stay away from the current market. Have a systematic plan to average down if your invested companies have performed well fundamentally. Keep yourself busy and avoid looking at the hourly price fluctuations. Come back in few months time and things may be better by then. For those who favour S-shares like me, stay positive. I still believe the foreign funds will come here to buy up sooner or later. Many counters have lost the support they used to enjoy because the foreign fund managers have enough problems themselves. Many are forced to realise their gains to cover their sub-prime losses. Sounds familiar right?

Some investors have not been paying attention to the latest set of numbers and continue to average down prices blindly. I would advise them to average down wisely. Take for example Pine Agritech. The fundamental of the Company has somewhat changed with weaker sales and lower profit margin. Pine appeared to be so solid just few months back with the aggresive expansion plan but also had to succumb to slower growth in its biz, at least in the short run. The rising costs have been a major concern for many companies and this is becoming even more obvious in the latest financial reports.

As for ChinaHongxing, it would appear very crazy to have placed out 400 million shares! This can be a significant IPO on its own. Investors maybe in for disappointment in the short run due to the share dilution. The 2 days trading halt also did not reflect well on the company's dealing practices and transparency. Many punters were caught off-guarded. On the brighter side, this share placement exercise would mean the Company now has the war chest to move up one level and may even be capable of acquiring the smaller players. In the retail sector, the ability to expand with bigger retail areas at quicker pace can really win the race to be the key player in the market.

STX Pan Ocean. I bought some to test the water. The Company has mentioned officially that it is working with the respective exchanges to allow migration of shares between SGX and Korean Stock Exchange. If the plan materialises in Q1 2008, there will be price arbitrage opportunity if the price gap between the two exchanges continue to persist. Currently it is trading at above S$6 in Korea! On the merit of its Q3 results, the valuation appear undemanding and the future prospects look promising with BDI staying firm.