Analysis The Performance Of Individual Funds

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02 Nov 2017

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Stock Investment Analysis

Student Name : Li yucheng

Student ID : 1006006810

Matriculation No. : 20037825

Date : 16/4/2013

Word Count : 1556

Table of Contents

1. Introduction

2. Analysis the performance of group funds

3. Analysis the performance of individual funds

4. Comparison of the group stocks and individual stocks

5. Analysis and discuss the effects of my shares to the group

6. Conclusion

7. Reference

Stock Investment Analysis

1. Introduction

In investment management of the individual report, I will analysis and discuss the stocks what their changes, profit or loss in one month. One month ago, I got one hundred million to invest ten stocks, so I chose ten stocks, they are UOB, GP Industries Ltd., CapitaLand Limited ADR, Capitamall Trust, Baker Technology Ltd., Archipelago Resource PLC, Hour Glass Limited, Ascendas India Trust, WBL Corporation Limited, Armstrong Industrial Corporation Limited, and Guocoland Limited. Every stock I invested ten millions. By the way, my group also used one hundred million to invest ten stocks. So I will also contrast my ten stocks with my group’s ten stocks.

2. Analysis the performance of group funds

Following the monitoring of our groups funds in last four weeks, we recorded the data, analyzed data and calculated every week. Throughout our investment statistics report during these four weeks, we made profits in the first two week, but had a great loss of nearly $1,000,000 in the third week. In the last week, we also lost. By the final statistics, the investment of our group only had a bit of benefit from these stocks. The market value of our all holdings was $100,375,729.3 in the last day. So the profit of our investment over 4 weeks was $375,729.3. After calculating we can easy to get the one month return rate is 0.3757%, and Annualized Fund Return is 4.996%.

3. Analysis the performance of individual funds

Stocks

Bid Price/$

Entry Date

Cost/$

Present Date

Stock Price/$

Market Value/$

Profit/Loss

UOB

19.79

12/03/2013

10,000,000

12/04/2013

20.4

10,308,236.48

308,236.48

GP Industries Ltd.

0.49

12/03/2013

10,000,000

12/04/2013

0.47

9,591,836.74

-408,163.26

CapitaLand Limited ADR

5.68

12/03/2013

10,000,000

12/04/2013

5.74

10,105,633.8

105,633.8

Capitamall Trust

2.07

12/03/2013

10,000,000

12/04/2013

2.26

10,917,874.4

917,874.4

Baker Technology Ltd.

0.42

12/03/2013

10,000,000

12/04/2013

0.45

10,714,285.71

714,285.71

Archipelago Resource PLC

0.87

12/03/2013

10,000,000

12/04/2013

0.84

9,655,172.41

-344,827.59

Hour Glass Limited

1.90

12/03/2013

10,000,000

12/04/2013

1.83

9,631,578.95

-368,421.05

Ascendas India Trust

0.83

12/03/2013

10,000,000

12/04/2013

0.82

9,879,518.07

-120,481.93

Armstrong Industrial Corporation Limited

0.29

12/03/2013

10,000,000

12/04/2013

0.30

10,344,827.59

344,827.59

Guocoland Limited

2.18

12/03/2013

10,000,000

12/04/2013

2.32

10,642,201.83

642,201.83

In total

100,000,000

101,148,964.15

1,148,964.15

Throughout the whole month statistic of my ten stocks, at last, I have a loss in four stocks, they are: GP Industries Ltd., Archipelago Resource PLC, Hour Glass Limited and Ascendas India Trust. But there are six stocks letting me get profit, they are UOB, CapitaLand Limited ADR, Capitamall Trust, Baker Technology Ltd., Armstrong Industrial Corporation Limited and Guocoland Limited. At first, I got one hundred million dollars to invested ten stocks, each stocks can be invested ten million dollars. So I chose ten stocks that all of them have a high forward P/E and low P/B, P/S and P/CF. After in the whole month, that four stocks’ market value has decreased $1,241,893.49 from $40,000,000 to $38,758,106.51. With the loss of the market value, the expected value of the four stocks also decreases, from 13.2 to 12.9, 10.5 to 10.1, 7.6 to 7.4 and 22.2 to 22.1. The other six stocks’ market value has increased $2,390,857.64 from $60,000,000 to $62,390,857.64. With the profit of the market value, the expected value of the six stocks also increases, from 11.2 to 11.4, 29.9 to 30.2, 13.9 to 14.0, 13.7 to 13.9, 23.7 to 24.0 and 19.5 to 20.8. And the total market value was $101,148,964.15, and I got the profit of $1,148,964.15. From the all above data, I calculated my one month rate is 1.15%, then I calculated my Annualized Fund Return is 14.71%. If I invest these ten stocks one year, I will predict to get profit of $14,710,000.

4. Comparison of the group stocks and individual stocks

Compared with group and individual stock investment, I found that my personal equity investment is more superior to group’s stock investment. In whole month, the group's share of profits is $375,729.3, and my personal investment share of profit is $1,148,964.15. By observing the data I found that group's shares compared to individual stock there is defect in some aspects. Group bought 800 Super Hldgs and TianjinZU these two stocks in the first week, the price is $0.191 and $1.095, but in the latter two weeks group sold them respectively with $0.171 and $1.045, this act leads to group’s shares suffer losses, and then, the group bought stock of Sheng Siong, but the share price was not change. In the holding stocks, Sim Lian Group and SingTel has suffered losses, respectively, from $0.875 to $0.865, $3.55 to $3.54. In my personal equity investment, I was not buying or selling any stocks, in whole month. I always choose the higher expected value stock as the key to buy stocks. But in the end, there are four stocks suffered losses. In general, a part reason of the group's stock losses due to high price to buy but sell a low price in the short term, then group bought a stock but share price did not increase. In stock investment, the group that is inclined to well-known enterprise to invest. In my individual investment, the reason of losses is too much believe the data of predicted value, P/B, P/S and P/CF.

5. Analysis and discuss the effects of my shares to the group

The basic rule for successful stock investing is to buy low and sell high. Though my stock investment is profitable overall, in the ten stocks, only four stocks were defective, other six stocks were profitable. But the four stocks loss value was $124193.49, while the six profit value of the stock was $2390857.64. My success is mainly based on the analysis of the data. By observing the values of P/B, it can help me seek which listed companies can have higher output with less investment, for large investment institutions, it can help them to identify investment risk. By observing the P/S ratio, I can know that the smaller this ratio (i.e. less than 1.0) is usually thought to be a better investment since the investor is paying less for each unit of sales. And a high P/CF ratio indicated that the specific firm is trading at a high price but is not generating enough cash flows to support the multiple.

But I also found that loss of value accounted for half of the profit value. For those stocks of loss, I also found some mistakes. First reason is that I know too little to the market situation, blindly go into the market. When I chose the stocks, I did not research the market situation of the companies. Resulting in along with the change of market environment, the value of the shares subsequently change, but I was unable to make the right choice. Second reason is that buy the wrong time. There are not any stocks can be bought whenever you want. As a short-term investment, I should be more inclined to choose stocks that rise fast but not stable, rather than the stable stocks. Third reason is that didn't make enough investment analysis when I chose the stocks. Because by market supply and demand, policy bias, interest rates, exchange rate changes, changes to operating conditions and other factors, the stocks’ price will appear volatility and risk. So what time to go into the stock market and buy which stocks that will have a direct impact to me.

6. Conclusion

According the data of our group and individual report, while investing in stocks is risky, loss is necessary, but we can through many ways, as far as possible to avoid losses. Andre Stowe Lanny said, investors must have four elements: money, ideas, patience, and luck. The best method for investing in the stock market is to focus on valuation and sentiment. Over time, stocks sell based on valuation. If prices are low relative to earnings, cash flow, and alternative investments, stocks will move up. If prices are high, they will move down. We need to collect more information and data when we prepare to invest the stocks. And we also need to understand market situation and the development of companies. By the way, think is most important. Warren Buffet says that after you think, then think again. Warren Buffet says that if he cannot fill out on a piece of paper several reasons to buy a stock, then he will not buy it. Maybe through this method, we can become a good investor.



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