With markets heading lower for the week and a margin crunch in the pension portfolio, this was a week for averting the cash crunch for September options expiry, tidying up some small lots and not entering new trades
Portfolio News
In a week where S&P 500 dropped 1.26% and Europe dropped 1.84%, my pension portfolio dropped 2.22%. That was not as bad as I expected with Australian stocks down 4.49% dragged down by 18% drop in Latin Resources (LRS.AX) and 7% drop in De Grey Mining (DEG.AX). Lifting was done again by Japan up 1.1%.
Big movers of the week were Canopy Growth Corporation (WEED.TO) (+71.6%), Delivra Health Brands (DHB.V) (+66.7%), Elmore Limited (ELE.AX) (+66.7%), Panther Metals (PNT.AX) (+39.3%), GTI Energy (GTR.AX) (+28.6%), 88 Energy (88E.AX) (+16.7%), Mitsui Engineering & Shipbuilding (7003.T) (+14.4%), Azincourt Energy (AAZ.V) (+14.3%), Cronos Group (CRON) (+11.7%), Bod Science (BOD.AX) (+13.4%), Aurora Cannabis (ACB.TO) (+10.8%), Boss Energy (BOE.AX) (+10.9%), Northern Dynasty Minerals (NAK) (+10%)
13 stocks in the big movers list with 4 themes standing out - cannabis (4 stocks), base metals (2 stocks), uranium (2 stocks) and Alaska permitting (2 stocks)
US markets are preoccupied with the chance of the Federal Reserve staying on the rate rise path for a while longer. The week saw stocks head lower with a slight respite in Friday trade but not enough to end the week higher than the week before. With earnings season nearly over eyes turn to the next Federal Reserve meeting on Septembr 19/20
The Trouble with Africa Investing
Leo Lithium (LLL.AX) has been in a trading halt and suspended from quotation for some time (months) following correspondence from the Mali Government. Took forever for the company to get meetings with the government. The gist of the intervention is the government has suspended the direct shipmnet of ore (DSO) permits. Effectively they want producers to do some level of beneficiation of ore product in country rather than shippig ore elsewehre. That is a very laudable objective but it does not take into account the way the capital was raised in the first place and of the business plan. Leo's plan was to run DSO to fund the development of the beneficiation plans they had in place. That has been blown apart. Of course, one does need to mention that the government already has a 10% free carry - they do not contribute capital. Infrastructure for road and rail is already in place.
Impact: 49% drop in share price on day one after listing recommenced.
The headline: This is not the first time. All my Tanzania investments got nuked. Rumbles about uranium holdings in Namibia. Terrorist activity affecting ruby and graphite investments in Mozambique. Yikes.
The cannabis moves hinted at last week might look like they have legs. We have seen this before in the run up to US Elections. Maybe this time.
Crypto Drifts
Bitcoin price drifted all week ending 1% lower with a trough to peak range of just 4%
Ethereum chart looks much the same with a bit more down 1.5% but a narrower range of only 3.5%
Stellar (XLMUSD) made a second week of gains with a rise of 10%
This takes price past the last entry point in my portfolios - the blue ray
Thorchain (RUNE) also ahead 10% and going above last entry point.
IoTeX (IOTX) also showing signs of life with a 12% pop - this is about the sum total these day sofr big moves
IoTeX is the Platform for DePIN Builders. It combines fast, secure blockchain tech with the Internet of Things (IoT) and smart devices.
Bought
American Water Works Company (AWK): US Utility. Assigned early on a sold put creating margin havoc in my account - currency sales all over the place to get enough US Dollars. Breakeven after 14 months of sold put income trades is $136.06 which is a 1.2% discount to $137.80 close (Sep 1)
BHP Group Limited (BHP.AX): Mining. Replaced the stock sold in pension portfolio by adding to my personal portfolio. Dividend yield 5.84% Ex date Sep 7
Sarytogan Graphite Limited (SGA.AX): Graphite Mining. Idea from Next Investors as part of the alternate energy domain.
Investment on the back of test results showing very high recovery rates - like very, very high
Sold
SBI Holdings (8473.T): Japan Financial Services. 24.7% blended profit since February 2018/March/November 2019. Original trade idea was to earn dividends off SBI's involvement in cryptocurrency especially Ripple - see TIB195. Total dividends received (after withholding taxes) were 84% of the total capital profit - so it worked out as a solid capital and income investment
Chart shows the averaging down entry points (the point of the arrow is trade week and the level is the price)
BHP Group Limited (BHP.AX): Mining. 26.8% profit since January 2014 - this is the last holding from my previous fund manager in my pension portfolio. Sold to raise capital to cover margin risk.
MegaChips Corporation (6875.T): Japan Semiconductors. 46.9% profit since February 2023. Stock screen idea.
Tied up a few small holdings to release capital - will run credit spreads for a while on these. All three stocks are on AAPlus buy lists (at the right prices)
American Water Works Company (AWK): US Utility. 3% loss since June 2023. The assignement mentioned above gives a round holding for writing covered calls
Axon Enterprise, Inc (AXON): Security Services. 9.2% blended profit since May/July 2023. Averaging down on last two tranches made the profits.
Elevance Health Inc (ELV): US Healthcare. 2.1% blended profit since June/July 2023 - all 3 tranches profitable.
ASX Portfolio
The segment reports trading in ASX fractional share portfolio. Trade entries are made based on stock screens looking for undervalued stocks (price to book, price earnings, price to sales) that are showing technical signs of breaking a downtrend. Exits are made at 30% profit or 20% if 52 week high is lower than 30% advance. New buys are in $200 lots. Scale ins and top ups in $100 lots
New Buys
Myer Holdings (MYR.AX): Retail. Dividend yield 12.40%
Chart shows price breaking the downtrend a few weeks back and trading sideways along the flat moving averages - earnings is coming up.
Scale Ins
Monadelphous Group (MND.AX): Mining Services. Dividend yield 3.63%. Ex date Sep 7
Top Ups
Coronado Global Resources Inc (CRN.AX): Coal Mining. Dividend yield 10.58%
Chart shows price falling back after breaking the downtrend and now having another go after a broker upgrade - headline for that is on the chart.
Collins Foods Ltd (CKF.AX): Restaurants. Dividend yield 2.82%
Trading Fees
Sharesies launched monthly plans with a fixed monthly fee for given trading volumes. Went back over the last 12 months data and note the monthly trading commissions range from $50 to $75 with trading volume around the $2000 level - cut over to the $20 plan for $3000 trading - cuts commissions by more than 50%. From this report will change the lot sizes to $300 for new buys and $150 for scale ins and top ups.
Income Trades
Quiet week for covered calls with only two written across 3 portfolios (Europe 1 US 1)
Naked Puts
Rolled out a series of sold puts to reduce the risk of exercise - all trades were cash positive - some of the buy back losses were not pretty.
Elevance Health (ELV): US Healthcare. With price opening at $444.52 (Sep5) rolled out 450 strike sold put locking in 3.8% profit on the buy back
Fiverr International (FVRR): Internet Services. With price opening at $27.99 (Sep5) rolled out 30 strike sold put locking in 39.9% profit on the buy back
Norwegian Cruise Line Holdings (NCLH): Cruise Lines. With price opening at $16.32 (Sep5) rolled out 18 strike sold put incurring 32.1% loss on the buy back
Sunrun Inc (RUN): Solar Power. With price opening at $15.51 (Sep5) rolled out 19 strike sold put incurring 39.4% loss on the buy back
Marriott Vacations Worldwide (VAC): Resorts & Casinos. With price opening at $106.26 (Sep 6) rolled out 125 strike sold put incurring 329% loss on the buy back. Ouch - this is a long term view on the rebound in travel spending
Invesco Solar ETF (TAN): Solar Power. With price opening at $57.68 (Sep 6) rolled out 65 strike sold put incurring 548% loss on the buy back. Ouch - this is a long term view on the role of solar power in the climate change future. This trade was part of a call spread risk reversal with the 70/80 call spread expiring in January 2024. Max profit potential for that trade increases to 587% but the sold put is under water.
Resources
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers. Crypto tickers come from TradingView
Charts: http://mymark.mx/TradingView - this is a free charting package. I have a Pro subscription to get access to real time forex prices
Investing: Interactive Brokers provides comprehensive global markets coverage with very competitive commissions. Open an account to earn up to USD 1,000 in IBKR stock. https://mclnks.com/ibkr
Crypto Trading: Binance offers a wide range of coins to trade, tight spreads and low fees if you use BNB to pay https://mymark.mx/Binance
Kucoin offers a wider range of altcoins than many of the other exchanges. I do like to diversify my holdings in case an exchange gets knocked over. Grab 15% discount on your trades when you open an account on this link https://mclnks.com/kucoin15
Tracking: Keeping track of your crypto trades is a whole lot easier with CoinTracking.info. Get 10% off all your account upgrades https://mymark.mx/CoinTracking
Aus/NZ Investing Sharesies provides low cost, fractional share investing for Australian and New Zealand residents covering stocks in those countries and US. Start investing with as little as $20 https://mclnks.com/shares
September 4-8, 2023