Updates on Portfolio Realized and Unrealized Profit

As of 28 September 2018

My portfolio has swung back into the positive region from last month bad result due to the fall of 800 Super. This month, the spotlight is now on M1 as Keppel and SPH bid for majority control over M1. The general offer price of $2.06 is at 26% premium of the closing price before trading was halted at $1.63. The possibility of bidding war with Axiata resulted in the price of M1 to reach a high of $2.13 above the offered price and contributed to the increase in total unrealized gain for my portfolio. Some institutions have bought the shares of M1 above the offered price, perhaps they are confident that there will be a counteroffer. I do not think that Axiata will counter bid for M1, as any bid by Axiata may be seen as a negative news to Axiata's shareholders. More importantly, does Axiata wants to be the one leading the transformation for M1. Of course I do still hope for a counter bid, but if Axiata do not counteroffer, I can still accept the Keppel and SPH offer at $2.06.

The selldown on Thursday caused further decrease in unrealized gain but I have not updated the chart yet as I only do it at the end of each month. Most of the stocks fell around 2-3% while M1 is one of the few which did not fall as the offered price provided a very strong support during the selldown. Although the market has rebounded slightly on Friday with bargain hunters entering, it is still unclear whether the selling will continue next week. If the selling continues next week, I will probably be entering for a nibble. Due to the raising rates environment, my shopping list includes stocks in the Consumer Staple and Financial sectors.

Portfolio value could swing widely in a very short period of time but as a long term investor, this should not affect your investment strategy. The focus for me is still on portfolio construction.