As the new year begins I am setting up a strategy for my portfolio which has gone off during the past 2 years. I have decided that I will only invest in 3 counters therefore I need to drop off one of the 4 or drop 2 and pick up a different one.



http://i1299.photobucket.com/al...iocharts_zps93fd6f07.png

Looking at my portfolio I feel it is time to divest from Eveready even though I still have confidence that it will be recovering soon, KQ and MSC are definitely good counters into the foreseeable future especially with their good dividend payouts.

I wish I had the emotional strength to sell Access at the current loss position but I do not so my only choice will be to do the thing I did with Eveready, average down.

http://i1299.photobucket.com/al...mentERDY_zps07566b0e.png


What is more critical now that I have decided to sell off EVRD is where to put the proceeds;

1. Do I start averaging down ACCS?
2. Do I increase my position in MSC?
3. Do I increase my position in KQ?
4. Do I start diversification and add bonds to my portfolio?

I will deal with access in the second quarter of the year after the elections as well as the investment in bonds, so the only decision now is between 2 & 3.

In the current year I would like to add some fixed income instruments onto my portfolio so as to create a dependable income especially since I am getting closer to retirement.

Therefore it might make more sense to average down ACCS then sell off once it goes positive and use the funds to go into bonds instead of reinvesting in the equities market.

http://i1299.photobucket.com/al...siskqmsc_zpsb8de6bf9.png

The graph above has sorted out the issue of which counter to grow as you can see MSC is actually a better buy than KQ. With the planned increase in power production expected and the recently approved increased rate for sell of power to KPLC this situation is likely to persist for a while longer.

MSC has also consistently paid out a dividend over the past number of years a policy I believe the board intends to continue pursuing into the future. The new devolved government is the icing on this cake.

With KRA on the neck of property owners, it seems time for me to sell off those rental units, but with elections round the corner, there is a stronger temptation to pick up more as the prices are very appealing with many looking for elective positions.

In addition, the confusing and alarming KRA messages concerning taxes on rent with the threat of a retrospective application has also increased the supply of rental units up for sale especially in the 3,000/- to 15,000/- per unit rental range of multi-dwelling properties.

As I start the new year all seems rosy and unless we do something stupid on 4th of March the rest should be academic.

Have a prosperous and sensible new year.

Selling rental units is a dumb move too. Yani you are selling real estate when some of us are investing in stocks to get cash for real estate...remember that any tax by KRA will be passed on to the tenant...so it makes no difference.

Whether monkey or what i believe every stock will have its day.

This should not be used to justify buying into a bad investment....dont be ignorant.If a company has issued five consecutive profit warnings and has no future prospects,will you buy more or abandon ship?...the choice is yours

The only valid reason for buying into your proposed counters is that you are buying into a very long term investment.Long term investments are for young people.

How long is very long and how young is young?

I have clearly indicated that I am reducing my holdings in stocks that will not be recovering soon and which means that I agree with your analysis.

What I am doing is moving forward from why I am standing, your statements makes it seem that I have just taken a position which is a wrong assumption, maybe you could share your portfolio so that we can see how you have applied your knowledge of the market and the companies.

Please appreciate the fact that I can only move from my current position, starting from an imaginary position would be fool hardy and deceitful both to you and to myself.

You cannot budget based on an expected salary you budget based on your current salary and situation one cannot wish away their age, marital status, number of children or current employment.

What I have posted is my portfolio as it stands this morning a situation that qualifies as water under the bridge what is important is what I do from here going forward.

I promise to post my portfolio at the end of the 1st quarter at which point you will be justified in judging my decisions.

@stocksguru - Nice graphs/tables... I need to use them more often. How about something more interesting... Comparing the laggards to others that have potential [Not KQ, Mumias, Eveready!]

@VVS This is the most patient I've seen you...new year resolution?

From your current position I would:
1 ) Liquidate all my nse holdings.
2 ) With the proceeds, I would buy into three income stocks.
Rea Vipingo:- Payday is nearing.With a projected dividend of 1.5 per share, you can get a return of about 6% of your investment in two months.After books closure,the price will tank a little presenting you with an opportunity to increase your holding.
Housing Finance:- Payday is coming soon and you will start reaping the benefits of your investment. It is trading at a dividend yield of >9%.
Mumias Sugar:- At a dividend yield approaching 10% and with diversification,buy it even though it is trading ex dividend. Dont stick around if there is a rihts issue.
Disclaimer:- Dont take positions in a counter all at once. Buy a chunk and then seek to average down as you get the cash.This will reduce the chances of error and also reduce your buying price.
#Goodluck#

Thanks for the advice but unfortunately you are giving me trading/speculative strategies yet am an investor.

If you look at my initial post I have an appreciation of averaging down.

Your proposed churning will only give a return to my broker which is money down the drain.

Finally, you still have not shared your portfolio so that I am sure you are an active trader/investor and not a backseat driver.