Market Correction = Shares on Sale?

Sometimes I wonder what to write about. Markets are down, earning season is over, portfolio does not look good. Every so often, I will just mentally block off the stock market (hence this explains why I can’t think of anything to write :p). Actually nowadays I tend to read books and watch Youtube more often. Just waiting for the dust to settle; wondering when the party will be over (the bottom is anyone’s guess). A Peter Lynch book is always a cheery companion.

I was never be in a hurry to sell or buy (big), and never use margins.

“The market can stay irrational longer than you can stay solvent.” John Maynard Keynes

Moreover, there is only so much and so many times you can write / whine about the poor state of your portfolio. Ultimately I think that isn’t what one should be focusing on anyway. Life goes on, and for companies, business as usual.

“If you can’t convince yourself “When I’m down 25 percent, I’m a buyer” and banish forever the fatal thought “When I’m down 25 percent, I’m a seller,” then you’ll never make a decent profit in stocks.” Peter Lynch

“When you are holding stocks, if it goes up, don’t be too happy; when it goes down, don’t be too sad. Otherwise, how? Your life will also be fluctuating and you’ll die of a heart attack. If you really lose sleep over it, maybe the best way is to keep the money in the bank.” Peter Lim

So does a correction means that it is time to go shopping for stocks? Or like the older folks tend to say “the Candy store is open”? Is the price right?

I already know the intrinsic values of most of the stocks in my portfolio, these (and even a number of stocks beyond my portfolio) are at the back of my mind… ok kidding, I need to read back my old posts to refresh my memory.

Of course these are just estimates and could be way outdated. Nevertheless, it works like a shopping list for me (a Sale is not a sale if you don’t know the true bargain price of the stock).

Frankly, despite the correction, some of the fundamentally good stocks are still “up there”.

However, one must bear in mind the fundamentals and business narrative (growth story) of the company so far. Have they deteriorated and changed (for the worse)? Did the stock price dropped just because of a (or a few) weak quarter results? Are the long term and short term outlook positive?

1. Vicom – Intrinsic Value calculated in Jan 2015 is 5.28. Stock price on 21 Aug 2015 is 5.90.
2. Riverstone – Intrinsic Value calculated in Jan 2015 is 0.5. Stock price on 21 Aug 2015 is 1.72.
3. Super Group – Intrinsic Value calculated in Jan 2015 is 0.9. Stock price on 21 Aug 2015 is 0.85.
4. ISOTeam – Intrinsic Value calculated in Jan 2015 is 0.44. Stock price on 21 Aug 2015 is 0.54.
5. Raffles Medical – Intrinsic Value calculated in Jan 2015 is 3.58. Stock price on 21 Aug 2015 is 4.37.
6. Nagacorp – Intrinsic Value calculated in March 2015 is 3.75. Stock price on 21 Aug 2015 is 5.35.
7. Sarine Technologies – Intrinsic Value calculated in April 2015 is 2. Stock price on 21 Aug 2015 is 1.51.
8. Colex – Intrinsic Value calculated in April 2015 is 0.37. Stock price on 21 Aug 2015 is 0.27.
9. Shimano Inc – Intrinsic Value calculated in April 2015 is 31,969. Stock price on 21 Aug 2015 is 14,840.00.
10. Japan Foods Holding Ltd – Intrinsic Value calculated in June 2015 is 0.34. Stock price on 21 Aug 2015 is 0.47.
11. Osim International Ltd – Intrinsic Value calculated in June 2015 is 2.55. Stock price on 21 Aug 2015 is 1.50.
12. NeraTelecommunications Ltd – Intrinsic Value calculated in June 2015 is 0.29. Stock price on 21 Aug 2015 is 0.58.
13. Silverlake Axis Ltd – Intrinsic Value calculated in July 2015 is 1.03. Stock price on 21 Aug 2015 is 0.64.
14. Health Management International Ltd – Intrinsic Value calculated in July 2015 is 0.29. Stock price on 21 Aug 2015 is 0.27.
15. GP Industries Ltd – Intrinsic Value calculated in July 2015 is 0.51. Stock price on 21 Aug 2015 is 0.67.
16. Spindex Industries Ltd – Intrinsic Value calculated in July 2015 is 0.56. Stock price on 21 Aug 2015 is 0.56.
17. Neo Group – Intrinsic Value calculated in July 2015 is 1.29. Stock price on 21 Aug 2015 is 0.78.
18. Breadtalk – Intrinsic Value calculated in Aug 2015 is 0.38. Stock price on 21 Aug 2015 is 1.16.

“Risk is not inherent in an investment; it is always relative to the price paid. Uncertainty is not the same as risk. Indeed, when great uncertainty – such as in the fall of 2008 – drives securities prices to especially low levels, they often become less risky investments.” Seth Klarman

I hope you haven’t been losing sleep over the recent stock market volatility.

Shall leave you with this.