Fund Performance Update November 2018 – A Rocket from The Reject Shop

It’s only taken three weeks, but the Fund has a new hero – Reject Shop has come to the Rescue!

A $2,000 profit and a 38.1% return is a very nice way to start indeed – thanks Raphael for giving us this boost with your (opportunistic) takeover offer.

Just imagine if we extrapolated this out for a full year – we’re looking at a 21,000% return! That’s turning the initial $5,200 Reject Shop investment to just over a million dollars!  Ah the fun of extrapolation!  I can’t quite see these shares being worth $439 each this time next year, but we can dream right?

OK back to reality – which is not all sunshine and roses.  And speaking of roses, as our old friends Guns N’ Roses foresaw, there has been some ‘Cold November Rain’* falling on stocks this month.  Who managed to take shelter, and who copped a soaking?

First, let’s look at the big picture – the overall November 2018 Fully Franked Fund performance.

Current Portfolio

Looks good on paper, but if you do the math – a $2,947 overall increase, despite adding $2,000 of cash, and $2,000 profit from the Reject Shop – someone’s been letting the team down……

Fund Investment #10: The Reject Shop – Rejected Big Time By the Market

One of the things that never fails to surprise me with investing is how a cheap stock can always get cheaper.  Even if you think it makes no sense how low the current stock price is, and that it has to go back up – it can still keep going down.

And there aren’t many better examples of this than the Market’s recent treatment of The Reject Shop.

For our regular readers, you might recall we previously looked at The Reject Shop in July in the post “Sufferin’ Stock-o-tash – 6 stocks that have been pummelled”.

If you had told me that 4 months later, the share price would have fallen a further 63%, I’d have laughed and said “impossible!” – which brings me back to my opening comment.  I still have trouble opening my mind to even worst case scenarios despite everything I’ve seen!

The Reject Shop’s share price hasn’t been this low since it first listed on the ASX 14 years ago – after which point the price soared to $14 three years later, hitting an all-time high of $18.60 in July 2010.

It’s been a heck of a wild ride since then as you can see above!

So what’s going on with the Reject Shop?  Why is the Market REJECTING this company big time?

Fund Performance Update October 2018 – Bloodbath! (or just a few scrapes…)

Well what a fun month that was!  For the first time in Fund history (which isn’t very long), every single stock was down for the month – and not just by a smidge, but an average 10%!  I’m sure Indexing Ian felt the pain too – hopefully enough to keep me ahead for the 3rd month in a row.

So let’s check the damage from the October 2018 Fully Franked Fund performance.

Current Portfolio

Gary’s Global Fund Update October 2018 – and Some Long-Awaited Additions

Wow – where the heck has the time gone!

It seems like only yesterday I put half my funds into a Global index investment (VGS), and bought my first and only individual stock in the fund so far, Disney.

But that was all the way back in April and Early May – half a year ago!

After my last three shortlist stocks ran away from me (and unfortunately continue to do so!) I’ve obviously been sitting quietly on the sidelines, keeping myself busy with other activities, all the while my cash balance keeps accumulating.

I’m itching to put some of this to work now – it’s starting to burn a hole in my pocket!

There are plenty of new ideas and purchases from all our international investment blogging friends, but before I run through my new additions, it’s worth looking back on the past 6 months to see how the Global Fund has been tracking…

Fund Performance Update September 2018 – Stayin’ Alive (and Ahead)

Man, do I have a story for you to explain my absence for another month!  You thought being kidnapped by Indexing Ian was crazy!  Well, about 4 weeks ago, I was minding my own business, when…. um…..

OK, you got me.  I have no excuse for my absence, other than my attention being fully diverted elsewhere for the past month or so.

I’ve paid very little attention to the stock market over that time, and was pleasantly surprised to see that there had been a ‘BLOOD BATH’ in the markets! (as some media articles told me at least):

With great fascination, I jumped on line to discover how the stock price slaughter was playing out, only to discover….…

Fund Performance Update August 2018 – Frankie Flies Ahead (Finally!)

Fear not dear Fully-Franked-Followers – I AM ALIVE!

Indexing Ian was so distraught when he discovered the Fully Franked Fund performance was about to blast past his Index Investments, that he kidnapped me!!  I was attacked from behind, blindfolded, thrown into a van and taken on a wild drive to an abandoned warehouse in the middle of nowhere.  When the blindfold came off, there was Ian, grinning at me manically while I was tied to a chair, telling me my official August 2018 results would never see the light of day.

After many days with little food or water, I realised I was going to have to outwit him to ever escape alive.  “Hey Ian”, I said, “how do you feel about that increase to the Management Fee on your VAS index fund of 0.03%?”

“What increase!?!” he said, “Are you kidding me!?  I’m going to march into those Vanguard offices right now and sort this out!  There’s no way they are charging me an extra 0.03% just for following an index!  Don’t they know who I am? I’m INDEXING IAN damn it!”

It was shortly after he left when I made my daring escape, found the nearest computer and wifi connection, and finally released this post….…

Picking the ‘I’s out of the Index

OK Frankie – you’ve woken me from my slumber.

One of your 7 stocks has single-handedly launched your portfolio ahead of mine – for only the first time since we began 6 months ago by the way – and cast a shadow over my simple index investing approach.

I may never see such a huge move in my investments, but I sleep very easy at night.

It’s very easy to forget that I don’t just have two investments in VAS and VSO – I actually own hundreds of individual stocks.

Let’s start with VAS – the Vanguard Australian Shares Index ETF. This holds every stock in the S&P ASX 300 Index, i.e. the biggest 300 (give or take) companies in Australia.  As at 1 August 2018, there are 297 separate companies I effectively own a piece of:

Fund Performance Update July 2018 – Frankie Fights Back!

We’re already 10 days into August, and I’m finally here to share the Fully Franked Fund performance for July 2018.

But the timing is actually Fantastic, as one of the Fund members has EXPLODED today – in a good way! More on that soon…

I also have two new stocks in the Fund as I shared in the last post – IOOF and Platinum Asset Management, but they won’t show up until the August 2018 results are presented.

But let’s look at where things stood at the end of July 2018…

Current Portfolio

 

The end of July marked three months in a row with no purchases – until our recent look at 6 suffering stocks, two of which have since been added to the fund post 31 July 2018.

As usual, another $2,000 of cash has gone in, increasing the cash balance to $21,485, and the share portfolio has increased by $1,126, sitting at $41,421.

Individual Stock Returns

 

 The tide appears to be turning – we now have three stocks in the green.

Baby Bunting has been the big mover this month, adding $740 to the Fund to go from red to green (but wait until you hear about what it’s done today!)…

“Sufferin’ Stock-o-tash!” – 6 promising stocks that have been pummeled

I’ve said it many times before already – I’m a sucker for a suffering stock.

They provide great opportunities to buy a collection of assets for a great price, as long as the potential is there for the market to get excited about the business again – and bestow a premium valuation on it once more.

There are hundreds of ways to look for new investment ideas, but one of my favourites is to look at those where the stock price has been hit hard.  If that is combined with a cheap valuation and solid long-term prospects – and you can avoid the perilous value-trap – it’s a path to potentially big returns.

With that in mind, here are 6 new stock ideas I’ve had my eyes on which have been hammered recently.  You might notice a bit of a Financial Services Flavour to the First Four……

The Global Stocks That Got Away

As a guiding principle with investing, being patient, and even doing nothing, are very good traits to live by.

Unfortunately for value-based investors like me and Frankie, those traits can also mean missing out on great opportunities from time to time.

And so it goes with my first shortlists of US based stock ideas.

You may recall the three stock ideas I was considering back on 10 June 2018, some 43 days ago now:

I was a little slow in making the decision, so Frankie had a look at these about two weeks later, speculating on how the changes in share prices over that period might affect my decision to invest in any of these stocks.  The question was whether I would be ‘anchored’ to the prices on the date of my original analysis, and / or whether I had set a price ‘threshold’ under which I would buy:…