Mr. Candyman Cents

Investing and personal finance

New Year – new goals

It is time for a brand new 2021 post.

I have made some adjustments to my portfolio:

  1. I stopped adding funds to my P2P account.

I was never a big fan of P2P investing. In my part of the world, P2P lending platform customers mostly are not able to get loans in the bank and therefore use P2P lending companies as a last resort. Most of the time there are valid reasons why banks do not provide loans but, in my opinion, P2P lending is using the situation to get extra cash. Yes, I understand there are risks involved and we live in the free-market therefore P2P lending companies have and can charge higher interest rates. Anyway, I decided I do not want to be a part of this. All income from P2P lending will be shifted towards the share market.

  1. Cherry-picking

Just after New Year’s, I have added some funds to my share trading account (I hope it is a good sign and an excellent start to 2021). Most of the investors are obsessed with cherry-picking or finding a magic formula for company picking. I decided to form some of my own strategies and follow a different way for selecting companies: market capitalization around $ 200m – $ 750m, debt up to around 20% of market capitalization, gross profit more than 30% of market capitalization, and positive EPS. It is a good sign to find a substantial free cash flow amount in the income statement. Another good sign – recently reported company officer dealing. I consider companies meeting the criteria to be successful and with high potential. There is a high potential to grow or be acquired by larger companies. Looking forward to reverting to this post at some point in the future and checking if I made the correct choice.

The next topics I am looking forward to diving into are trading on margin and following how does company earnings report affects the share price. I am especially interested in the earnings report for companies that investors have high expectations of – what happens with the share price in two weeks period before and after earnings reports are published.

First post

Hi! I am super excited to start writing my first blog post. If you wish to get to know me better – please also read the About me section.

I have shared my portfolio information which can be found in the My trades section. I would very much appreciate feedback on the trades I listed.

Currently, a hot topic is COVID19 and vaccine from it. There are three front runners: Pfizer and BioNTech, Moderna, and AstraZeneca together with Oxford. Moderna, Pfizer with BioNTech reported better vaccine results compared to AstraZeneca together with Oxford. I decided to get some Moderna shares over Pfizer with BioNTech due to logistical reasons. I consider it is more expensive to distribute Pfizer with BioNTech vaccine which has to be stored at -70 degrees Celsius (super cold). However, Moderna can be stored only at -20 Celsius (more like a regular freezer). I got 6 Moderna shares @ USD 89.33

I am not planning to invest further in this opportunity as it appears all companies have limits in place for the production capacity. I mean it does not matter how good Moderna or other company is. It can produce only X amount of vaccines per year. Based on online research, it appears all three front runners have reached most of the capacity in pre-orders.