A massive loss in the final quarter of FY15 (ended Mac15) for Complete has made its overall FY15 result looked ugly. Apple shares have surged 80% year to date through Thursday’s close, including a 14% gain so far in the fourth quarter. For other unique boutique s like Gtronic, Inari, Latitude & Scientex, I have discussed about them many times and there is nothing much to discuss here. I sold all its shares but only after it has retreated from its highest point, as this “opportunistic investment” has done its job and I planned to limit my portfolio to maximum 15 stocks. I wish to limit my exposure to export stocks unless there is one which is selling really cheap but I doubt whether there is any. I don’t mean that export-orientated stocks will not perform well in 2016. Actually I hope that they will, because export stocks still make up 80% of my latest portfolio.
However, I think it still has some growth potential especially the impending contract renewal with revised rate for its facility management service with states government. My fascination with ride sharing goes back to June 2014, when I tried to value Uber and failed spectacularly in forecasting how much and how quickly ride sharing would change the face of car service around the world. Most of those stocks have significant forex gain which were classified under “other operating income”, perhaps from their USD denominated cash or receivables etc, when there was a sudden jump in USD value. Many of them, after all, have been suggesting that you stay out of stocks for the last five years or longer and it would have to be a large correction for you to make back what you lost from staying on the sidelines. People will keep a large quantity of contact lens in stock at home, to make sure that they never run out.
It is also expanding its management service to include private sector and healthcare facilities lately, and the new business acquisition (plumbing & rain water harvest system) will make it a more complete service provider. The loss is an one-off impairment loss on vessel sales, as the company is trimming its shipping segment while expanding its land logistics business by building three more new warehouses. Anyway, it is a very small company without consistent dividend payout. Anyway, it’s still a successful investment with slightly more than 100% gain in slightly more than one year. As personally I don’t expect MYR to further depreciate against the USD in 2016, I will try to avoid such stocks unless it has great growth potential and still not too overvalued. It is an export stock which is supposed to be a beneficiary of strong USD but it made massive loss from stronger USD due to unfavourable currency hedging. Despite the loss in 2 consecutive financial years, its cash flow is actually not bad and it is paring down its borrowings in the same manner as Hevea.