Stock Picking – March 2022
Each month I will be hypothetically picking individual shares to invest with using a pre-determined criteria outlined in this POST.
Below is a breakdown of where I currently am on my Stock Picking Simulations. You can find a full summary of the journey since I began in May 2021 HERE
I use Sharesight for tracking of the performances as it is easy to use and is a great tracking tool for shares. The only issue is that I cannot completely separate the stock picking from the baseline comparison, but it is only a small issue and nothing that is going to concern me too much.
Current Performance
Shares Owned – As of 19/3/2022
Baseline Comparison – As Of 19/3/2022
As you can see on the above table, passive investing is ahead by a couple thousand at the moment. There has been a bit of a drop in a few of the individual stocks which has definitely hurt their performance. Although it is worth mentioning that there was an ex-dividend date with some dividends to be received in April, so it is slightly deceptive at the moment.
Below is a summary of the performances of each portfolio over the past month – since 18th February 2022.
As you can see, overall, it has been a fairly mixed result for the individual holdings. RIO and SUL went down a fair bit in capital gain, but there were some dividends at least to give some boost to the overall earnings. MTS was the big winner of the month, going up around 9% over the past month.
A200 had a reasonably good month as well, going up pretty well after a poor month last month.
Checking Existing Holdings
1st Criteria: PE Ratio between 11 and 22
2nd Criteria: Grossed Up Yield over 4.50%
3rd Criteria: Maximum Debt to Equity Ratio less than 100%
4th Criteria: 50-day SMA on a five-year chart showing the price not in a downtrend
Above is a table summary of the required criteria.
March 2022 Selection
With regards to purchasing a new share, RIO and CSR are the only two listings I currently own that meet the required criteria. I mentioned last month that I was concerned about the weighting I have on RIO, so below is a breakdown of the weightings I have of the individual listings.
27.71% isn’t quite as high as I thought it would be, but I don’t think I would want it to get any higher. This month I might just look at purchasing CSR only as it meets the criteria and is relatively low weighted.
Stock Selection
I will make the following selection:
- Buy 2,521 shares of CSR at $5.95 per share for $14,999.95
My comparison purchase will be 120 shares of A200 at $124.70 per share for $14,964.00
Summary of Holdings in the following table:
Review of Existing Listings
Lastly, I wanted to go back and look at my listings and see if there are some overall trends of some of the listings consistently missing the required criteria.
Next month I might go more into a detailed discussion about the above summaries, but it is also something I am going to include going forward.