Bloody SingNet and a Few Updates

Damn SingNet connection has been giving me big problems recently. Lost my internet connection back at home and apparently SingNet couldn't find out what's the problem. I'll only be able to update on our portfolio once they got it resolved.


Meanwhile, it seems like we have been pretty lucky for the past week. If you have been following my trades, we would have taken profit on MGM Resorts International before the stock tumbled due to the disappointing result expectation.


The rest of our current portfolio seems to be doing ok. Iron Mountain is slowly climbing back since 5 Oct 2010. The company stock is now trading around $21.50 for a paper profit of about 3.8%. I've managed to enter Quiksilver Inc at the price of $4.16 and this counter is sitting comfortably at $4.38 now. Rick's Cabaret is also doing well at $7.49 now. That's about 7% in the money for us. Ezra Holdings from SGX is trading at $1.87 before dropping to $1.82 today. Anyway, we'll be holding this till the rights shares are available for trading.


Most of you would have already noticed we've been selling of alot of our positions and holding on to some cash. I'm waiting for the market to tank a little before trying to find for some good counters that's been trading at discounted prices.


Be patient and good luck ahead!

NASDAQ : Rick's Cabaret International

Rick's Cabaret International (RICK)
Rick's Cabaret International is a company that operates upscale gentlemen's clubs and restaurants. They have been making some decent profits at the first half of the year. The 3Q result was just released and it's a little disappointing. For the 3Q, the company made just approx $850,000 or $0.09 per share. This is actually less than half of the profits from a year ago. However, the year-to-date profit of $4.58mil is an improvement comparing to 2009's $3.41mil for the first 9 months.


The stock has came down a long way since March 2010 from $16 to the current value of approx $7. I value this stock for 3 main reasons :
- it's a profit making company and is actively acquiring lots of smaller clubs recently
- it has a pretty healthy balance sheet and I believe the company will be fairing much better as the economy recovers
- this industry has a pretty high bearer of entry and I don't foresee much of the competition that can compare with Rick's


Technically, the counter has broken the downward trendline. I believe this counter should start to move uptrend instead of the downtrend over the past 6 months. This could be a mid-long term counter and I'm prepared to hold it for a while.


Entry point : Now (whatever price below US$7)
Cut-loss : Approx US$6


*Note : This is a company that operated within a "sinful" industry. To put it blatantly, Rick's operated strip clubs so if it's against your morale principles to deal with anything "unethical", please avoid this counter.