Hello everyone, this week I have sold two equities entirely as they were making a huge loss in comparison to the rest of my investment, they are Douglas Dynamics and National Oilwell Varco Inc.
Besides that, I have conducted some more research in terms of looking for a new investment as the money gained from selling the previous equities. I used the bloomberg function EQS, and looking for company that PE ratio that is more than 50 in the FTSE250 index, and discover there are 19 stocks that have a PE ratio that is more than 50. However, when I use FTSE100 as a benchmark to backtest, that is a clear under performance of those stocks. Therefore, no new purchases have been made.
At the same time, I also looking for new stocks by using the same function. But this time the criteria has been changed to stocks that has a dividend yield more than 5%, 24 equities were discovered from FTSE250 index. After a carefully consideration by using backtesting with FTSE100, turns out the equities in FTSE250 that has a dividend yield more than 5%, are also under performing in the market. Therefore, no new purchase has been made due to that new criteria too.
As a conclusion, there is no new equities have been purchased, and two of the equities that is making a loss have been sold. Further investigation in term of stocks evaluation and new equities discovering will be conduct on next week.
Thank you.
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