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Thursday, July 21, 2011

If I bought these stocks.

I have mentioned some good buy sign of US stocks in my previous blogs, I summarize it as below:

19.10.2011 - AMED, AFAM
21.10.2010 - AAPL
31.10.2010 - LANC, PTI

Now let's do a simple assumption if I have SGD$10,000 and I bought $2,000 on each stock and hold it upto today what will happen?


Date
Stks
Invest
SGD
Invest
USD
Price
(bought)
No. of
Shares
Price
(current)
Amt
(USD)
Amt
(SGD)
19.10.11AMED$2,000 $1,538 $25 61.54 $26 $1,600 $1,941
19.10.11AFAM$2,000 $1,538 $31 49.63 $25 $1,241 $1,505
21.10.11AAPL$2,000 $1,538 $316 4.87 $387 $1,884 $2,286
31.10.11LANC$2,000 $1,538 $50 30.77 $63 $1,938 $2,352
31.10.11PTI$2,000 $1,550 $21 73.83 $15 $1,107 $1,344
Total $10,000 $7,704    $7,771 $9,427


We can noticed that in US dollar term no gain no lost, but if we take into consideration of SGD appreciated about 6% during that period eventually I have encountered a capital lost of $600.

In conclusion my stock picking method have to be further fine tuned and if we want to invest into US stock market we must be aware of the potential currency exchange rate risk.