My second SNAPS portfolio

12th Aug '18 by favono

2 comments 2944 reads

It is time to summarize my second SNAPS portfolio. As with the last portfolio it is not a complete portfolio with 20 stocks, this time my portfolio had 9 stocks (up from 7 last time). My first SNAPS portfolio is described in another post.

The stocks were chosen from the same markets as last time (Norway, Sweden, Denmark, Finland, Germany) and the screen looked like this:

Stockrank rating higher than 90 (80 for Telecoms and Utilities due to few hits…)
Stockrank style excludes Falling star, Momentum trap, Value trap, Sucker stock
Piotroski F-score 6 or higher
Size group excludes Micro cap
Spread 500 or less
Mkt cap greater than 20 £m

From the list of companies, I tried to choose companies that looked to be in a positive trend.

I bought the stocks during the first week of January. Mid-February the Stockrank rating of three of the stocks had fallen significantly and I decided to sell them and replace them with new stocks. I based this decision on the fact that since the stocks were bought mainly based on Stockrank ratings it made sense to sell if the Stockrank ratings fell significantly. I’d be interested to hear other opinions on this choice.

I was supposed to sell the stocks first week of July, but it was a very busy time for me and then I went away on vacation. In addition the portfolio this round have been a lot more volatile than the previous one and the first week of July the numbers did not look good. I decided to wait until after I came back from vacation and ended up selling the stocks last week of July and luckily the numbers were significantly better then.

The portfolio is shown below. I tried for equal weighting (spending about the same amount on each stock). KNOW was transferred from the previous portfolio, but I sold of a few of the shares to get the correct weighting. I have indicated both the percentage change in stock price (the actual price I bought and sold at), the change in value (stock price change including dividends) and my relative gain/loss which includes transaction costs, exchange rates, dividends etc.

Company	Sector	Stock price	Price incl div	My gain/loss
SZG	Basic materials	-14,4%	-13,5%	-17,3%
NESTE	Energy	33,6%…

Unlock with Email

Unlock with Google

Already have an account?
Login here

john2

13th Aug '18

I tried a similar strategy starting in June, buying £5000 worth of 20 different European stocks with a high stock rank and a market cap > £50 million. So far my European portfolio is down 2.7%, and I'm interested to hear that you have also found the market unpromising.

I have adopted a different approach to you to weeding out underperformers - I sell when a stock falls through a trailing stop loss of 15%. So far I have sold 4 of my 20 stocks for this reason. This is a rather more conventional strategy than selling on falling stock rank, and would have avoided your >30% loss in ADD. I think it important to rigidly apply some method of limiting my losses since I am investing in companies the vast majority of which I have never heard of.

Rusty2

14th Aug '18

I also hold some European shares, I would say they have not done so well this year, last year I was picking up many that performed very well such as WSU, 1COV, BESI, HOLCO, WAF, this year it's not happening and some have fallen back quite heavily recently. So I do agree about the market.
The other problem is you can't sell out quickly if there is a problem, as I found out today. Also my broker does not have stop losses on foreign shares. Also the costs of trading are higher. So at the moment I'm not adding many European shares to my portfolio.

My second SNAPS portfolio

Unlock the rest of this article with a 14 day trial

About the Author

Favono

2 comments

Unlock the metrics for all these stocks and more...

Unlock the metrics for all these stocks and more...