It's been a great year in NoNameStocks land. I'm up 35.7%, giving me a 50.3% CAGR since I bought my first stock 8 years ago.
You can read my past annual performance posts here.
Below is my portfolio allocation. You can compare back to last year to see what's new.
Today I'm filled with gratitude and pride. Getting laid off in Jan 2013 pushed me into the financial world.
Growing up I had done what I thought required: I did well in school and got a good job. My performance reviews exceeded expectations. I was supposed to be all set, but missing in that singular vision was diversification and financial independence. My family and I were locked up by the golden handcuffs. As I started a new 9-5 engineering job I also began a financial path with no clarity but full of hope. My heart driving towards a light at the end of the tunnel. With much help I am almost there.
My biggest win from the past year is buying a house. 100% of the down payment paid for with stock gains!! My engineering career has afforded us a very comfortable life but that life comes with a price. It's a 40 year savings plan you can't draw from until your kids are long gone and your body is tired. You're constantly on the edge of a downsizing or company change in direction. I'm proud to say my stock gains have outpaced my engineering compensation in each of the past 4 years.
Thank you to all of you for helping me along my path. Thank you for reading, thank you for the comments and the ideas. Huge thank you to my mentor for the education and patience, thanks for always responding. And thank you to HEMA and BMRA for the down payment.
Ok enough with the sappy stuff, let's see some charts!!
We can file this one under winner and loser. You may have heard me talk about UUU before. It was small and cheap but losing money (sound familiar?...). Over the years I've sold into those spikes a few times as the stock moved sideways and down. Over the summer I sold into this wonderful rise near $4. Not bad, right?
Well not so fast. What has happened since is why I try to hold out.
That rise I sold into doesn't look so impressive anymore does it. UUU had made a fundamental change I underestimated. They sold off the money losing JV and put up a $0.31 quarter in September. Not bad for an ugly junk stock that was at $0.50 only 6 months prior. I made 4x and missed out on 4x more. On top of that I had let the position size get too small so my gain didn't have as big an impact as it should have.
One of my challenges of the past year, which I still have not sorted out, is how to devote enough time to stocks while working from home. I should have been on top of UUU.
This one could be called a missed chance. A year ago the stock ran up from $0.80 to $3.00 on covid sanitizer spray hopes and I did nothing. Now the stock is back in the $0.80s. HYDI was my largest holding during that peak and now it's middle of the pack. The company has fallen behind on filings and any stock drops in the void of darkness.
The main reason I didn't sell HYDI into that rise was the low volume. Even though the rise was only over a month it was still sort of slow and steady. When a stock is just walking up I have a hard time selling. If it would spike from $1 to $3 in a day I'd likely sell depending on the news but when it's moving a little bit every day it's hard to say when it'll end.
I always wonder what's next. What if more news was on the way? What if a big order was coming? What if a $0.30 Q was coming to HYDI as it did for UUU?
Here's another missed opportunity. I wrote up CEMI in Sept 2020 at $3.51 and immediately the stock started a rise. My thesis was a single press release would drive a big spike to sell into. With spikes it's the percent movement that matters, not the absolute dollar value. A high volume spike gives you a very high chance of a lower price tomorrow so you might as well sell today. With a slow rise you don't have that certainty so why sell.
As CEMI rose through $4 and to $5 I started licking my lips. Any day now the FDA news would come and I'd get a spike. I was sure of it, why else would it be moving? I'm expecting a 100% spike and this slow rise was just raising the floor. As the stock moved up through $7 and to $8 I could see double digits. If the press release would have come I would've sold in a heartbeat and realized a 4x gain. But alas it was not to be and the stock fell all the way back down.
A few weeks ago the stock was back down and the press release came. I got my spike and sold into it. I didn't catch the peak but not a bad gain and I was out at $5. Now the stock is back where it started and after things settle I may buy back in.
Funny how it worked out. I got my spike and made some money but missed out on a lot more because I didn't sell at the peak. Another stock seemingly held too long.
EKCS is one of my best performing stocks all time, percentage wise. I'm up around 4000%. Another stock I've held for years, and also another stock I've missed sales on before. Recently they announced a huge contract, shooting the stock up about 700% in a day and it has held up.
Take a look at this 5 year chart. What a beauty. If you ever hear me talk about how a single contract or press release can dramatically change the value of a tiny company, this is your example.
But there's more in this chart. That jump in early 2018 is the lesson of patience. Just look at how dramatic it was at the time.
I missed that spike but held onto my shares. I bought more as time went on. Patience and optimism paid off and now I'm way up on EKCS. You know, that EKCS 2018 spike doesn't look too different from what HYDI did this past year...
This is why I hang onto these tiny little stocks. This is why I didn't sell CEMI or HYDI at their peaks. I am trying to make life changing money and I see opportunities in my future. Hopefully I can grab them.
Now for the craziest stock movement ever. You may remember I wrote up IOMT when the market cap was $2 about 4 years ago. The stock is super illiquid, trading only a handful of times per year. I have only got shares 3 times over the past 5 years even though I've had an open order for probably a third of that. The stock has moved between a very small fraction of a penny (that's how you get a $2 market cap) up to about $0.10. Months would go by without any transactions.
Well about 2 months ago shares started trading. IOMT has seen more volume in the past couple months than the past 8 years. The stock has gone as high as $1.50! I wrote up the stock at $0.000001 (not a typo) and bought most of my shares at $0.01. Let that sink in.
Historically they file their annual in April so my optimistic side was running wild. Maybe there's good news coming that has leaked out. Maybe we have a buyout. I've always thought the stock might be worth a buck or two in a sale. I emailed the company and they didn't even know the stock had moved, lol. There's no reason the company knows of. No news to report and no idea why anyone would be buying. In fact their annual will be coming out in the fall due to Covid just like last year.
So here I am with another stock that has moved up and come back down. I haven't sold any IOMT and only time will tell if that's a mistake. Why would someone be buying a penny stock for $1.50?
disclosure: long all the stocks in my portfolio picture