Friday, June 9, 2017

"Jun 17" - SG Transactions & Portfolio Update"

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
CDL Hospitality Trust
60,000
1.61
96,600.00
16.0%
2.
Fraser Logistic Trust
80,000
1.05
84,000.00
14.0%
3.
M1
35,000
2.25
78,750.00
13.0%
4.
Comfortdelgro
30,000
2.42
72,600.00
12.0%
5.
Capitalmall Trust
30,000
1.92
57,600.00
9.0%
6.
Fraser Comm Trust
40,000
1.40
56,000.00
9.0%
7.
Singtel
10,000
3.75
37,500.00
6.0%
8.
First Reit
8,134
1.32
10,736.00
1.0%
9.
OCBC
34
10.69
     356.00
1.0%
10.
Warchest*
116,000.00
19.0%
Total SGD
610,142.00
100.00%

I am updating the Jun portfolio a bit early this month as I foresee I will be very busy when I return to work from my 2 weeks leave right the following Monday. It's been nice having time away from work with the family where the highlights have been going together to the Safari and also the Cimory side of the mountaneous area.




The theme this month is trying to increase some cash position in the portfolio as I start to review and do some portfolio rebalancing. I've previously posted on my thoughts here.

My portfolio has also shrink to just a couple of positions and is now really a matter of the top few that matters.

First, I started the month by divesting my position with Ireits at 75.5 cents at a 20.7% gain which I have written over here. My thesis stems from the idea that I think there are limited room to run from valuations view and the only saving grace is their 7.5% yield (90% payout) with a series of their freehold commercial properties. I also think that there are rights issue looming so I'd be interested to re-enter at the right price again.

Next, I also divested my position with Far East Hospitality Trust at 65.5 cents at a 12.6% gain which I have written over here. The thesis for this is due to the recent run up in share price due to the surging news of the hospitality come back and the share price has run up about 10% since. There is also a huge block of selling queue at 66 cents which I think is hard for them to break hence I have divested first meanwhile to allocate those profits back to cash.

I have also divested my position with Lippomall Indonesia Trust (LMIRT) at 42.5 cents at a 18.3% gain. Their TTM dividend yield stands at around 8.1% and I'd be frank enough to say that I would expect more given the risk profile that the company has. The company has an ambitious plan by growing their AUM and we'll see a lot of M&A news in the next few years. The recent few days with the acquisition of Lippo Kendari is one of them. While they'd be funding it with perpetual securities, the interest costs on the perpetual costs are pretty high, and if I recall is around 5.5% and north. I think with election coming in 2018 in Indonesia, we'll see better entry point for LMIRT next year possibly.

I have also divested my position with Micro-Mechanics at $1.26 at a 55% gain. This isn't a big position by itself and semicon companies have seen their fair share of run-up in the first half of this year to account for its bullishness. MM trades at 13x earnings and I'm just not sure if the bullishness has much been priced in. After all, we know that it's a cyclical industry in nature and much of their earnings need to be normalized in the long run if one wants to keep it long term.

I have also closed my position with Elec & Eltek at $1.58 at a 10.2% gain. This is meant to be a short term trading position and have reached my target of 10% gain which I have decided to close off the position.

On the buy side, I have accumulated 19,000 more shares of Comfortdelgro at $2.41 with the running thesis that I think from valuations view they are decently priced. On a nutshell, the same thesis revolves around the idea that I think the public transport this year will offset the weakness in taxi business while DTL remains an unknown factor because of the costs that might creep in. I also felt that market is discounting the management M&A abilities which have in the past generated decent ROI. I also think that the fact the management increases their final dividend last year spells confident in what they have in terms of cashflow moving forward.

I have also bought 30,000 shares of Capitalmall Trust at $1.92 for a short term trading position. The idea is just simply that $1.92 represents a good entry point because of its strong support and also its very near to 1x of their book value, by contrast to their peers of FCT and MCT which are trading at above 1.1x.

Net Worth Portfolio

Due to the strong performance of Fraser Logistic Trust mainly this month, the portfolio has grown from the previous month of $599,930 to $610,143 this month (+1.7% month on month, +43% year on year).

Cash position is at the comfortable range of near to 20% as I look to increasingly increase this position as some of the companies valuations are going up and making it less attractive to allocate.




Child Portfolio 1 (Age: 3 years and 1 month)

I'd also like to use this chance to update on the Child portfolio a little bit as I made changes which I forgot to update last month as I switched from ST Eng to Singtel. Nothing much changes going on other from here.

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
Singtel
3,500
3.75
13,125
100.0%


Child Portfolio 2 (Age: 5 month)

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
Singtel
800
3.75
3,000
100.0%


Thanks for reading.

How has your half yearly June been so far in terms of performance?



12 comments:

  1. What is yr take on Starhub? Price like quite low..

    Any reason u chose M1 over Starhub?

    ReplyDelete
    Replies
    1. Hi Anonymous

      I chose M1 previously as their valuation is a lot cheaper and they have a catalyst rumor on the privatization. Rather than Starhub, I might rather get Singtel if I wanted proper exposure to telcos.

      Delete
  2. Hi B
    I have comfort delgro and SingTel?
    How do you think on their Long term prospect?

    ReplyDelete
    Replies
    1. Hi Yeh

      Long term prospect I think won't be an issue as they are still reeping in cashflow to the business and EV of the company will increase making it more attractive each year goes past.

      I think it presents a decent value entry at this point for the long run, the market is discounting on the weakness a bit too much at this point, the taxi business for comfort and the 4th telcos for Singtel.

      I think it'll work out just fine and just another corporate challenges for the company which they will manage to get past this round.

      Delete
  3. Hi B,


    Congrats on your good achievement.

    Can i have your views on a few questions:
    1. Do you believe buying stock is like buying a business?
    2. Do you have any counter that you have been holding for more than 3 years and never ever sell even once and but back?
    3. I think majority of your holding are Blue chips. Will you consider buying a small cap counter and hold it until it turns to be bigger cap or maybe Blue chips?
    4. What is your highest return so far in term of % to your capital in the counter? And what is your total holding period?
    5. What is your highest loss so far in term of the % to your capital? What what is your holding period?

    Looking forward learning more from you. Thanks!

    ReplyDelete
    Replies
    1. Hi Anonymous

      All very good questions.

      Too long for me to type here if you'd like to discuss, we can discuss it via private email if you don't mind :)

      Delete
  4. You have a nice amount invested. Ever think about geographical dividend retirement? Move to one of the cheaper countries nearby and retire way earlier than would happen if you stayed in Singapore?

    ReplyDelete
    Replies
    1. Hi MrDD

      Not at this moment, I think companies these days have global presence anyway so we are all in a way exposed to geographical diversification and forex risk representation one way or another.

      Delete
  5. Hi B,
    Thank you for sharing. I've been inspired by your articles and have wanted to start investing. But I'm clueless on starting. Do you suggest I go with POSB Invest Saver?

    ReplyDelete
    Replies
    1. Hi

      Yes, the posb invest saver is a good choice because it allows you to dollar cost average each month with a fixed amount and meanwhile you can focus your energy elsewhere to get better things.

      Unless you are absolutely certain you like buying or selling your own stock, then I think the effort would rather be spent on the invest saver :)

      Delete
  6. Hi B,

    I just started following your blog recently and I'm also relatively new to investing. I saw that you are also vested in CDG (me too!) so will like to get your thoughts/view on it. Do you think this is a good time to average down (believing that the fundamentals are still strong and stock is overly beaten down?) or would you cut loss and exit completely? I like to believe it's the first scenario but I could be biased since I'm vested.

    Look forward to hearing from you.

    Rgds,
    Shirlynn

    ReplyDelete
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