Thursday, July 10, 2014

"Jul 14" - SG Transactions & Portfolio Update" + Child Portfolio

No.
Counters
No. of Lots
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
FraserCenter Point Trust
30
1.865
55,950.00
22.0%
2.
Vicom
6
6.77
40,620.00
15.0%
3.
SembCorp Ind
5
5.40
27,000.00
10.0%
4.
SPH
5
4.17
20,850.00
8.0%
5.
Ascott Reit
15
1.255
18,825.00
7.0%
6.
Mapletree Greater China Commercial Trust
20
0.89
17,800.00
7.0%
7.
China Merchant Pacific
19
0.92
17,480.00
6.0%
8.
FraserCommercial Trust
11
1.38
15,180.00
5.0%
9.
Neratel
20
0.765
15,300.00
5.0%
10.
First Reit
10
1.20
12,000.00
4.0%
11.
ST Engineering
4
3.77
15,080.00
5.0%
12.
Second Chance
13
0.47
6,110.00
2.0%
13.
Ascendas Hosp. Trust
7
0.75
5,250.00
2.0%
14.
Stamford Land
3
0.66
1,980.00
1.0%

Total SGD


269,425.00
100.00%

This month portfolio increase has been largely boosted by the surging for Vicom in recent weeks. It appears that investors are expecting a good result for the 2nd Quarter and a potential increase in their dividend payout. What had remained the same is probably the positive FCF they are generating quarter to quarter. But we'll see if they decide to do anything with its humongous cash they had in their asset. Multiples now stand at an all time high of 22x based on current earnings and the market had positively priced this upward.
In addition, I added more CMP and ST Engineering at $0.915 and $3.77 respectively for the month of Jul. For analysis on CMP, you may want to refer to investmentmoats for his thorough analysis on CMP for the last couple of results. My impression for CMP remains that 1.) they are well generating FCF comfortably and 2.) it appears that the management is trying to increase their payout ratio so that it will generate more interests from retail investors to increase the price beyond its convertible option exercise price. I may be wrong in my understanding here.
For the latter, I am looking at more stability and defensive stock to add on. While I do not expect them to increase their payout ratio beyond what is already high at 90+%, I think their book order for next year is stable and should give them in line at least to what they had for FY13.


Child Portfolio

No.
Counters
No. of Lots
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
ST Engineering
2
3.77
7,540.00
100.0%

In addition to my own portfolio, I've also decided to start managing my son's angbao money by investing in what I "think" will be stable for the next 20 years. I've also topped up a bit on top of what he already has.
Based on a couple of responses I received in my previous post (What should I do with the savings for my child), I've decided to go with the savings bank account option (for dividend and other angbao money) and investing (stock for now) option. The endowment plan may seems like a good option to diversify but since the amount is too small, I do not want to divide them into all the options available.
So this is it, ST Engineering - this will be entirely his and the strategy will be entirely different with what I have in my portfolio. The plan is to stay through the thick and thin for the next 20 years and I will not be surprised to see a couple of up and down along the way.


What about you? How is your portfolio doing for this month? Any shock or upside?

17 comments:

  1. Thanks for sharing your inspiring portfolio. For myself, it is still at a stage of "negligible". Just curious, you've accumulated this portfolio since when?

    ReplyDelete
    Replies
    1. Hi Richard

      I'm glad that it inspired rather than giving an impression of showing off which is definitely not my intention. I started purchasing stocks in the middle of 2011, so to date it should be around 3 years now.

      Delete
  2. Nice to see such a inspiring portfolio. Dividends are already self sustaining the portfolio. Compound for many years to come.

    I wish i can be like you some day. Just a uni student.

    ReplyDelete
    Replies
    1. Hi Augmentin

      Thanks for your kind comment.

      Compounding does play an important role, especially in certain months where the incoming dividends can be used to sustain my expenses in a few months.

      My advice to you is start young, it definitely gives you a whole lot advantage in terms of time to compound. Don't be like me, be a step better than me. I can you can everyone can :)

      Delete
    2. Yea, im taking a look at ST Engg based on your "child Portfolio". Thats the only thing i can afford to invest. Researching bout ST before taking the plunge.

      Delete
    3. That's actually a very good start on your part. Not many uni students can afford a stock like ST Eng which costs more than $3k. This will grow over time as you gets older and especially after you start working.

      Delete
  3. Your son's ang pow money really big!

    ReplyDelete
    Replies
    1. Hi Uncle CW

      It is his angbao money for his birth day and 1st month baby shower that came mostly from grandparents. I am certain that these amounts are no way near what they are going to be in the next couple of years, unless I topped up for him of course, which I planned to do so during his birthday ;)

      Delete
  4. Hi B, do you keep anything for emergency fund?

    ReplyDelete
    Replies
    1. Hi Anonymous

      Yes, I do keep an emergency fund of somewhere between $8k to $10k, thats about 5 months of expenses for our family. I don't keep too much because I can still utilize other forms such as credit card for example.

      Delete
  5. Care to share how much you paid for CMP when you first bought into it ?

    ReplyDelete
    Replies
    1. Hi Betta man

      I started purchasing CMP in July last year at about $0.865. I scaled upwards after learning more about them. I think the fundamentals are still solid.

      Delete
  6. Hi B,

    Why did you buy in ST Engineering at this price? Is it because of some valuation you dd?

    ReplyDelete
    Replies
    1. Hi Anonymous

      To be honest, I thought the price at this multiple valuations is fair, definitely not on the cheap side.

      I am buying it for its stability of its income at the current 4% yield. I can live with that for now.

      Delete
  7. Hi B,

    For your child portfolio in stock investment, do you open a separate investment account or just using your existing account? I am thinking to invest for my kids but then again, if I invest using my account, it somehow become my own investments.

    I have some funds lately and also spotted CMP to be interesting. I will spend some time going through it before deciding.

    Anyway, our portfolio size is almost similar, I hope to publish it soonest!

    Rolf Suey
    rolfsuey.blogspot.sg

    ReplyDelete
    Replies
    1. Hi Rolf

      Actually I combined my child portfolio with mine though I tend to separate the two sometime later stage. I think its too troublesome to do it at this point in time.

      Cmp is an interesting company and they recently made some acquisition deals which might shape their earnings growth in the future. We will see whether it will pan out some time in the future.

      Hope to see your portfolio some day if you dont mind posting them ;)

      Delete
  8. Hi B,
    I will probably do similar for my kids portfolio.

    For CMP, I am finalizing my research on it. If no other better choices found, I should initiate a buy soon. Thanks for alerting this good stock!

    I did publish my portfolio earlier this month. Refer http://rolfsuey.blogspot.sg/2014/07/portfolio-mid-year-review.html?m=1 . It was without quantity though. I admire the fact that you are so transparent in your portfolio/transactions. I hope to follow suit when time is ripe in the next few months.

    Have a happy Hari Raya for now.

    ReplyDelete

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