Friday, August 22, 2014

"Aug 14" - SG Transactions & Portfolio Update"

 No.
 Counters
No. of Lots
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
FraserCenter Point Trust
30
1.955
58,650.00
21.0%
2.
Vicom
6
6.60
39,600.00
14.0%
3.
SembCorp Ind
7
5.07
35,490.00
13.0%
4.
SPH
5
4.16
20,800.00
7.0%
5.
Ascott Reit
15
1.23
18,450.00
7.0%
6.
Mapletree Greater China Commercial Trust
20
0.92
18,400.00
7.0%
7.
China Merchant Pacific
19
0.945
17,955.00
6.0%
8.
FraserCommercial Trust
11
1.40
15,400.00
6.0%
9.
Neratel
20
0.79
15,800.00
6.0%
10.
ST Engineering
4
3.65
14,600.00
5.0%
11.
First Reit
10
1.235
12,350.00
4.0%
12.
Ascendas Hosp. Trust
7
0.74
  5,180.00
2.0%
13.
Second Chance
7
0.46
  3,220.00
1.0%
14.
Stamford Land
3
0.60
  1,800.00
1.0%

Total SGD


277,695.00
 100.00%

It almost seems like infinity since I last updated the previous month portfolio update (Jul 14 Portfolio Update) as I've started my new role in the new company and it was a tough first month to endure to be honest. Henceforth, the income that was invested for this month investment was memorable and reminded me once again how not easy it is that money came along. There are definitely much tougher jobs out there so I should really look on the brighter side. The rat finally gets his meal.

For this month, I have added 2 lots of Sembcorp Industries on recent price weakness heading southwards at $5.08. To me, the fundamentals of the company is still as solid as ever and the recent price weakness seems to be an entry opportunity. The utilities segment might have seen some tough growth in the Singapore sector but their overseas sector should be contributing and outpacing the local sector soon enough. The marines segment are doing fine in line with previous year so it is something that I am personally satisfied of. The urbanization is something that will be a dark horse for the next future years to come as this segment is becoming increasingly strong and optimistic.

The recent 5 cents interim dividend from Sembcorp seems to be a little surprising, considering that they don't usually gives this out at this stage. I think the reason why they do this is perhaps they've been repurchasing lesser share buyback at this stage as compared to the previous year. Based on the graphs below, it appears that year on year (annualized for FY2014) they have approximately the same amount of profits and CAPEX and it is only because of the lesser repurchase done this year that they have included the interim.



Based on the recent price weakness, it appears that the earnings multiple has become somewhat attractive to me at just around 10.14x. If you check out the earnings multiple based on the past 52 weeks, it seems to have hit the lowest at this stage. So I'll take that for now.


I have also decided to trim half of my investment in Second Chance this month as there are lesser directions on what the company is intending to do for the next 12 months or so. The latest news coming out from them was instead of selling all their properties units they decided to trim a third of those. I'm not sure if there are any near term catalyst for this stock to be honest as price seems to move almost sideways peak at $0.46. I'll have to hold the rest of the few lots and see where they go from here.

The portfolio now stands at 14 stocks and I may be looking to trim off one or two more which I have identified as potential weaknesses.

There are no changes to my Child Portfolio for this month as lao bei didn't receive any angbao money for him since. Well, I'm sure he is fine with it :D

There are a couple of stocks that I'm keeping a close look on e.g SIAEng STEng so maybe there will be a chance to add them for next month.

Until then, please stay safe and vigilant and look out for potential noise that might present good opportunities ;)


10 comments:

  1. Hi B,

    Can I know where you gotten the P/E chart from? Seems like a good tool to use. Thanks in advance. :)

    ReplyDelete
    Replies
    1. Hi Nightmare Angel

      I got the chart from using capitaliq.

      Its a good source with a lot of good information but have to subscribe to it.

      Delete
  2. Hi B, I added more of CMP this week. Is there any particular reason why you are holding on to SPH?

    ReplyDelete
    Replies
    1. Hi Rolf

      CmP was in my original radar but sembcorp just keeps going south which makes me tempted to accumulate. I think both are good additions at this point in time.

      I am keeping sph mainly because I wanted to see how the seletar mall can contibute to their earnings. Dividends should still be maintained so its still yielding fine for me.

      Delete
  3. i also looking at STeng what is your target price??

    ReplyDelete
    Replies
    1. Hi lzr84

      They should be at historical average valuations right now at 20x earnings. I am fine with that though some would like to see it much lower than current.

      I would be fine adding them at around 3.65 since I added them not too long ago at 3.77

      Delete
  4. Hi B,

    SIAEC is at 52weeks low, consider adding back to your portfolio? :)

    ReplyDelete
    Replies
    1. Hi boonchin

      I hv a friend who has a sizeable stake in siaeng and he mentioned that the fundamentals look to be still good. The mro margins look to be falling but I think the key would be the profits from the share jv associates.

      From a technical point of view it looks to be on a downtrend so just maybe I will pick it up if it goes down further.

      Delete

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