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Friday, August 21, 2015

"Aug 15" - SG Transactions & Portfolio Update"

 No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
Vicom
8,000
5.90
47,200.00
15.0%
2.
China Merchant Pacific
45,000
0.96
43,200.00
14.0%
3.
Kingsmen
36,000
0.81
29,160.00
9.0%
4.
Accordia Golf Trust
22,000
0.63
13,860.00
4.0%
5.
CapitaCommercial Trust
8,000
1.30
10,400.00
3.0%
6.
Nam Lee Metals
35,000
0.28
  9,800.00
3.0%
7.
Silverlake Axis
14,400
0.64
  9,216.00
3.0%
8.
ST Engineering
3,000
2.92
  8,760.00
3.0%
9.
Noel Gifts
18,900
0.31
  5,860.00
2.0%
10.
Stamford Land
10,000
0.49
  4,900.00
2.0%
11.
MTQ
7,000
0.52
  3,640.00
1.0%
12.
HoBee Land
1,000
1.96
  1,960.00
1.0%
13.
Far East Hospitality Trust
3,000
0.60
  1,800.00
1.0%
14.
Warchest*
115,000.00
38.0%

Total SGD


304,755.00
 100.00%





What a month it has been for August.

It has barely been a month and it has created a lot more chaos than what we were expecting.

To be honest, things were not much different from what we've seen last month. We always knew that China would have a soft landing and the US is going to hike up the interest sooner or later. It appears that there are some sorts of panic selling amongst the local retail investors scene as I've witnessed many who sells their existing portfolio to raise cash in order to buy back later at a lower price. 

For me, I have been involved in a various of activities this month, much to my delight that I have finally the opportunity to add. I know there will always be people who thinks the market will go lower. If so, great. All the more I am going to get aggressive and buying more. If not, I'll stick to my plan that I had originally planned. This will work out to what I believe to be excellent in the long run. 

For the month of August, I've managed to pare down my stake in China Merchant Pacific (See Here), Nam Lee Metals, and divested King Wan. You can refer to the Recent Transactions for further information regarding the divestment.

I have also been busy allocating capital this month to what I think represents an excellent opportunity, especially for investors who are looking for investing for income. I've added Kingsmen, Accordia, CapitaCommercial Trust, Far East Hospitality Trust and Ho Bee Land. I have not had a chance to write about my thoughts on these companies, and I will do so over the next few postings, but these are companies which has been in my target list for a very long time. When the price represents a decent entry, I will position my sizing to go in batches. It is not in my strategy to catch the bottom of the price, as one can only predict upon hindsight. There's also a few emails asking my opinion on the recent Silverlake allegations. I will have to read the report over the weekends to analyze their stands as it is a long report. Looks like it's going to be a busy weekend now.

The warchest amount is currently at 38% of the overall portfolio in what I believed to be in a decent position to be utilized when the opportunity arises. The dividend income received this month also helps to increase the amount of warchest, which is the reason why I love dividend investing a lot. It provides cashflow repeatedly in a predictably manner and helps to buffer for any capital gain loss while waiting for it to recover.



The equity networth has gone down from the previous month high to the current month at $304,755. I think this is not surprising given how everyone experienced quite a bit of bloodbath in the market recently.Although the amount of networth has shrinked this month, I have added more units of shares that gives out more in terms of dividend income. The cashflow is all we need in order to go through our daily lives.

The projected target is to reach the end year networth of $333,105 (Link Here). It is still somewhat a distance for now, but we'll never know what will happen to the market. With the last quarter of the year representing a strong month to finish off the dividend income, I might just be able to reach there if the market does not head south further.

In the meantime, enjoy the ride to the volatile market and perhaps we might see the bear pops out in a while more.

What about you? How has your portfolio been for August?







19 comments:

  1. Why do you divest part of Nam Lee? It is not high percentage of your portfolio. Has the fundamentals change?

    ReplyDelete
    Replies
    1. Hi Anonymous

      I decided to divest half of Nam Lee as I am trying to allocate the capital to something which presents greater value to me right now given the market sentiments. Nothing to do with fundamentals at the moment.

      Delete
  2. Seems like u made a lot of trades this year
    Becareful of the commission cost piling up

    Good that u now a lot of cash, stocks getting
    Cheaper and cheaper, good opportunity now hehe

    ReplyDelete
    Replies
    1. Hi Felix

      Thanks for the kind reminder.

      Indeed, some stocks are representing better value out there. I will be in the hunt for more good stocks to come.

      Delete
  3. Hi B,

    I have been buying over the past 2 days. I think I might have gotten a bit early. Cash has dwindle from 50% to less than 30% now of intial port. The same goes with my wife port which I manage, in fact she is asking if I am
    Asking her to buy too much. Lol. Strange she keep asking me anything to buy when market is going up and when there is a sale like ftoday, she scare...

    Given US fall on Friday. Think my cash is going further down

    Let's hope
    It's just a mild bear. Lol

    ReplyDelete
    Replies
    1. Hi SI

      I am interested in the counters you are buying!!! Share share if you don't mind.

      I think we've got to allocate cash a little more careful now, not because we are afraid of losses, but because there might be those once in a lifetime opportunities which we can take advantage of should it comes. Cash is definitely the play out there right now and it can be valued much more perhaps.

      Delete
    2. Hi B,

      Actually it's mainly buying those already on radar. Nothing new.

      Bought ST engineering, CMPH, Sing Shipping and Maple Industrial Trust.

      Bidded for LMIR but no luck. Next week I am looking at it, with Venture, and accordia trust. I might add more STE or singapore shipping too.

      Cheers!

      Delete
  4. Hi B,

    I am curious why did you buy FEHT? From what I understand, the management hasn't been doing prudent debt management thus resulting in declining DPU. With the slate of new hotel rooms coming up soon, it will take a strain on the revPAR of FEHT isn't it? Is it this counter worth it? Would you share your thoughts on buying this?

    ReplyDelete
    Replies
    1. Hi Jalan Jalan

      I was contemplating whether to blog about my recent purchases but I am still thinking. There are so many things to do with so little time.

      My reason for buying FEHT is due to its depressed valuation at current. Given that its properties are all concentrated in Singapore, to be able to yield north of 8% (probably now) is incredible because you don't get that many Singapore properties which can yield those sort of amount.

      The nearest competitors are AHT and CDLHT, both of which are not doing well either. Given the latter two have overseas exposure, I'd stick to FEHT for now, but may add the latter if they represent better value.

      In simple terms, too many good things now, need to be more selective :)

      Delete
  5. Hi B,

    Sorry for the multiple posts. I have some more questions: I have noticed that Kingsmen has dropped to a price which is about 10% off your average price. It has been having consistent performance, up until this Q2. How will you approach this counter? Will you be averaging down? Although it's dishing out dividends, the capital depreciation you have suffered would have been more than the dividends that you have collected.

    If my memory serves my well, I recall you mentioning that you would enter into a position in STE if it ever reaches 2.9x. Since this the price now, will you be averaging down?

    Thanks for your inputs! :)

    ReplyDelete
    Replies
    1. Hi Jalan Jalan

      I have recently averaged down on Kingsmen and are now vested with 36,000 shares. I think I might want to wait a little bit on it before averaging down further. After all, I don't want it to be too concentrated if I keep on averaging down.

      STE is in my radar, though because everything else becomes cheaper, the buy becomes more selective. I'd definitely be looking to add STE in my portfolio at any price right now or below. In fact, I might just add them next week.

      Delete
  6. Hi B,

    Will you be able to share what's your take on Silverlake axis recent allegations? Currently vested in this counter at a price of 0.95 cents, at current price now will you be adding more? A drop of 20% is painful though, does this price represent a value buy for this company Or should I cut off my losses ? Looking forward to see your reply soon!

    ReplyDelete
    Replies
    1. Hi WL

      I made a recent post on my thoughts about the case.

      Delete
    2. Hi WL

      I made a recent post on my thoughts about the case.

      Delete
  7. Hi B,

    I always like your transparency in your blog. You are one of the most transparent. Perhaps one type of people who does that is one with high integrity and nothing to hide. Kudos.

    My disposable warchest is in range similar to you.

    I am just curious how are you going to deploy? Meaning >10k per trade, which means a total of 10 trades, your warchest will be depleted. And if the true bear comes say in 2016 then, you will run out of warchest?

    Also I am skeptical about Vicom future growth, due to the non-vehicle testing sector not growing and more vehicles de-registration impending. Wat is your take on this? Why still hold? Income or because your entry price is low, so it does not matters?

    ReplyDelete
    Replies
    1. Hi Rolf

      Aiyo, you are too kind la. But you will be kinder if you sell me vicom and i pick up lower :) juz kidding.

      My strategy is actually to divide them into a one time $5k trade for most of the time STI is undergoing major down on a single particular day. That way i can make at least 24 bullets there, not to forget the dividends and salary that is coming in over time, it will increase the bullets as we move along.

      No point haggling and.nibbling too little either. I suspect i will.most likely cash in when the market is somewhere at 2500. Its okay if it goes down further. I already knew i was going to get a very good deal when things bounce up later on in the stage.

      Delete
  8. sorry Vicom sold... 5.96.. u never pickup?

    ReplyDelete
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