expr:class='"loading" + data:blog.mobileClass'>

Saturday, January 16, 2016

"Jan 16" - SG Transactions & Portfolio Update"


No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
OCBC
5,000
7.95
39,750.00
12.0%
2.
China Merchant Pacific
45,000
0.80
36,000.00
10.0%
3.
ST Engineering
11,000
2.88
31,680.00
9.0%
4.
Ho Bee Land
16,000
1.95
31,200.00
9.0%
5.
Kingsmen
37,000
0.65
24,050.00
7.0%
6.
Fraser Centerpoint Trust
13,000
1.89
24,570.00
7.0%
7.
IReit Global
32,000
0.66
21,120.00
6.0%
8.
Dairy Farm*
2,200
8.60*
18,911.00
5.0%
9.
City Development
2,000
7.29
14,580.00
4.0%
10.
Stamford Land
30,000
0.49
14,700.00
4.0%
11.
Nam Lee Metals
35,000
0.31
10,850.00
3.0%
12.
CapitaCommercial Trust
8,000
1.31
10,480.00
3.0%
13.
Keppel DC Reit
10,000
1.02
10,200.00
3.0%
14.
First Reit
8,000
1.17
  9,360.00
3.0%
15.
MTQ
7,000
0.45
  3,150.00
1.0%
16.
Warchest*
45,000.00
13.0%
Total SGD
345,601.00
 100.00%

It's been quite an adventure ride to start the year.
 
The index has declined about 8% since the start of the year and my portfolio has taken a hit as well. Though, as a long term investor, I'd see this as an opportunity rather than worries so I'll just have to brace myself with this, having mentally prepared for a number of years now.
 
 
 
 
 
I've divested Vicom this month at a price ranging from $5.97 to $6.02. My conviction with Vicom has always been pretty clear - strong balance sheet, excellent earnings and good predictability of cashflow - a clear case of winner. My only concern with them is their rather expensive valuation given the growth concern for both their vehicle and non-vehicle segment. Given that there are other opportunities in the market, I've decided to rebalance the portfolio and take on a risk on approach which I believe will give me better returns in the future.
 
I've also divested Silverlake this month at a price of $0.63. I read quite a bit on the Deloitte report and what they feel about the findings and I came to realize that I had actually lesser understanding on the company than what I thought I would know. Given this situation, I have divested on the company and decide to move on. I think I made a small loss here given I was entitled to the free bonus shares previously.
 
I added Ho Bee Land this month which I have blogged here. This is now my 4th largest holdings in the portfolio so I have a very strong conviction about this buy.
 
I also added more ST Engineering at a price of $2.86. I continue to think that there are opportunities for the company even as their balance sheet has weakened and their earnings are threatened. Current valuations are not expensive based on their historical so I'll have to wait on their next quarter development to see if their earnings will be badly impacted.
 
Last but not least, I've added OCBC further at a price of $8.48. Banks are a straightforward play for the long term and the main concern right now on everyone's mind is on their NPL. I continue to think that their NPL has been stressed test to limit the losses on each sector but we'll have to see if the O&G and China downfall will have great impact on the banks' earnings. Still, I think banks are a good long term play on recovery.




The overall portfolio has gone down about $15k from previous month of $360,600 to $345,601 this month (-4.2% month on month; +22.3% year on year), mimicking the losses on the STI (albeit with a lesser losses).
 
At this stage, I don't think there are any unduly worries as I continue to look for open opportunity in the market. Personal cashflow remains strong and I am eagerly awaiting for next month to come because I would have quite a bit of dividends coming in so the more the market goes down, the more money I am probably going to pump in.
 
Last but not least, I have one advice for this. In any bull or bear case, there are abound to be many naysayers and "gurus" who are trying to predict where the market will bottom. Unless you are a trader, I'd advise that you ignore these "noises" because they are as clueless as any experts out there in the CNBC or Bloomberg news. As investors, I'd rather spend time analysing the prospect of companies instead of relying on these people. These people love when their ego is being stroked but they usually perform poorly themselves.
 
Thanks for reading. Have a great weekend :)

14 comments:

  1. I like your last paragraph...thanks for the reminder

    ReplyDelete
  2. Very well said in the end
    Respect!

    ReplyDelete
  3. Like your last paragraph. Why should we listen to them if they can't even outperform the market?

    ReplyDelete
    Replies
    1. Hi Dividend Hermit

      I guess sticking to one's conviction and strategy still fits the best.

      Delete
  4. Can you share why not UOB or DBS?

    ReplyDelete
    Replies
    1. Hi SGdividends

      OCBC, to me, stands in between the middle of exposure between China and other SEA. DBS has more China exposure while UOB has more SEA exposure. Other than that, I guess their Capital ratio requirements are similar in nature, so a lot depends on their strategy profile and NPL that follows with it.

      Delete
  5. Since when do you have City Development. Can't recall you mentioned it or added it to your Recent Transaction?

    ReplyDelete
    Replies
    1. Hi Anonymous

      I added them in Nov at $7.50 but didn't have time to write an article for it.

      Delete
  6. If the stock is going down another 25-50%, I don't mind working full time for another 3-5 years. That'd double my passive income. So instead of retiring frugally and travel internationally once a year, I could go twice a year. :P

    Imagine buying stocks at 50% discount, regardless whether they bounce back or not, the Dividend Aristocrats which rather cutting employees rather than cutting dividends, then I'd stand to make 100% more dividend per dollar! Do that for 3-5 years! LOL :)

    Don't fear the recession, fear that you don't have the capital to buy at the lows. LOL :)

    ReplyDelete
    Replies
    1. my sentiments exactly.. my only fear is that i dont have enough ammo left to fight the bear war...
      everything looks like the Great Sgp Sale, i have to be super disciplined to buy. sadly, i cant buy everything thats on sale!

      Delete
    2. Hi Vivianne / Fooztreasures

      I think given the GFC as a benchmark, a lot of people are now cautious and optimistic into the buying, which is great because we finally have a sale we are all longing upon.

      As long as our horizon is long or maybe infinity to some, I think the more important question is if the risk is permanent impairment or just a blip ;)

      Delete
  7. Bro,
    The stock pull back did nothing to your portfolio, your portfolio is super ... blue chip or you buys tons at the dips or holding them for a long time. I take that your portfolio hits all of the above specifications.

    What is your cash percentage are you holding on right now?

    ReplyDelete

UA-57154194-1