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Wednesday, February 10, 2016

"Feb 16" - SG Transactions & Portfolio Update"

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
OCBC
6,000
7.56
45,360.00
13.0%
2.
Ho Bee Land
21,000
1.86
39,060.00
11.0%
3.
China Merchant Pacific
45,000
0.78
35,100.00
10.0%
4.
ST Engineering
12,000
2.69
32,280.00
9.0%
5.
Kingsmen
37,000
0.64
23,680.00
7.0%
6.
Fraser Centerpoint Trust
13,000
1.90
24,700.00
7.0%
7.
IReit Global
32,000
0.67
21,440.00
6.0%
8.
Dairy Farm*
2,200
8.64*
19,003.00
5.0%
9.
City Development
2,000
6.93
13,860.00
4.0%
10.
CapitaCommercial Trust
8,000
1.34
10,720.00
3.0%
11.
Keppel DC Reit
10,000
1.01
10,100.00
3.0%
12.
Nam Lee Metals
35,000
0.28
  9,800.00
3.0%
13.
First Reit
8,000
1.16
  9,280.00
3.0%
14.
MTQ
6,000
0.45
  2,700.00
1.0%
15.
Warchest*
45,000.00
13.0%
Total SGD
342,083.00
 100.00%

Feb continues to be a volatile month as we experience plenty of drama with ups and downs over the past few days (or weeks). Nevertheless, for those who sees this as an opportunity to pick up some bargain stocks at a more attractive price would certainly love the market. I certainly do because time is on my side and I know these investment would pay good dividends for as long as I live.

I've accumulated a bit of my core position in recent times so you can see where the focus I'm putting right now.




I added another 1,000 shares of OCBC since my last update as it continues to trend down and I, on the other hand continue to pick up the bank stock at a bargain. I understand that there are many who are awaiting for the banks to reach the 2008 low, that's totally fine with me. If it ever reaches there, I'll add even more to it but if not, I'll be a happy man anyway. Either way the market goes, I am contented.

I also accumulated 5,000 shares of Ho Bee since my last update. This has quickly become my second biggest holdings after OCBC and I blogged a few times about why I'm confident in this counter. I think there are plenty of catalyst to note from this family owned business and I won't be surprised to see them announcing a strong full year results upcoming.

I also added 1,000 share of ST Engineering since my last update. Whilst this year and next year results will be weak, in particular for contribution from the marine side, I remain confident that this is a strong defensive yield play and they have segments that can uplift the other when they are not doing so well. It won't be a strong rise towards where it used to be but I think this should be a decent hold towards the long run.

I divested all my holdings in Stamford Land as I plan a shift towards the more blue chips since market is down. Stamford Land announces some pretty decent results recently but cashflow is rather poor since they need plenty of cash to redevelop their main gem. Their main play would be next year when the redevelopment plans will be recognized on their books. I will continue to monitor and see for this one.




The portfolio for the month has dropped from the previous month of $345,601 to $342,083 in Feb (-1% month on month; +18% year on year). The drop did not particularly worried as I know these are temporary falls and the more important thing is to look out for any opportunities that I can get in the market. Expected simulated dividends are at $18,254/year, which translates to about $1,521/month. I better buck up and start working on reaching my $2k/month dividends by this year but most would have to depend on how the market would go.

I hold about 14 positions right now which I am vested in.

Some of my fellow friends have lamented on the idea of slow bleeding in today's market. I actually like it a lot. It actually allows me to add a couple of positions every month while waiting for my salary to come in so the longer the market stays this way, the happier I am. All I have to do is stick by my strategy while keeping some warchest on the sideline in case there are further sales.

Thanks for reading.

What about you? Do you like the current slow bleeding or fast capitulation in the market?


23 comments:

  1. Hi B,

    We have no control over market, but we do have control over ourselves n how to design our portfolio.

    So either the way the market goes or whether the rate of bleeding is fast or slow, by right, it should not make any difference! That is if u total control over urself from day 1!

    ReplyDelete
    Replies
    1. Hi Rolf

      There are certainly more panic and fear news coming out of China everyday, possibly a banking and credit crisis in what will be the biggest financial crisis ever.

      I think it is interesting to keep abreast of these news while making sure we don't fall into a fallacy of over-investing or too afraid to go in when that matters. :)

      Bravo what you did on GLP.

      Delete
  2. At this level of Market, is good opportunity to re-balance portfolio to the right mix we want. And a good time to expand our portfolio. Personally I have waited for a long time to do this.

    ReplyDelete
    Replies
    1. Hi Cory

      I'd say that risk reward are pretty balance, and indeed we are sitting at a rather comfortable level for the long run if we can wait.

      The crisis will for surely extend and we might get more bad news happening, which is probably why I'm stil keeping cash on the sideline to see if anything unfolds.

      Delete
  3. Hi B,

    Why the choice of OCBC over DBS or UOB?

    ReplyDelete
    Replies
    1. Hi Anonymous

      It's nothing much in particular basically other than the fact that OCBC is nicely placed in between DBS and UOB for China and Asean exposure, plus their scrip is attractive to me.

      If the banks crisis unfolds, all will not be spared in any way.

      Delete
  4. The Shanghai market is back to the lowest point, there is talks about how the China bank is in 4x for 400% worst than the US in 2008, I sense another sell off in order. And I look at your account, it's barely down, I think you have the secret sauce LOL :)

    Great to see how a conservative investor trade!

    Happy New Year, Bro!

    ReplyDelete
    Replies
    1. Hi Vivianne

      They have been trending down, sadly, but I am also wary of the potential events which could unfold and turn ugly. I think I'll continue to invest in a meaningful way by looking for undervalued shares but also keeping cash on the sideline to ensure I can participate if things get uglier.

      Delete
  5. Hi there

    I see DC REIT in your portfolio. It's going to be winner in the long run. High barriers to entry and massive growth potential in the era of big data.

    The market presents tasty tit bits for all ballsy enough to grab when pessimism is high.

    Mike in Phuket

    ReplyDelete
    Replies
    1. Hi Mike

      Hope you are well in Phuket ;)

      DC Reit is a growing play especially in Asia with the growing demand for spaces and entry to barrier I think this will do fine over the years.

      Delete
  6. I am nibbling at ST Engineering given the weak price recently. I like the slow bleeding market as I do not have much war chest either. Just waiting for the moment where the market goes into the bull run again

    ReplyDelete
    Replies
    1. Hi Sweet Retirement

      High 5.

      This is definitely a good moment to accumulate some strong counters which will benefit when the market turns for the better. We'll never know when, but I'll just keep to the strategy of accumulating.

      Delete
  7. coincidentally, I also bought more ST Eng.

    I think there is still a possibility of it dropping even lower =).

    ReplyDelete
    Replies
    1. Hi Foodie

      Looks like there's a couple of ST Eng fans right here ;)

      Delete
  8. Stocks are just way too cheap now
    I'm all in already

    ReplyDelete
    Replies
    1. Hi Felix

      Stocks are indeed very attractively priced, I've been adding quite a bit too.

      Delete
  9. prefer a faster captitulation because i have low patience, but judging from the comments above, still some way to go.

    ReplyDelete
    Replies
    1. Hi SMK

      You must have lots of cash in hand!!!

      I prefer for the bear to go slow, that way I can build up capital to put into the market slowly :)

      Delete
  10. I bought more Ho Bee today @ 1.83, now my largest holding in SGX portfolio ...

    ReplyDelete
    Replies
    1. Hi Boonchin

      Interesting!!!

      I am interested to hear on your thesis on why you are buying up more on Ho bee ;)

      Delete
    2. Hi B,

      I like Ho Bee's management for not "sit back and relax" during the sluggish property market, but rather being proactively hunt for quality assets for rental income while waiting for market recovery. Also, am expecting revenue recognition from its property development in Australia and China, hopefully very soon.

      Delete
  11. Hi B,

    I have been following your blog for more than a year but am commenting for the first time. Our portfolios are quite similar except that I am more into SREITs. I admire the timing of your divestment of your SCI shares, unfortunately I am still stuck with mine.
    I was just wondering why you are not buying more CMP shares (your top holding previously) when the price is at bargain basement now? Are there more concerns other than the slowdown in the Chinese economy which I think should not affect the toll revenue too much.

    Rgds,
    Daniel

    ReplyDelete
  12. Hi B,

    I have added some OCBC recently too. Happy CNY! :)

    ReplyDelete

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