Friday, March 11, 2016

"Mar 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
8.80
52,800.00
14.0%
2.
Ho Bee Land
22,000
2.00
44,000.00
12.0%
3.
China Merchant Pacific
45,000
0.81
36,450.00
10.0%
4.
ST Engineering
12,000
3.11
37,320.00
10.0%
5.
Kingsmen
57,000
0.63
35,910.00
10.0%
6.
Fraser Centerpoint Trust
13,000
1.99
25,870.00
7.0%
7.
IReit Global
32,000
0.69
22,080.00
6.0%
8.
City Development
2,000
7.49
14,980.00
4.0%
9.
CapitaCommercial Trust
8,000
1.44
11,520.00
3.0%
10.
Keppel DC Reit
10,000
1.06
10,600.00
3.0%
11.
Nam Lee Metals
35,000
0.28
10,150.00
3.0%
12.
First Reit
8,000
1.22
  9,760.00
3.0%
13.
Neratel
13,000
0.55
  7,150.00
2.0%
14.
MTQ
6,000
0.55
  3,300.00
1.0%
15.
Warchest*
50,000.00
13.0%
Total SGD
371,890.00
 100.00%

The market has recently rebounded for the last 2 weeks to everyone surprise and suddenly you can see some bullish sentiments back in the air. While there are many people who thinks that this is a short term rebound in a bearish downtrend, there are the other group who believes that the bottom should be over. I don't really know who is the right one at the moment.

What I did from the last update is to continue my accumulation of shares which I think represents good long term play. Most of the accumulation are not new stocks so I didn't really have anything to update to the original thesis.




I continue to accumulate Ho Bee by purchasing another 1,000 share. This is a counter which I think represents deep value amongst the many other developers around and the recent couple of accumulation has made this my top 2 holdings at the moment. If you are new to my blog and are curious why I have kept on adding to this company, you may refer to some of my past article and thesis on Ho Bee.

I also used the chance to accumulate Kingsmen by purchasing another 20,000 shares since the recent share price weakness after they announce their full year results recently. My original thesis since I last blogged them last year still remains valid even though it is pretty obvious from the recent results that the landscape of their approach towards the luxury segment may have to change given the slowdown in demand worldwide. Nevertheless, I should be seeing some overhead reduction in the following year and I would be monitoring closely their OVH/GPM more closely.

This month, I have also added Neratel by purchasing 13,000 shares at a price of $0.55 which I have blogged here. I am still watching their development closely and may accumulate further to my position if there are opportunities to do so.

Last but not least, I have also divested my position in Dairy Farm before they announced their full year results, which I am planning to analyse closely. The intention is to add this back to the portfolio once I have clarified some items from their full year results which I am still taking time to analyse. With the sale, I have kept the proceeds at the moment as part of the warchest.




The recent rally has benefited the portfolio quite a bit and it has pushed the portfolio up from the previous month of $342,083 to $371,890 in Mar (+9% month on month; +27% year on year). This is currently the highest record I've ever achieved in my portfolio and I am relieved that the strategy is working well so far. Having said that, I'm not foolish enough to believe that the unrealised profits is permanent as market movement means that it can push it down the next day.

The current warchest available is at 13%, though I am expecting a very strong cash inflow in the month of April and May which would bump up the warchest in time hopefully for more opportunities.

Thanks for reading.

How are your portfolio doing in the recent rally?


13 comments:

  1. Hi B, any opinions on CMP results? would the 7c dividend be sustainable going forward?

    ReplyDelete
    Replies
    1. Hi Anonymous

      My fellow blogger, Kyith from Investment Moats have written a brilliant piece on his blog regarding CMPH. The link is here:

      http://www.investmentmoats.com/money-management/dividend-investing/china-merchant-pacific-2015-full-year-result/

      My personal take is the 7 cents dividend would be sustained in the short term but over the long term a lot would have to depend on the improved performance of their tolls. That one is still a question mark at this point.

      Delete
  2. Hi B, which is the best dividend paying stock in your portfolio?

    ReplyDelete
    Replies
    1. Hi Sweet Retirement

      I think it would have to be Ireit and CMPH, both of which are yielding around 9+% at the moment.

      Delete
  3. Hi there,

    Great portfolio you have.

    I've been reading up on Ho Bee. This is an entirely new counter to me. While I'm a litle uncertain about Brexit and the general property development market, I like it's strategy of swapping to rental in the interim.

    Bought a small amount at 2.01. Any thoughts on what's fair value and at which level you'll stop accumulating?

    ReplyDelete
    Replies
    1. Hi Anonymous

      At the moment I'd stop accumulating on Ho Bee since I've accumulated a fair amount of the company shares below $1.90. I still think they are easily worth above $2.50 in the future, and their RNAV are obviously higher than that but the market will determine if they are fairly priced by then. As for now, the market has certainly discounted a lot of negative news on it.

      Delete
    2. Thanks for the insight. Ho Bee's been on the uptrend recently. Will probably accumulate more before it hits >2.10.

      Delete
  4. Hi B,
    Neratel website has been down for quite along time, I guess down at least half a year, not sure what is happening.
    As a listed company company, they shouldn't allow this to happen for such a long time without taking any action.

    ReplyDelete
    Replies
    1. Hi Anonymous

      Yeah, I also saw that. It's quite ridiculous to be honest, says a lot about how they treat disclosures to investors.

      Delete
  5. Hi B, I read your post on Kingsmen Creative. Any reasons for buying this counter although revenue disappoints? Their revenue is very dependent on the services such as exhibitions, luxury shops deco etc

    ReplyDelete
    Replies
    1. Hi Sweet Retirement

      The revenue disappoints mainly on the luxury segment, which I think is due to slowdown rather than structural issues so I am expecting demand to be back up when economy recovers.

      Kingsmen has a very good reputable brand they have build over the years and this can be seen from their high customer retention rate. In short, these customers would prefer to use Kingsmen if demand allows.

      They will also have some savings in their rental cost in the next year ahead, so this will give their bottomline a relief for a bit in the midst of today's economy.

      Delete
    2. Hi B, FY2015 total dividends is 3 cents (interim 1 cent + final 2 cents)?

      Delete
    3. Hi Sweet Retirement

      Yep that's right :)

      Delete

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