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Sunday, May 22, 2016

"May 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
8.45
50,700.00
13.0%
2.
Kingsmen
80,000
0.63
50,400.00
13.0%
3.
Ho Bee Land
22,000
2.19
48,180.00
12.0%
4.
China Merchant Pacific
45,000
1.01
45,450.00
12.0%
5.
IReit Global
62,000
0.72
44,640.00
11.0%
6.
ST Engineering
13,000
3.16
41,080.00
10.0%
7.
Fraser Centerpoint Trust
18,000
1.98
35,640.00
9.0%
8.
CapitaCommercial Trust
15,000
1.38
20,700.00
5.0%
9.
HK Land*
1,500
8.33*
12,495.00
3.0%
10.
Ascott Reit
10,000
1.12
11,200.00
3.0%
11.
Keppel DC Reit
10,000
1.08
10,800.00
3.0%
12.
Nam Lee Metals
35,000
0.33
11,550.00
3.0%
13.
First Reit
8,000
1.25
10,000.00
2.0%
14.
Warchest*
28,000.00
7.0%
Total SGD
420,834.00
 100.00%

The month of May has given something for all of us to think about, especially with the "Sell in May and Go Away" everyone was advocating, we've seen part of that coming true on hindsight.

There has been a lot of activities within the portfolio which I will summarize below from the last update in April:




I divested my position in CDL at S$8.66 after the share price run up quite a bit in recent months. Developers was always going to be a short term trading position for me as and when opportunities arise because they don't offer high enough yield for me to hold on to my position, even if they are still undervalued in my opinion. This has allowed me to book in 15.5% gain within a span of 4 months.

Shortly after, I used the proceeds to enter into a position for Ireit Global at a price of $0.70. I also blogged my thoughts here. Ireit Global will continue to become my long term play as I believe this will become something big in a few years to come. The hope is this becomes the new First Reit and it certainly has an opportunity to grow steadily over the years. It also yields a very enticing yield of 8.7%.

I also accumulated more FCT at a price of $1.955 after the share price shows some weakness recently. Like Ireit, FCT remains a core position in my portfolio for the long term as the catalyst are well in place. I have blogged my thoughts in more detail here.

I divested my position in MTQ at a price of $0.52 just before the company announces their full year results. As predicted, they reported a full year loss and had not announced any dividend payment for FY15 after a poor set of results. This represents a loss of about 18% on my original entry but luckily the position is small.

I also divested my position in Neratel at a price of $0.65. As previously mentioned in my analysis here, this was going to be a trading position and I have no intention to hold this long term in my portfolio. This was after the company had initially announced the potential sale of their payment solutions which pushed the share price upwards. This represents a gain of 20% (including the 1 cent dividend received) within a short span of 2 months, which I think is great, though the share price is obviously a lot higher now.

Last but not least, I accumulated more CCT at a price of $1.38 after the share price weakens further upon a down market. I blogged my thoughts here.



I'm pleasantly pleased that the market value of the portfolio continued to outperform the market and this month I had an increase from the previous month of $400,314 to $420,834 in May (+5.1% month on month; +38.3% year on year). The most part of the increase this month is due to the GO from CMP which helped to push up the portfolio massively this month. As of now, I'm still waiting for the offer letter which I will accept when it comes. This should take another 2 to 3 months to complete.

Cashflow has been fantastic this month due to the incoming dividends received in the 2nd half of the month. On the personal front, I've also planned for not one but two trips coming in the month of Jul (Krabi and BKK) and Oct (Cruise to Phuket) so half of the trips expenses have already been incurred while another half will come in later.

With the hike rate in Jun almost looks like a certainty now, I'll be looking to exploit the opportunities around if they come but the strategy will not differ from what I've always been following.

Thanks for reading.

How does your portfolio fare in the month of May?



17 comments:

  1. I sold off my stake in Neratel as well and waiting for offer letter foe CMP too.

    ReplyDelete
    Replies
    1. Hi Betta man

      It seems like we are on the same boat waiting :)

      Delete
  2. Hi B, I wonder if share price will go up or down for neratel

    ReplyDelete
    Replies
    1. Hi SR

      I think the market is somewhat pricing in the news already after they announced last Friday.

      Delete
  3. Hi B,

    I'm still holding on to Nera, knowing the potential spin-off in core business segment of credit repair payment solutions, waiting to unlock the best value - still have some faith in management.

    Let's hope everything works out well..

    ReplyDelete
    Replies
    1. Hi M SI

      Yeah, this is tricky to be honest.

      If they do it well, they can increase shareholder's value by a lot since they do not have the solutions to drag on their performance. It's up to the management abilities I agree.

      Delete
  4. B,

    other than holding the physical USD, how are you actually going to exploit the Fed hike?
    borrowing will be coming more ex for most companies.. hence higher cost..

    and yes, since the above readers have asked regarding neratel. curious to know your thoughts too. but personally, i think its not really a good thing. may pare

    ReplyDelete
    Replies
    1. Hi FC

      I don't have any particular strategy to combat the hike in Jun to be honest. I will just watch for my cash balance and then add to the position when it is a good time to do so.

      My first thought on Nera is it will affect them in the business quite a bit since it makes up around 1/4 of their business. But having said that, if they sell it right, then what they are doing is increasing shareholder's value. This is of course for the investors who believe in them long term. If it is just for trading position, I'd say take the profit immediately and focus elsewhere.

      Delete
    2. thanks B,

      forgot to mention that once again, your portfolio looks solid.very good selection. wish i could be half as good as you!

      generally, the sentiments from most have been negative. but the market seems otherwise. ever since the announcement, it has been going up. hard to say if these are just people trying to make a quick buck due to the rumoured special divd.

      Delete
    3. Thanks FC for your kind words. Still has much to learn from everyone around.

      Let's just wait for the market....seems a bit listless these days, but I won't want to rush at this level yet since I've accumulated quite a bit at this level.

      Delete
  5. Hi B,

    Hope u can find another gem to reinvest the funds from CMP's GO. ^^

    ReplyDelete
    Replies
    1. Hi DK

      I hope so too, not easy looking for new gems these days, so I'd most probably just add to existing position like Ireit and FCT.

      Delete
  6. Hi B,

    Do you include capital injections in your YoY portfolio performance?

    ReplyDelete
    Replies
    1. Hi Joel

      Yes I do include capital injection. I calculated my XIRR return once at year end :)

      Delete
  7. how u see CMP?? going to delist right?

    ReplyDelete
  8. I am surprised that CMP touched $1.025 on 31 May 16. How it can go above the GO of $1.02 is beyond me.

    B, any thoughts ?

    ReplyDelete
    Replies
    1. Hi Betta Man

      Yeah, I think there are a few bunch of investors who felt that the offer price isn't warranted but based on half a bid it doesn't sound convincing enough. Also, the sell volume is small so it suggests that only a small minority are probably rejecting the offer price.

      I still think it will go through so that will be the end of the road for us for now and have to focus elsewhere.

      Delete

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