Saturday, August 6, 2016

"Aug 16" - SG Transactions & Portfolio Update"‏

No.
 Counters
No. of Shares
Market Price (SGD)
Total Value (SGD) based on market price
Allocation %
1.
IReit Global
73,000
0.75
54,750.00
12.0%
2.
ST Engineering
13,000
3.34
43,420.00
10.0%
3.
Kingsmen
45,000
0.65
29,250.00
7.0%
4.
HK Land*
2,500
8.55*
21,386.00
5.0%
5.
Ascott Reit
10,000
1.13
11,300.00
4.0%
6.
First Reit
8,000
1.31
10,480.00
2.0%
7.
OCBC
1,134
8.31
  9,423.00
2.0%
8.
Warchest*
260,000.00
60.0%
Total SGD
440,009.00
100.00%


It has been a good start to the month as I just returned from my holiday trip recently and felt all refreshed. We spent quite a bit on the accommodation and everything else and it has taken our expenses a bit on the toll this month but it was a well worth trip.

The market has been holding up strongly in the 2,830 points as the bull is continuing to fight the bears. For me, I'd try to position myself in both ways such that I will continue to benefit from either movements.

There are a couple of activities which I have made since the last portfolio update. For the detail, you may refer to the page: "Recent Transactions"


What a Beautiful month!!

First, I’ve made a full divestment of Advancer Global Limited on the first day of the trading when the share price hits an unexpected high of 44 cents. This translates to a 100% gain from the IPO costs which I got for 22 cents. I thought the share price was very richly valued considering the risk vs reward at the time and I gladly locked in profits thereafter. 

Second, I’ve also made a full divestment of UOL at a share price of $5.94. This was purchased recently in Jun which I have blogged here. The share price have since ran up and I locked in the gains at a 10% profit as well. The catalysts will not be realized until late 2017/2018 and opportunities might knock in the door sometime later. In any case, my strategy is always to be on the prudent side and to lock in the profits first.

Third, I’ve also made a full divestment to Capitaland Commercial Trust (CCT) at a share price of $1.53. This represents a 15% gains (19% gains - inclusive of dividends) from last I bought in Aug last year and May earlier this year. I will be entitled to the upcoming dividend payout of 4.13 cents since this was sold after it goes ex-dividend. At current price, my take is that the trust is richly valued in terms valuation and yield has been compressed to 5.5%.

Fourth, I’ve also made partial divestment to Kingsmen at a share price of $0.655. This was done prior to the results they will be announcing on the 10th August. My average price is at $0.75, so this divestment translates to a 12% loss (9% loss - inclusive of dividends). This is a company which I’m still relatively divided because on one hand the near term outlook is expected to be weak, guided by the lower contracts won this year and the falling gross, net margin and return on equity over the past few quarters but these may have already (or not) been priced in the share price. The luxury segment of the retail shift will also take time to evolve as they will need to adjust to the requirements of the industry. Overall, I think it'll take a while before the company would recover.

On the purchase side, I’ve accumulated more HK Land at a share price of US$6.15 which I’ve blogged here. Even though they may look undervalued in terms of their net asset value, which mostly comprises of their investment properties, there are certain risks such as negative rental reversion and China risk which might directly impacted the business.

This month, I have also taken the opportunity to accumulate Ireit Global at a share price of $0.745 ahead of its earnings results on the 10th August. My decision to purchase this company is based on its strong Germany leasing profile activities and long wale as well as its high dividend yield, even though they may be impacted more by the weakening of the EUR further. This decision is also based on my assumption that the ECB will launch a much longer QE, which I took reference on the performance of the US reits when the Fed was doing the same from 2009 to 2014. I think this will be my dark horse in time to come.




The portfolio has increased from the previous month of $433,256 to $440,009 this month (+1.5% month on month; +41.8% year on year). 

The XIRR YTD on the equity has increased this month by standing at 17.4% on an annualized basis. The benchmark for STI has returned -1.7% this year to date. I'm finger cross hoping that the strategy can continue to yield me a favorable outcome.

In terms of dividends, there will be some dividends this month / next month which will be a much needed boost in terms of the cashflow. I'll explain sometime in my next post why this is becoming a very important element now more than before.

The cash portion has now gone into an overweight territory to 60% this month.

In the immediate term, there are some opportunities I have identified in the banks so I'm likely to monitor the segment closely, should there be a good opportunity to go in. My plan is to go in at batches since the cash is playing an important option to do that.

Hope August is a good month too for everybody :)

Thanks for reading.


Did August fare well in terms of equity portfolio for you?


14 comments:

  1. Welcome back! I am glad you enjoy your holiday. I can see your portfolio growing at a pretty fast pace. Mine is still fluctuating up and down.

    ReplyDelete
    Replies
    1. Hi SR

      Thanks, I enjoyed my holiday very much.

      You are doing well there with your strategy. Keep it going, I think you are going to receive plenty of dividends real soon to add on to your portfolio :)

      Delete
  2. Good spot on the Advancer IPO and especially on UOL! Congratulations on the profits.

    Unfortunately, Kingsmen is likely to remain down for some time though. My personal take is that the retail outfitting division is never going to be as strong as before with the shift in consumers' taste and preferences for more e-commerce related. They will need time to pivot stronger into events and exhibitions, designs etc I think.

    Looking forward to seeing where you choose to splash some warchest next!

    ReplyDelete
    Replies
    1. Hi Daniel

      Thanks for your view.

      I agree that the shift in the retail mix may be a structural and it will take time for the company to evolve. Margins and competitions are also getting stronger so they really need to show and build on their competence to gain the margins they deserve.

      Delete
  3. B,
    dont know why, but your blog post is like watching a drama series..
    strangely (but not in the stalker sense), i always wait in anticipation of what your next buy/sell transaction is..
    somehow you manage to make it very exciting. haha..

    ReplyDelete
    Replies
    1. Hi FC

      Oh nooo :( I'm sad to hear that... hahaha

      I hope the ending will be a happy one, not a sad ending :)

      Delete
    2. i guess, depends on which type..
      the taiwanese or S.korean one, usually cry alot (aka lose money)

      hmmm, indo chinese drama.. so far so good.. quite happy ending...
      munching on my chitato indomie chips.. while watching the drama unfold.. haha..

      Delete
  4. wow, thats a huge amount of warchest! more than my entire portfolio! =)

    ReplyDelete
    Replies
    1. Hi FoodieFC

      It will be a drag if the market continues to stay bullish :(

      Delete
  5. Outstanding returns of 17.4%. Almost Berkshire level! :)

    I decided to sell off my Kingsmen at 0.66, similar reasons as yours, with a 6% gain. With current market condition, I think 2Q will also be weak.

    ReplyDelete
    Replies
    1. Hi Anonymous

      Congrats, at least you made it out there with a gain on kingsmen. I'm still down for this company.

      Delete
  6. wow 60% cash.............. u must be hoping hard for another crash hehehe

    ReplyDelete
    Replies
    1. Hi Felix

      Not really, I'd be happy if the STI can continue to rise even higher as it means I'm booking in more gains (albeit lesser gains than I was if i was to be 100% invested).

      To borrow a quote from Montgomery:

      “Investing for long periods in cash is not desirable. But in the short run cash is like an option over every asset class, with no expiration date and no strike price. Cash provides the option to sweep up a bargain when it becomes available and this must have some value above the fact it earns almost nothing. If the purpose of an investment portfolio is to grow as well as protect the wealth you’ve accumulated over the years, doesn’t it make sense, if you can afford it, to also hold an option?”

      – Roger Montgomery

      Delete
  7. The moment you guys sold Kingsmen, its earning increases =P

    ReplyDelete

UA-57154194-1