Last minute add-ons for 2015

Company	Portfolio (%)
Lee Metal Holdings	10%
Singapore Telecom	16%
Cache Logistics Trust	9%
AIMS AMP Captial REIT	9%
Sembcorp Industries Corp	12%
StarHub (SRS)	18%
Keppel Corp	4%
Dairy Farm International (USD)	6%
Singpost	8%

Cache Logistics Trust recently when through a share dilution private placement price at 94cents was swift. The price drop was also swift causing it to bottom at 86cents. This I believe was for a warehouse acquisition in Australia that will help to bring a net income of 7.1% and WALE of 7.7years. 

I was initially upset because it was not open to unitholders. However, looking back, I think this is a good calculated decision by the the management. They were wanted to complete the acquirement swiftly, a private placement is the way to go with lesser parties involved comapred to the  long process through unitholders!  As long as its value added I suppose its okay!

Cache was one of the REITS i first bought. Price have drop almost 20% at 94cents since i last bought. Hence,  assuming it has bottom out at 86cents, I  decided averaging at 88cents. It still higher than 94 cents private placement but at least its in a better position.

As i learn about dilution of shares, I learnt that this acquisition will positively add on to  cache future returns and what better chance to average down.  The past few days have seen cache rising prices quite well supported raising steadily. It closed at S$0.915 today.  I might still  like to add some more but will have to wait for the right time seeing the slow stochastic has reached 79%. I think it might still climb up till 94cents before correction.

Singapore post stole the limelight last year when Alibaba bought 20% stake in Singpost with it's shares soaring above S$2.  Singpost has been paying constant dividends 3.8% (0.068.yr @ S$1.77) and the switch of focus from traditional post to e-commence is a sign of changing with times with the support of Jack Ma and his team at Alibaba plus the exponential increase of people shopping from Taobao, it is inevitable that Singpost is heading the right direction.

Two Weeks ago(10 December 2015), CEO Dr Wolfgang Baier the man whom revamp singpost business resigned. Not much is reveal on the suddenly resignation but insiders are lamenting on the differences of views with the board of directors. I cautioned a friend on falling knives when he mentioned he was queuing at S$1.705. A day later, Singpost dropped to S$1.660. Seeing strong support over the next 1-2 days, I thought it be good to nibbled some at S$1.665. I was even bullish it was going to turn the corner as it reached S$1.68. 

24 December 2015, the reversal happened when news broke that there will be an external corporate governance probe seeing the price drop 3% to $1.61(lowest in 18months)

Seems like those shouting for $1.50 is becoming a reality. Should I average down abit more or save up in my war chest or just cut .

http://www.businesstimes.com.sg/companies-markets/singpost-tumbles-on-upcoming-corporate-governance-probe

I also average down slightly on Starhub at S$3.58 to S$3.84 when I topped up my SRS account.  I wanted to make sure i do not average down too much with my limited funds. Starhub as a company is highly leverage(we will talk about it next time). I am still in 2 minds if i want to cut my losses or let them roll.

My 6 months Journey Today

Company	Units	Portfolio (%)	FY15 Collected Dividends
Lee Metal Holdings	10,000	12.79%	$80.00
Singapore Telecom	1,200	20.50%	$0.00
Cache Logistics Trust	2,500	10.08%	$42.80
AIMS AMP Captial REIT	2,100	11.78%	$47.60
Sembcorp Industries Corp	500	8.03%	$25.00
StarHub (SRS)	1,000	16.10%	$100.00
Keppel Corp	200	5.50%	$0.00
Dairy Farm International (USD)	200	7.67%	$0.00
NOL	1,500	7.57%	$0.00

Nothing much has changed except the dip in share prices bought  pre 24 August 2015. Dividends collected $335 with a 5.14% Dividend Yield. 

Reflecting back, one of the biggest mistakes was hastily to open a position on Singtel once i saw a dip. As  you can see it makes up a bulk, 20% of my portfolio together with Sembcrop and Starhub. I am looking to wait for the STI index to drop to 2750 range and start accumulating. 

Dairy farm, which I thought I got at good value at $6.59 isnot so good value short term afterall. It took another dip to USD 5.79 but rebound back to USD 5.90 today. As much as I  like to add 300 more shares, I need money for my current renovation for my new BTO. I shall save my bullets. 

Keppel Corp and Sembcorp Industrial is not all rosy. Which one should I add my position too? Sembcorp Ind is now trading almost 15% below NAV and Keppel offers good Dividend yield with its more diversify portfolio.

Lets talk about NOL, being a newbie I am, I was drawn into the hoo ha.. that NOL was going to get sold and at a premium rumors were $1.80 some were screaming for $3 but today we know its $1.30. Now I was so fixated I could make a quick over the weekend. I jumped in and waited the the news announced. $1.30 thats not too bad. no fish, shrimp also okay. But what I didnt know was there are pre-conditions before the deal goes through and that is scheduled till June 2016. When means my  money is tied up till then. for a 5-6% upside and a 30% downside should the deal doesn't go through.

We can sell our shares in the open market but having bought it at the market peak, tranlates to losing money. Hence, I have no choice but to hold on. Lucky for me I wasn't too greedy to contra/leverage/spurge too much in this speculation. 

The discussion on Payscale in Google

Bock says managers at any company should ask, “How many people would you trade for your very best performer? If the number is more than five, you’re probably underpaying your best person. And if it’s more than ten, you’re almost certainly underpaying.”

Link

Small Positions in the November rain

Oh it's raining in November.The rain helps to masked  tears from the falling Market on my recent trades. A big lesson learnt because I lost twice the amount of my annual dividends from my portfolio by Contra In/Out Trade on NOL and Yuuzoo through speculation. Lesson Learnt: Don't kaypoh finger itchy.

On lighter note, I averaged down on AIMS AMP Capital REIT by a little but wasn't able to do so on Cache Logistics Trust before it started climbing up. Well, perhaps the feds hike in December will push prices drop abit for me to increase my positions

End of the road

天下无不散之筵席(There is no never ending banquet under the sun) In short, all good things must come to an end. Inquired her when she was 7,5Years old and we enjoyed the 2.5Years till the gearbox finally came to a halt(Phew!) 3 days before scrap! Prior to that, one of the major setbacks was a broken brake pipe. Other than that, was a wonderful ride.

A New Chapter

Collected my BTO keys yesterday. Great news HDB has done up quite an impeccable job I was pretty impressed. apart from some minor cracks on the wall plaster and shady paint job on the door frames, the overall workmanship i will give it a 8/10.

Opened a Tiny Position with Dairy Farm International

Decided to add a tiny position only 200 shares maybe hastily on Dairy Farm International yesterday. It was between Sheng Shiong and Dairy Farm International.

We will just discuss on the surface here and not get into the details. Sheng Siong seem to be a little pricey for my liking having up a new high recently at  SGD 0.90  but Diary Farm the big giant has slipped a little and they are trading for quite a discount at USD$6.60 .Past performance is never an indicative of future earnings, 

Dairy Farm recently in Aug 2014 invested $925 million to buy 20 percent of Yonghui Superstores Co. as it seeks to tap China’s growing consumer market.This buyout gives Dairy Farm exposure to a growing China grocery retail market. Should they fail to beak into the Chinese market with one of their biggest investment to date, I think it will surely impact the bottom line and we will have to watch our positions closely and revisit 1-2 years from now!

I have been terrible at bottom fishing (1/6 TA, FA even worst) but  I hope to increase my position to 500 shares in near future because i do see a potential in growth in this counter. This should be a great defensive stock. Hopefully Sheng Siong will also be trading for a slight discount in time to come when i built up my war chest!

The problem of being too kan chong in the stock market

How many times have we open a position and only to see it drop lower and lower and lower and before you know it, you are sitting on 10% losses.  Fundamentally, these shares are relatively sound, with good growth and dividends but guess what 3/4 of my portfolio is in red even thought STI has rebound above 3000.

Lee metal, Singtel & Sembcorp Industries were purchased before the 24 Aug 2015 crash. I purchased them at dips hoping to get some buffer but hey dip can dip lower. All these shares reached their 52 Weeks low Singtel at S$3.48, Lee Metals S$0.27 and Sembcorp Industries at S$3.08 but I didn't average down on these good counters because I have exhausted my war chest. Hence, market timing is important and always don't show hand too early :P

I added a small positions to 2 REITS counter AIMS AMP Capital & Cache Logistics recently with my limited funds because I have exhausted them previously. While they do not offer much buffer as I purchased them while on rebound, I am setting aside some money for my war chest and emergency funds in my OCBC 360 account and hopefully I be able to invest when the time arises.

Invest X congress 2015

Missed out on the early-bird ticket because i saw it late. But it was quite an eye opener with presentations  by Victor & Rusmin on growth and value investing. It was a tad fast because i wasn't able to take down notes fast enough but overall it was fruitful!

Managed to grab a photo with mystery man AK71 whom in my opinion is giving society by sharing his knowledge and daily rumbles via his blog. Thank you AK71 :)

Starting from ZERO

An uptrend line intact but trading sideways.

Starting my Journey

Earlier this year(May 2015), a friend was casually mentioned how she made some money from the stock market just 1pip off a penny counter, Xpress Holdings and that got me all interested.

I decided ride the wave together(sharing brokerage) bought a small position on Xpress Holdings and made S$50. Through this transaction I learned it wasn't so simple to make money. To buy cheap and sell high, you need to Queue to Buy & Queue to Sell.

We queued for a few hours got it at 0.017, then when it jumped to 0.018. WOW, SELL!! so excitedly I told my friend to sell them. However, we did not managed to sell it. I was confused why is last done 1 million shares all bought but but I wasn't able to sell my shares! So that night I did some google-ing and read up and of course I realised everything also need to queue. Being kiasu Singaporeans we placed a SELL before the market opened so we can be ahead of the masses. Finally SOLD, so many anxiety for S$50. It took me awhile to figured we can simple buy and sell base on spot price on spot but that an handicap :)

Welcome to the stock market.

The Passing Of A Great Man

“A mutual respect of constantly challenging one another, all for the greater Singapore knowing that at the end of the game, both king and pawn return to the same box.”