Digital disruption continues at SPH and the pain continues.
This counter has been on a downtrend, gone below 3.50 today.
It used to be in the core holdings of a lot of people in singapore, especially the older folks. But looks like times are changing fast and people are going digital faster than we had imagined.
IMO this counter will continue going down, until some of its many business ventures bears fruit. A read through its AR shows that it owns many websites and businesses. Downside will be limited its regular dividend and by its significant property portfolio and the stake it has in SPH reit.
Effects on my portfolio
I don't see SPH going bust, because as mentioned above, it is a property aspect to provide a concrete floor to its price.
It constitutes less than 5% of my entire portfolio, so even a fall from $4 to $3.5 will erode less than 1% of my portfolio.
Long term wise, it still provides very stable cash flow to the 5 and 12 months of the year, and it pays like clockwork, complementing the dividend effects of the other counters in my portfolio.
It is merely a member of a financial orchestra, made up of many other members, the full effect of it is much more than the sum of its individual parts.
Cheers!
Happy Chinese Year to All!!!
This counter has been on a downtrend, gone below 3.50 today.
It used to be in the core holdings of a lot of people in singapore, especially the older folks. But looks like times are changing fast and people are going digital faster than we had imagined.
IMO this counter will continue going down, until some of its many business ventures bears fruit. A read through its AR shows that it owns many websites and businesses. Downside will be limited its regular dividend and by its significant property portfolio and the stake it has in SPH reit.
Effects on my portfolio
I don't see SPH going bust, because as mentioned above, it is a property aspect to provide a concrete floor to its price.
It constitutes less than 5% of my entire portfolio, so even a fall from $4 to $3.5 will erode less than 1% of my portfolio.
Long term wise, it still provides very stable cash flow to the 5 and 12 months of the year, and it pays like clockwork, complementing the dividend effects of the other counters in my portfolio.
It is merely a member of a financial orchestra, made up of many other members, the full effect of it is much more than the sum of its individual parts.
Cheers!
Happy Chinese Year to All!!!
Hi Paul,
ReplyDeleteDo you see SPH transformation to digital world more of a execution issue....top management at the helm just not suitable for such role ?
Hi Paul,
ReplyDeleteDo you see this unexciting SPH digital transformation more of a execution issue.....top management at the helm just not suitable for the role? I lost interest in SPH quite a while back. They are just not sexy enough for the new world.
Hi JC
ReplyDeletetop management at the helm are certainly involved in the decision making with regards to this digital transformation.
i think its also not easy to be truly cognizant of pace of this digital discuption and to institute changes accordingly, especially when we are talking of a large cap like sph.
...at least if the head doesn't do his job well, we know whats going to happen in a matter of time.
vested (but won't add more)
Hi Paul,
ReplyDeleteI have SPH and Starhub as core holdings. So, double dose of pain for me. Haha.
Happy New Year!
Cheers,
Farmer.
Hi PIF, u have income in the months of 5,6,8,11,12, nearly half of the months of a year fixed up. Provided the % of sph and starhub is not very large, I think it should be fine. just continue building...
ReplyDeletehappy chinese new year to you and your family too!!!
Hi Paul and Farmer,
ReplyDeleteI have both SPH and Starhub as well. Let's "enjoy" the pain and dividends together.
Gong Xi Fa Cai!
hi Sanye,
Deletehappy CNY to you and your family!!!
Thanks for sharing. Have been following your blog for last few months. Learning to invest for last 3 years, but over the last few weeks upon reflection, realised that my concept of investing was flawed - was trying to buy cheap stocks, but over time realised that often cheap stocks are cheap for a reason, and without good fundamentals, will just go down. Have realigned portfolio, sold off underperformers, and bought mostly dividend stocks with good reliable history. Will watch and see and slowly add over next 3 years and see if it turns out better.
ReplyDeleteyeah, it took me a while to slowly morph into this strategy which to me makes the most sense.
Deletekeep on adding...
happy CNY!!!
There is no dividends declared for 2017 May for SPH right?
ReplyDeletesph results and dividend announcement typically occurs in april maybe 2nd week. not yet.
ReplyDeletewill have dividends, question is how much? and whether last year one can be maintained. increase is quite unlikely.