The covid crisis continues to rage around the world, quite bad in neighbouring Malaysia, warranting the leader to call for a lock down.
I continued to stay the course and added more dividend stocks. Tech stocks do look enticing especially when the gains can be so much in such short periods of time. I recall some two decades ago, tech stocks were also in favour then. Local tech stock creative became a stock darling! It made the owner Mr Sim a billionire as creative hit some $60 per share! Truly incredible run up. Now its price $2.54 is less than 5% of that 20years ago. Is anyone willing to bet that the stock will rise from the ashes again and rehit and even surpass its highs once again? More likely that not, any shareholder holding the stock back then and who has held it till now are still suffering major paper losses, not much mitigated by the dividends received so far. The owner is no longer a billionaire but still a very rich man of net worth around 60mil. Now a lot of these tech billionaires created today are worth much more than just 1-2Billion. Quite a number of them are worth tens of billions up to 100-200 billion. Think about it, even if say they would to lose 95% of their wealth, most probably they will still hold their billionaire status and can still afford a GCB and private jet. But the same doesn't hold true for someone who's worth 10m and losing 95% of his wealth. This would put him from a position of literally financial freedom, since at 4%pa, 10m would still give a good 400kpa passive, to degrade him to a net worth of a mere 500k, hardly enough for a single person to live quite a basic sustenance in Singapore. Thats for a person 10M to lose 95% of his wealth. What if he started with only 1m or less and made the wrong tech stock bet? Yeah, consequences might be quite jialat. And more often than not, they don't pay much dividends. A lot of them don't pay at all.
Keeping the above in mind, I better stick to what i know best, ie dividend stocks.
Ok, back to update proper.
Added more stocks : Allan International, Cross Harbour holdings, UOB, MBM resources and Paramount corp.
Allan Int. Deeply undervalued stock. Large cash holdings with lots of prime properties. Steady dividend ship. Gia Lui while waiting for value to be unlocked.
Cross Harbour. Quarterly payouts. Also deep value. Big special dividend might just happen one day. Steady asset growing counter and slow rise in dividends payout over time. Slow and steady wins the race.
MBM resources. A bit erratic the growth pattern but discernible rise over time with rise in dividends. Lots of shop spaces, factories and shophouses noted in its AR
Paramount corp. A generous dividend counter. Not afraid to share profits and dividends with shareholders. Deeply undervalued, with real value some 2-3x current share price. Sad news that its founder recently passed away.
Dividends list. Number on left denotes month.
1) singtel Panasonic tai Cheung Chen Hsong holdings Takaful P&O Pokfulam Safety Godown MagniTech GSK. Allan International
2) sgx plife starhillg fct sphreit cict mit suntec hsbank lian beng nam lee singpost LPI capital FEC pokfulam Rhb
3) taisin hsbank petronas clct pbb clp zhulian hysan SHK P&O GMsia Wellcal Water Oasis MBM resources
4) hsbc dbs cimb TNB P&O MagniTech GSK
5) steng plife sgx uob sph starhillg fct sphreit cict cdg hcg Singre mit sci suntec hlf ocbc ge ckh P&O UnitedPlantn HoBee LHT L&M SHKCo Vicom
6) netlink hsbank maybank petronas Kc dbs hkland FLT clp zhulian Lung kee goldlion hung hing P&O pokfulam Wellcal WingOn Water Oasis Rhb LKH Tai Sang Giordano Raymond Cross Harbour MBM resources Paramount corp
7) singpost tcil hsbc bochk aeon creditHK hk Beijing enterprises KWAH Miramar Hotel GMsia Pokfulam MagniTech Yip Chemical Nanyang Holdings GSK Cross Harbour
8) singtel suntec ocbc starhill sci kc steng fct singpost sphreit cict ock siaen mit sats uob cdg sci ksh gpi dbs LPI capital P&O Oriental Holdings FujiK PYF Vicom
9) plife hlf singre clct petronas hsbank ge hsbc ckh pbb clp wantwantchina Panasonic tai Cheung zhulian Chen Hsong holdings lung kee goldlion hysan Miramar Hotel Safety Godown Wellcal Tai Sang Giordano L&M SHKCo Allan International Cross Harbour MBM resources Paramount corp
10) sgx tcil lian beng hkland hsbc maybank bochk aeon creditHK hkbeijing enterprise SHK TNB K WAH Hung Hing P&O GMsia MagniTech WingOn Yip Chemical Nanyang Holdings Raymond GSK
11) taisin sgx spost plife starhillg fct cict siaen mit suntec dbs netlink hsbc cimb FEC Oriental Holdings
12) sph ksh ock sats ksh gpi petronas FLT CLP wantwantchina zhulian FujiK UnitedPlantn Wellcal PYF Cross Harbour
HI Paul,
ReplyDeleteLong time no chat. Just to check with you something. Since you have a sizeable counters overseas, are they all custodian accounts by our brokerages?
Do you try to manage such "platform" or ""underwriting" risk through multiple accounts or is there any other way of reducing such risks?
I mean be kind of Drama, but given HK subtle shifts, I wonder if one day the unthinkable of CLOB SAGA happen in HK?
Hi Sillyinvestor,
ReplyDeleteyes, they are all custodian accounts by bank broker for overseas counters. Bank broker, i have two of them. I think I feel pretty safe with them. Corporate matters usually handled promptly also. So far no screw ups.
Clob saga, well, anythings possible. So long as holding power is there, I think it should be ok. Even if shares are "locked up", dividends should still be paid out accordingly. The ones die standing are those that short long shares and buy on margin etc.
much more likely than clob are forex fluctuations up and down.