portfolio update November 2017

Apologies for the late update. Have been travelling quite a lot recently.

November dividend was like this.

Dividend by month

1) singtel
2) fcot sgx capitacom starhillg fct sphreit cmt
3) spost  taisin lippo nam lee netlink
5) fcot steng sgx  uob sph starhillg fct sphreit cmt cdg hcg lippo Singre
6) tcil ocbc lkh
7) singpost
8) fcot singtel  plife  ocbc  capitacom starhillg sci steng fct singpost sphreit cmt lippo singre ock
9)  uob tcil cdg netlink
10) sgx
11) fcot taisin sgx spost  starhillg fct cmt lippo
12) sph sats ksh ock


Remarks:

With my proceeds from lmg and from the dividends, I added the following.

Added old chang kee at 76c. Should have bought this counter long ago. Hesitated and wow, it multibagged from listing price.

Luckily i kept nam lee in my watch list. when my dividends came, i managed to add some below 40c. Full year result showed improved earnings with nav up to 55c.

Added some more singapore reinsurance, steng, sats and siaen.

Also added netlink trust.





Overall,

nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.

No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.

Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.




DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:


1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?

3) WILL THIS COMPANY STOP INCREASING DIVIDENDS OVER TIME?

thank you, lee metal

I decided to offload my entire lee metal stake. And i think this represented about 5% of the total trade of the day.


To me, 40c represents a premium to the NAV of 38.5c and personally i feel that a discount to the NAV is warranted in the first place for this counter. And moreover, the last result wasn't good. Next year dividend cut might even take place should the earnings continue this way. Long term wise i am still bullish on this counter, knowing where the bulk of its business lies in. However, the price of 40c is too attractive for me not to sell it to the next better investor. Put it in another way, i would not take lee metal private at 40c, but at a lower price than that.


The reason why i bought it at 30c a few months ago is because of its discount to the NAV and I feel that going forward 2c might be maintained. However with this sort of weak earnings, it becoming harder to tell. Personally i dislike buying and selling within such a short span of time and the reason why i had lee metal in the first place was to add 4 streams of dividends in the coming months. But things turn out the way it did and after careful consideration, for me, this is the best course of action.

Sure, i could still be entirely wrong in my thinking, And some billionaire could appear and take lee metal private at a higher price... I don't know


Disclaimer:

The above forms ONLY my own personal views.

Portfolio update October 2017 and Lee Metal Group

Dividend by month

1) singtel
2) fcot sgx capitacom starhillg fct sphreit cmt
3) spost  taisin lippo
5) fcot steng sgx  uob sph starhillg fct sphreit cmt cdg hcg lippo Singre lmg
6) tcil ocbc lkh lmg
7) singpost
8) fcot singtel  plife  ocbc  capitacom starhillg sci steng fct singpost sphreit cmt lippo singre
9)  uob tcil cdg lmg
10) sgx
11) fcot taisin sgx spost  starhillg fct cmt lippo
12) sph sats ksh lmg

Remarks:

many of my counters became very bullish following gains on the STI, including fct fcot suntec lkh etc.

one of them, which i had forgotten to update is lmg, which i just bought about 2 months ago, at a net price of around 0.295 (0.005 dividend received after buying it), represents an impressive paper gain of more than 25% in 2months (lmg 0.37 at time of writing this)












my comments:


Overall,

nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.

No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.

Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.




DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:


1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?

3) WILL THIS COMPANY STOP INCREASING DIVIDENDS OVER TIME?

portfolio update - september 2017

Dividend by month

1) singtel
2) fcot sgx capitacom starhillg fct sphreit cmt
3) spost  taisin lippo
5) fcot steng sgx  uob sph starhillg fct sphreit cmt cdg hcg lippo Singre lmg
6) tcil ocbc lkh lmg
7) singpost
8) fcot singtel  plife  ocbc  capitacom starhillg sci steng fct singpost sphreit cmt lippo singre
9)  uob tcil cdg lmg
10) sgx
11) fcot taisin sgx spost  starhillg fct cmt lippo
12) sph sats ksh lmg

Remarks:

roxy sold on periodic review. gain was about 20% in one year. this counter is undervalued and its growing steadily. however on close review, it doesn't fit into my investment objectives as well as it did previously.

lian beng sold. double bag in 2-3years. again, this is not a bad stock, otherwise it wouldn't have gain so much. however, on close review, the yield at 63c is around 3%+ and divestment could lock in the gains and put these funds to better use.




my comments:


Overall,

nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.

No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.

Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.




DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:


1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?

3) WILL THIS COMPANY STOP INCREASING DIVIDENDS OVER TIME?

Capitacommercial trust

CCT will be having its rights issue to partially fund a 2bil prime ppty in the marina district.

likely i would be subscribing to it, to get exposure to such prime property.

CCT being a reit, has little other option but to have a rights issue to fund such a huge purchase when this opportunity presents. the full positive effects of this might need a few years to take place, something which i think is acceptable to a lot of long term investors like myself. it is still one of the few reits in singapore which is trading below its book.

The rights amount would be slightly less than one tenth of my overall dividend for the year, so this would not have such a great impact and CCT currently occupies about 4% of my portfolio.

Imagine if CCT would occupy say 20% of the portfolio, then probably one has to ponder and ponder about what to do with this rights issue.

my options are still open even after subscribing to it. at 1.363 per new share, it probably won't be long before i can sell it for a profit, should i decide to. so long as the overall counter is still comfortably within my prescribed limit, i think i am fine holding it and milking this cow to feed other cows in my garden.

comfortdelgro and sph - multi year low prices

we see both counters CDG and SPH dropping to multi year lows, the former ended just above $2 today and the latter about $2.60 today.

both are the result of disruptive forces of today's modern world

i believe these two counters belong to many people in singapore, including myself.

i used to think they were very safe. perhaps not so now. 

However, but over a long time, my guess still is that both should be able to weather this and most likely they will not become history in our history books.

i did a portfolio check today, and it remained relatively unaffected still.

main reason is that each counter is about 4% of my total portfolio.

hence every 10% drop in one counter would represent a movement southwards of 0.4%. 2 counters even 20% each will at most affect 0.4x4% or 1.6%, which is rather negligible still. 

main thing i would like to ensure is that they still can maintain their dividends, though a small cut is still perfectly acceptable to me.

if i had only 5 counters in my portfolio of 20% each, and it contained CDG and SPH, the same drop of 20% in these two would mean 4x2% or 8%, which is actually 5x more than what i had, and its nearly one tenth drop.

so portfolio management is quite important to take care of unknown unknowns

why i don't have bonds

recently i met up with my broker. he told me bonds are popular and that i should consider buying.

i ask him how much. he told me 250k a pop

i declined flatly

1) bonds give income which DOESN'T rise with inflation

2) income is taxable in certain cases(pls read the comments below) . ie i need to declare this income

3) its not bao chi as there are reasons why bonds happen and as shown in recent cases, the bond owner might not see his money again.

4) bond prices might fluctuate. how volatile i dunno as i dont watch this



buy bonds? i rather watch james bond