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Wednesday, September 30, 2009

My Investment Portfolio (September 2009)

There is not much changes in my top 30 holdings list this month, probably due to the fact that markets had been less volatile lately after a sharp run-up since March. Value is now a little difficult to find, but there are still some good stocks to pick. Going forward, I will position my portfolio more defensively and also try to enter the market via rights issues so as to give myself a margin of safety to play with.

I have participated in a few rights issues this month - Rowsley, MAP Tech, GMGGL, Global Yellow Pages, Federal, China Sports and CitySpring Infrastructure Trust. Again, rights issues provided me a good chance to enter into these stocks at a discounted price from the market. This strategy is especially useful if the market is not undervalued.

I have also accepted the delisting offer from Keppel Land for my Evergro Properties shares. I have elected to receive the proceeds in Keppel Land shares so as to participate in any upside potential of Evergro Properties, though in a smaller exposure. This also saves me the headache of having to decide where to re-invest those proceeds back into the market.

Next month, there will be some more rights issues to subscribe to, the big ones being Fortune REIT and Genting Singapore. Again, I will possibly reserve most of my funds for rights issues, so there would be minimum purchase from the market.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 September 2009)

Top 30 Holdings (Sing$ Denominated shares)
1. Noble Group
2. SGX
3. Raffles Education Corp
4. A-REIT
5. CapitaMall Trust
6. Jardine C&C
7. Bukit Sembawang Estates
8. F&N
9. SembCorp Marine
10. CapitaLand
11. ComfortDelgro
12. CitySpring Infrastructure Trust
13. Parkway Holdings
14. KepLand
15. Rotary Engineering
16. Tiong Woon Corporation
17. Cosco Corp
18. Hong Leong Finance
19. Wheelock Properties
20. Ascendas India Trust
21. CapitaCommercial Trust
22. Low Keng Huat
23. Pacific Andes
24. OCBC Bank
25. Keppel Corp
26. WBL Corp
27. CDL H-Trust
28. SP AusNet
29. SingTel
30. Ho Bee Investment

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Dairy Farm
3. Hong Kong Land
4. Jardine Matheson
5. Mandarin Oriental

Top Holdings (HK$ Denominated shares)
1. Tan Chong International
2. Fortune REIT

Top Holding (Aust$ Denominated shares)
1. AustLand PG
2. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
4. A-REIT
5. SingTel

My Hong Kong Stock Portfolio (listed on SEHK)
1. Peace Mark Holdings

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199

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5 Comments:

Blogger donmihaihai said...

Hi ghchua,

My guess is you rejected the offer from Peace Mark Holdings for Sincere Watch or accepted Peace Mark shares in that acquisition. With the recent problem in Peace Mark and the buyout of Sincere at a price way lower.. What will happen to you? Care to comment?

10:41 PM  
Blogger ghchua said...

Hi donmihaihai,

I accepted the offer from Peace Mark for my Sincere Watch shares one year ago and therefore I no longer own any Sincere Watch shares currently. Actually, I have rejected the offer initially but I exercise my right under the Company Act to request them to acquire my shares after the offer closes since they changed their intention and decided to delist Sincere Watch from SGX. I don't like to hold unlisted companies and therefore I will always accept an offer if after an offer closes, the company is not listed.

I still hold some Peace Mark shares, as you can see from my monthly portfolio updates. As you might have known, they were part of the cash+share offer from Peace Mark when they made the offer for Sincere Watch.

As to the fate of Peace Mark, I guess shareholders like me will have to wait for updates from the liquidators.But Sincere Watch shareholders who didn't accept the offer last time round are still holding the company now as an unlisted company. The buyout is definitely not attractive to current Sincere Watch shareholders since it is a "fire sale" by the liquidators to get as much money as possible soon to pay off Peace Mark's creditors.

6:35 AM  
Blogger donmihaihai said...

ghchua,

I didn't follow Sincere Watch at all except knowing that they was being bought out by someone not too long ago and the recent news of the sales.

Another few more questions
1) Was Peace Mark listed when the offer was made?
2) Has you received Peace Mark's annual reports post acquisition? If so their financial position is clearly being known.
3) While the minority shareholders get a fire sale price, if the financial position of peace mark is way off, then isn't it is better to be shareholder of Sincere watch?

These are my wild guess and questions but assuming Sincere Watch is Peace Mark best asset, and by selling their best asset at a fire sale price, I think end of road is just not far for peace mark.

10:46 PM  
Blogger ghchua said...

donmihaihai,

To answer your questions:

1. Yes. Peace Mark was listed on SEHK when the offer for Sincere Watch was made.

2. Yeap. I have received an annual report from Peace Mark. At that time, I was also quite put off by the high debt on their balance sheet. But their share price was already quite low and I did not hold a lot of Peace Mark shares since most of the cash+share offer was actually in a form of cash. Therefore, I did not take any action.

3. Difficult to conclude. But for those who accepted the Peace Mark offer last time, they would be able to get around $2+ cash for each Sincere Watch share plus of course, some odd lots of Peace Mark. Compared with one who hold onto his Sincere Watch shares till now and get a "fire sale" proceeds of maybe around 53cts per Sincere Watch share currently. I think those current minority shareholders of Sincere Watch will be having a raw deal.

Having said the above, I am prepared to write off all my Peace Mark shares in my portfolio. Anything more would be a bonus for me.

6:09 AM  
Blogger Meow said...

Hi ghchua,

I'm also an owner (of worthless?) Peace Mark shares, since suspension in Aug 2008. I notice that trading is still suspended, even after going through liquidation? I would have expected de-listing, but it seems that there continues to be ''adjournments to winding up petitions.'' Do you have any insight as to what could happen? Have the shareholders already been wiped out? Thanks in advance.

10:56 AM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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