My Investment Portfolio (November 2009)

We are coming near the end of the year, and it will be time to take stock again and reflect on 2009 and of course, plan for the coming year. The Dubai World credit incident had reminded us to be prudent when investing, as there is always risk out there that might upset one's plan. However, as I have said a few times before in this blog, having a plan and following through your plan is important in investing. Try not to speculate. Rather, have a long term investment plan in hand and ignore short term market noises.

This month, my portfolio had been positioned defensively as markets had ran up quite a bit since March. I have received quite a decent sum of dividends near the end of the month, courtesy of some REITs in my portfolio. Those dividends had been re-invested back into the market, mostly via rights issues.

I have participated in the following rights issues this month - Aztech, Centillion, Goodpack, Hai Leck, K-REIT Asia, Linair, Mermaid Maritime and Plato Capital. I have also attended MI-REIT EGM this month. It was indeed a good experience for me as this EGM was well covered by the media.

I have also accepted the offer from CPT International Limited for my China Precision Technology shares. The proceeds from this offer had been used to add onto my existing two holdings - i.e. Lee Kim Tah and PNE Industries. As for my top 30 holdings, there is no significant changes but K-REIT Asia is in the list this month due to my participation in its rights issue.

Next month, I will reserve some funds for early warrant conversion for my Transpac Industrial Holdings (i.e. TIH) warrants, as explained in my earlier post. I will also participate in some rights issues, with the MI-REIT rights issue being the main one.

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

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

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. Fortune REIT
2. Tan Chong International

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

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

Transpac Industrial Holdings Warrants

Normally, I don't exercise company warrants way before expiry date since it makes no sense to do so, as one would be losing the time value (if any) of the warrant and also locking in the money into a stock when there might be better investment opportunities. Since company warrants (American style ones) allows one to have the option to buy the underlying share at exercise price on or before expiry, one can hold onto it while still be able to participate in the company's share price appreciation.

But Transpac Industrial Holdings (i.e. TIH) warrants gives me something to think about. The company had declared a interim dividend of 40cts per share, which means I will lose out on this big dividend payout if I don't exercise those TIH warrants that I am currently holding in my portfolio. There had been no news from the company about adjusting the warrant exercise price to reflect the big dividend payout, therefore I assume that there will be no change in the warrant exercise price or warrant conversion ratio.

Such a big dividend payout meant that by exercising the warrants, I am paying $1 per share and getting back 40cts per share within a month.

With the above thoughts in mind, I have decided to exercise my TIH warrants way before expiry and convert them to shares before ex-dividend date.

Creative Technology AGM - 29 Oct 2009

The AGM was not very well-attended as there were a lot of empty seats in the auditorium. Considering the company having nearly 14,000 shareholders in the list (Based on the latest annual report), it was indeed a very poor turnout.

The focus of the AGM was on the Zii platform and how much the company is going to burn cash in supporting this new product line. Questions had been asked when the company can break-even and how they are going to execute their strategy going forward. Mr Sim gladly took most of the questions and explained in detail his strategy for Zii going forward. He also recalled the difficulty when he started to market Sound Blaster years back but succeeded in convincing the US market and became the authority for PC sound. He sounds confident that he can duplicate the success this time with Zii in China.

As for the question for the fear of the chip being copied, Mr Sim assured shareholders that the Zii chip will not be able to be duplicated by other manufacturers. Meanwhile, to sustain Zii, he is diverting the cash flow from the other businesses into it.

Shareholders are obviously concerned about the burn rate with one citing $10 Million burn-rate per quarter, but with US$250 Million cash in the balance sheet and bascially debt-free, Mr Sim was confident that he can make it through this time round. He also expect Zii to start contributing to the bottom-line in two years time. He said that Zii is not only a chip, it comes with a SDK (Software Development Kit), OS (Operating System) etc. Developers can choose to customize their own applications by using the SDK provided. Zii also support Android, a great news for Google fans.

The future of Creative is certainly with Zii. With cash from selling their headquarters building (Creative Resource) and from their other businesses, it remains to be seen how long the company can sustain with Zii yet to be profitable. Shareholders like me will be hoping Mr Sim can pull out the rabbit out of the hat from Zii this time round.

My Investment Portfolio (October 2009)

Nothing much is happening in the market this month, as it started to pull back a bit after an amazing run since March this year. As I've said in my previous monthly portfolio post, I have positioned my portfolio more defensively since last month. Therefore, there had not been much aggressive buying from me in the market, especially in the small cap space. My strategy for the remaining two months of this year will still be defensive - i.e. Entering via rights issue and buying blue chips and value stocks on weakness.

I have participated in a few rights issues this month - i.e. Fortune REIT, Genting Singapore, Indiabulls, See Hup Seng warrants and Wee Hur warrants.

I have also accepted the takeover offer for my Sihuan Pharmaceutical shares. The proceeds had been re-invested into some of the above rights issues. I have also participated in the scrip dividend scheme for Jardine Strategic, OCBC and United Overseas Australia shares. Finally, I have exercised my Eng Kong company warrants and converted them into shares.

I have also attended two AGMs this month - HMI and Creative Technology. Will pen some of my thoughts on these two companies after attending their AGMs.

Next month, there will be some more rights issues to subscribe to, the big ones being K-REIT and Mermaid Maritime. 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 31 October 2009)

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

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

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