Friday, April 30, 2010

My Investment Portfolio (April 2010)

The story of this month had been the debt problems with the PIIGS, with Greece’s debt crisis been very much in the news. STI finished this month below 3000 points, and not much had been happening actually with most of the companies conducting their AGMs this month.

For my top 30 stock holdings, it is "as it is" as usual. Not much changes, a boring portfolio I must say. But Cheung Woh Technologies had managed to squeeze into my top 30 list for the first time. This Precision Engineering firm had a good cash flow, nice little balance sheet and easy to understand business. With most of the technology stocks having outperformed the market recently, the gems are out there for investors to pick them up to ride on the expected technology cycle upside.

General Magnetics is a new entry in my unlisted companies list. Unlike most of the companies in the list, General Magnetics certainly have value to be unlocked. I shall wait for more updates from the company with regards to their future plan and whether they are going to offer an exit for minorities. They have also yet to hold their AGM, and I wait for their annual report as well.

For this month, I accepted two exit offers - China Lifestyle and Jurong Cement. Their proceeds had been re-invested back into my portfolio. I have also participated in Anwell rights issue and converted my Lee Metal company warrants to ordinary shares.

I have also bought the following companies from the open market this month - AsiaMedic, Aspial Corp, Heatec Jietong, Intraco, LHT Holdings, Nippecraft, PNE Industries, PSC Corp, Sin Ghee Huat, SP Corp and UIS.

I have went through quite a number of annual reports this month. This is to obtain some re-investment ideas for next month, whereby there will be a lot of companies with financial year ending 31 December 2009 giving out dividends.

Next month, I will convert my Viz Branz warrants to ordinary shares. I will also start to re-invest back my expected dividends collected from my portfolio prudently back into the market.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 April 2010)

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

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
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
4. China Printing & Dyeing Holdings
5. FerroChina Limited
6. General Magnetics

My Unit Trust Portfolio:



Blogger Everlearning said...

Hi ghchua,

First and foremost, I want to thank you for sharing the various platforms you use to purchase your stocks in the open market.

You are indeed a very sophisticated investor in stocks investing and a very patient person who is willing to share your knowledge with any reader without an ulterior motive.

I browsed the unit share POEMS and could not understand the figures. I noticed that there were more people placing to buy than sell. Would you mind sharing with me why you buy unit share? What is the mininum share to buy?

Thanks again. I logged into my CDP account to track my records recently.

10:08 PM  
Blogger ghchua said...

Hi Everlearning,

I guess investing is a long journey. When I first started on this journey, I did met some experienced investors who are willing to open up and share with me their knowledge. Therefore, I don't mind sharing what I know to fellow investors, who might need some help along the way. In fact, I am also learning along the way as I share my experience with other investors out there. There is no you win or I lose in sharing. Ultimately, we all strive to be better investors and everybody will benefit from sharing.

The main reason why I use unit share market to buy is because I cannot afford to buy one lot of some of those blue chip stocks. I started accumulating some of these stocks from the unit share market, and slowly diversify and build up my portfolio. Another reason is that sometimes one could take advantage of mispricing in the unit share market as it tends to be less liquid.

Minimum share to buy is actually one share, but it will not be cost-effective as one will incur a minimum brokerage of $10. Therefore, it is more efficient to buy let's say a few hundred dollars worth of unit shares instead.

I guess what you have seen is that there are people in the queue to buy unit share, but it doesn't mean that there are no sellers out there. The sellers are not willing to put out an offer simply because there is a risk that they might be selling less than they put out, thereby incurring a minimum brokerage of $10. Let's say you put out 500 shares to sell and only one share being done at the end of the day. You end up paying the broker.

Therefore, most sellers in the unit share market will just sell at the price that the buyer is bidding, in order to sell a decent amount of shares. But that doesn't mean that there are no sell offers at all. If you look at those STI stocks, there are actively sellers putting out their offers.

7:06 AM  
Blogger cif5000 said...

Hi ghchua,

For the 2nd month, you had purchased LHT. Mind sharing your thoughts on this one?

8:58 AM  
Blogger ghchua said...

Hi cif5000,

I went through their annual report and quite like what they have written. I have wanted to purchase some more because I couldn't get enough of LHT last month. In fact, I have this stock in my portfolio for many years but decided to overweight it more in my portfolio this time round.

Another reason is that I have limited funds this month and therefore my purchases are mostly restricted to sub-10 cts stocks, especially early this month. LHT, PNE Industries, SP Corp, Nippecraft etc all fits into this category and therefore I just spread my purchases out in these stocks. Later this month, I have received my salary and I went on to purchase higher priced stocks.

8:03 PM  
Blogger Everlearning said...

Hi ghchua,

Thanks for your meticulous sharing on the unit share market. I could now look into acquiring blue-chip stocks with possibility in the future.

Is there a maximum limit of buying unit shares on POEMS? I notice that there are two boxes for indication, whether to buy/sell "all or none" and "day".

Therefore, there is no way that the broker could make the buyer to buy one share or the seller to sell one share at the end of the trading day if both parties have indicated the "all or none" box.

9:22 PM  
Blogger ghchua said...

Hi Everlearning,

I don't think there is a maximum limit in buying unit shares at POEMS. But if you exceed 999 shares (for a counter with board lot of 1,000 shares), you will have to pay normal board lot brokerage (i.e. minimum $25).

Also, the system don't allow you to submit more than 999 shares in one trade. But of course, you can submit a few trades of 999 shares.

Yes, you can use "All or None" feature but there must be a corresponding match in price and quantity. Otherwise, the order will be rejected immediately. Which means, an "All or None" order cannot be partially filled and it cannot be maintained throughout the day. It had to be filled immediately or be rejected. Sometimes, due to the less liquid nature of the unit share market, buyers might bid very low and seller might offer very high. There is no way you can buy/sell at a good price by using the "All or None" feature.

For more information, you can read:

1:52 AM  
Blogger Everlearning said...

Hi ghchua,

Wow! It is not as simple as it seems. Would it be better off to buy blue-chip stocks by using SBPlan?

Somehow, I feel that SBPlan has one obvious disadvantage and that is the broker is buying in for his clients on a particular day and that the price of the share can be easily manipulated.

I have suspended this scheme since last September because I noticed that I was often buying on the higher bids. I wrote to the broker, that was assigned to me, about my intention of discontinuing this plan and what must I do next? I am still waiting for his reply, what else can I do?

6:22 AM  
Blogger ghchua said...

Hi Everlearning,

SBP is for those who wish to buy blue chip stocks but are not too concerned with the share price, with some purchases every month. It seems to me that you are quite concerned about it, and therefore it might be better for you to execute your own trades.

I am not too sure about SBP as I never participated in it before. However, I think there should be a form to opt out of it right? Maybe you can check with Phillips Securities or call their help line.

9:46 PM  
Blogger Everlearning said...

Hi ghchua,

Thanks, one fine day I will make my way down to Phillip Securities to find out more about SBP.

I tried out the Unit Share placement this morning. True enough as you shared, my bidding was rejected immediately because there was no match. Indeed, I have learnt something new today.

11:46 PM  
Blogger ghchua said...

Hi Everlearning,

Glad that you have learnt something new. Investing is a life-long learning journey and hope that you can stick around and enjoy it! :)

7:32 PM  
Blogger David said...

Hi ghchua,

Notice that you have acquired some new holdings but I couldnt keep my attention off Nipplecraft. Not trying to object this move but I'm really curious about this decision. According to the books, its ROE has dropped by 2.77% and EPS has dropped tremendously throughout the past years. From the statements, it has very heavy exposure to Europe and US which is very unstable now. It seems to me you have alot of faith in the management. Hope you can share your views on this.

10:59 AM  
Blogger ghchua said...

Hi David,

Nippecraft is a deep value play, not a growth play. I don't really look at EPS or ROE when buying deep value companies. Company have little debt, not really in trouble. Though profits have dropped, their operating cash flow is still good. Not much cash outflow. Cash in bank quite consistent.

Most importantly, NAV is 19cts but share price is only 35% of NAV. Whichever way you look at it, the margin of safety is good enough for me to invest in it. Also, I am looking at penny stocks (i.e. less than 10cts category) last month as I don't have much cash to invest. Therefore, I have to make do with what I have and what is avaliable out there.

7:29 PM  

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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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