Thursday, September 30, 2010

My Investment Portfolio (September 2010)

STI was strong for most part of the month as it crossed 3000 points convincingly. It ended the month near 3100 points as investors bought stocks across the board. Obviously, the market is quite confident of corporate earnings going forward.

For my top 30 stock holdings, there are two new entries in the list this month due to price appreciation - Genting Singapore PLC and Singapura Finance. Genting S'pore had performed well this month, mainly due to its recent set of result which surprised the market. Singapura Finance is more of a "quiet" stock in my portfolio but it had surprised on the upside this month. I have shared some of my views on this company at sgfunds.com some time back and those interested can visit the site to read more about this company.

For this month, I have exercised my right under Section 215(3) of the Company Act and tendered part of my Parkway Holdings shares to the offeror in order to generate some funds for some upcoming rights issues and new IPOs. However, I still hold the remaining shares in hand just in case they decided to keep Parkway listed. I have accepted the offers for my Pine Agritech and Swissco International shares. I have also participated in the following scrip dividend schemes - Cambridge REIT, Hour Glass and Mercator.

I have bought the following companies from the open market this month - Asia Enterprises, BBR Holdings, Bonvests, Cogent, Del Monte, Guthrie GTS, Hotel Royal, Hour Glass, Jacks International, LHT Holdings, Orchard Parade, Sin Heng, Singapore Reinsurance Corp, Stamford Land Corp, TCT, UIS and Wheelock Properties. I have also subscribed to the following preferential/rights issues - Ascott REIT and China Paper.

Next month, I will reserve some funds for upcoming rights issues and IPOs. I will continue to invest back into the market on selective stocks defensively, as the market had ran up quite a bit in September.

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

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

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. General Magnetics
6. Fastech Synergy
7. Beauty China
8. Memory Devices

My Unit Trust Portfolio:



Blogger Everlearning said...

Hi ghchua,

I happen to have Novo shares and am requested by the company to indicate my preference to list in Singapore or Hong Kong Listing.

Some shareholders express excitement when Singapore Companies are pending for listing elsewhere. Then, the next moment, you tend to notice that the share price surged and investors to show interest. Likewise, Novo shares follow this pattern.

Please share with me how one should react if one encounters the unusual.

4:41 PM  
Blogger ghchua said...

Hi Everlearning,

I am not a short term investor. Therefore, I don't react to short term market movements. As long as your portfolio is well-diversified, an unusual movement in one of your stocks should not affect your portfolio that much. Therefore, I am not concerned about unusual movement in a specific stock in my portfolio at any time.

Ultimately, whether Novo shares will do well in the long run depends on the business itself. Whether it is listed on S'pore or Hong Kong doesn't make a lot of difference to me, although listing in a bigger exchange might give it a higher profile and another avenue for the company to tap onto the capital markets.

1:54 AM  
Blogger Everlearning said...

Hi ghchua,

Thanks for your sharing.

I think I need to make a choice here and listing this share in the Singapore Listing makes sense to me because I only invest in Singapore equities.

I don't think I am knowledgeable enough to go into the global market. Staying focus in the local maarket is good enough for me to learn investing personally.

7:14 AM  
Blogger chsong said...


Your blog is most informative and inspiring. Would like to seek your expert advice on something.

As mentioned in your entries on Parkway and Transcu, when companies get acquired (over 90%) and the acquirer decides to continue listing the shares via vendor placement of parent company shares or placement of new target shares, what is the implication for minority shareholders? Is this favourable or should shareholders quickly cash out at the mandatory Offer Price to avoid getting manipulated/shortchanged?

You mentioned that you exercised Section 215(3) of the Companies Act to cash in on some of your Parkway shares. Could I check how we could do so? Do we have to get a lawyer to assist, or do we approach SGX/CDP/company? In my case, I do see favourable fundamentals in Design Studio, but fear the risk that the company might be sucked dry by its acquirer Depa Studio via various means.

Appreciate your kind advice pls.

7:53 AM  
Blogger ghchua said...

Hi chsong,

If a company decide to continue listing after an offer, it will have to keep its free float at above 10%. Therefore, it is under listing rule that they have to comply and do a placement to get the float back. I don't think this is favourable or shortchanged to minorities. If you are positive on the future prospects of the company, you can continue holding onto your shares.

What I did for Parkway Holdings was to write to the offeror and request them to acquire my shares under Section 215(3) of the Companies Act. Subsequently, their corporate lawyer sent me a letter and I went down to sign a CDP transfer form in front of the witness at their lawyer's office. I received a cheque from them around 2 weeks after that.

Since you are positive about the prospects of Design Studio, you should hold onto your shares, since Depa already said that they will maintain its listing status. Since Design Studio is listed, they are subjected to SGX listing rules, which include having independent directors on the board. Therefore, your interests as a minority shareholder of Design Studio will be protected, just like any SGX listed companies.

8:52 PM  
Blogger chsong said...


Thanks for the speedy reply. I think in theory, any listed company with indep director on board should protect the interest of all shareholders equally. Just for intellectual discussion, I'm wondering what are some of the real life potential pitfalls that could trip minority shareholders in such situations. What puts me on guard is the trouble that the acquirer would take to acquire over 90% of the share, and THEN decide to float it publicly after all. I mean companies being rational, they should have done their sums and decide whether they would delist the company, before undertaking all the costs and trouble to do such acquisitions?

I do know of companies whereby majority shareholders with strong controlling interest play minorities out, either through various rights/in-specie share issues so that minorities end up with unpalatable odd lots, or via private placement of shares to affiliated parties at significantly discounted share prices. Based on your practical experience, would any of such red flags come to mind when you face a situation like mine?

I guess it boils down to what Buffett said about not doing business with management you don't trust.

8:31 AM  
Blogger ghchua said...

Hi chsong,

Definitely there are some pitfalls involved. But in Depa's case, I think they had came out with the original intention to keep the company listed. Therefore, there is no surprise to me that they wanted to keep it that way. Yes, there are costs involved in keeping a company listed but there are other benefits like higher profile, availability of capital markets for funds etc.

What you had mentioned are true and it did happen to some companies. But I believe the majority of companies out there are good and honest ones. The key to me as an investor is to diversify my bets and not to buy a lot of shares in one company. I cannot avoid pitfalls but at least I can reduce its impact on my portfolio when it happened through diversification.

I am not Buffett therefore I choose to be a diversified investor not a focused investor.

8:02 PM  
Blogger SGDividends said...

Hi ghchua,

would like to ask why you choose ocbc instead of either uob or DBS ?

What's ocbc comparative advantage vs the other two?

3:40 AM  
Blogger ghchua said...

Hi SGDividends,

I do own both DBS and UOB in my portfolio but my stake in OCBC is larger in terms of value. I like OCBC more than the other two banks because it is a more conservative bank and their Indonesia operations is doing well. I also like the insurance arm of OCBC, i.e. Great Eastern Holdings.

In fact, I like finance companies more than banks as it can be seen that both Hong Leong Finance and Singapura Finance are currently in my top 30 holdings list as well.

4:09 AM  
Blogger SGDividends said...

thanks ghchua,,

Is there any particular reason why you prefer finance companies instead of banks?

Sorry i know i am getting abit irritating.. :)

9:12 AM  
Blogger ghchua said...

Hi SGDividends,

Two main reasons:

1. They are simple business to understand than banks.

2. They are trading at cheaper valuations. Some even trade at below NAV, though they are profitable.

2:08 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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