Saturday, June 30, 2012

My Investment Portfolio (June 2012)

June 2012 turns out to be quite a good month for investors. STI ended at below 2900 points but the last few trading days had been good. The much-anticipated Greek election did not do any further damage to the markets.

For this month, I have attended the following AGMs/EGMs/briefings - Automated Touchstone Machines Ltd, Radiance, Chemical Industries, King Wan, Cheung Woh, MacCookPSF, Rowsley, Transit-Mixed Concrete, FirstLink Investments and General Magnetics.

For my top 30 holdings, LionGold Corp and Transpac Industrial Holdings returned to the list this month. Orchard Parade is the main mover, as the market cheered its proposed restructuring, special dividend and dividend in specie in a form of YHS shares.

I have bought the following companies from the market this month - BBR Holdings, Bonvests, Casa Holdings, Cheung Woh, Chip Eng Seng, Fuji Offset, Guthrie GTS, Internet Technology Group, Koyo, K1 Ventures, Metro Holdings, MITech, Nam Lee, Popular, Sing Holdings and Wheelock Properties. As usual, there is no sell trade done.

I have participated in the following rights issues/preferential offers - MacCookPSF, Metech International, SP AusNet and Yoma. I have also participated in the following scrip dividend schemes - AIMS AMP Capital Industrial REIT, Aspial, Cambridge, DBS, Hotel Grand Central, Noble Group, Orchard Parade, QAF, Raffles Medical Group, SP AusNet, Tuan Sing and United Overseas Australia.

For next month, I will be busy attending AGMs for companies with financial year ending March 2012. It will also be a tough month for me as there will not be much dividend payout expected. Therefore, I do not anticipate much activities in my portfolio as I seek to preserve cash to pay for my expenses. Having said that, I will continue to look around for ideas and shortlist good candidates for potential investment.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 June 2012)

Top 30 Holdings (Sing$ Denominated shares)
1. Jardine C&C
2. F&N
3. Viz Branz
4. SembCorp Marine
5. Aspial
7. Bukit Sembawang Estates
8. SGX
9. Noble Group
10. Sarin Technologies
11. CapitaMall Trust
12. UIS
13. Metro Holdings
14. Fragrance Group
15. Orchard Parade
16. Singapura Finance
17. ABR Holdings
18. APB
19. United Engineers
20. KepLand
21. Wheelock Properties
23. Sing Investment & Finance
24. The Hour Glass
25. Bonvests
26. Guthrie GTS
27. SP AusNet
28. Hong Leong Finance
29. LionGold Corp
30. Transpac Industrial Holdings

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 Holdings (Aust$ Denominated shares)
1. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
5. Challenger Technologies

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. China Printing & Dyeing Holdings - Under Liquidation
5. General Magnetics
6. Fastech Synergy
7. Beauty China- Under Liquidation
8. Memory Devices
9. Jurong Tech
10. FM Holdings
11. Japan Land - Under Members' Voluntary Liquidation
12. Zhonghui - Under Judicial Management
13. FerroChina - Under Liquidation
14. FirstLink Investments
15. Maveric Ltd - Under Members' Voluntary Liquidation

My Unit Trust Portfolio:



Blogger Frank said...

Hi ghchua,

Would like to know what is your decision on the scrip dividend for internet technology group limited?

11:29 AM  
Blogger ghchua said...

Hi Frank,

Unfortunately, I haven't come to a decision yet. Tentatively, I won't be taking the scrip dividend.

8:13 PM  
Blogger ngcheeki said...

Hi ghchua,

I was unable to attend King Wan EGM on 23 June 2012. Would you mind sharing with me on what has been discussed.

Thank you and have a nice day.

7:29 AM  
Blogger ghchua said...

Hi ngcheeki,

Okie. Here is the summary.

Basically, the discussion centred around the deal. I asked chairman why they structured the deal this way, which exposes the company to so much market risk in a form of KTIS shares.

CEO replied if they were to have more cash component, then the valuation they had been able to sell will be lower. Put it this way, it is a chicken and egg problem. You want more cash, I give you lower valuation. You want more shares, I can give you higher valuation.

Another shareholder questioned the timing of the sale. He said that the company is not desperate to sell, and they can just hold onto EPPCO and Ekarat. CEO explained that there is no guarantee that the companies will continue to give dividends and also they are not the controlling shareholder of the companies. And this is a good opportunity for them to exit, as KTIS had in fact do not need to buy EPPCO and Ekarat since King Wan is not the majority shareholder of the company. KTIS can still go for listing without those shares held by King Wan.

As for the plan of what they are doing to do with the proceeds from the sale, company still haven't decide yet. They will only decide when the money comes in. Meanwhile, let's keep our fingers crossed.

7:23 PM  
Blogger ngcheeki said...

Thank you for your short and sharp summary.

7:48 AM  
Blogger edragon said...

Hi GH,

I noticed that recently you are going for Companies dealing in hard assets more. Can you enlighten?

7:17 PM  
Blogger ghchua said...

Hi edragon,

You are right to say that as it is part of my strategy to position my portfolio more defensively as markets had become more volatile. I am now a full-time investor with no income every month except from stock dividends. Therefore, I cannot afford to let my portfolio swing wildly.

Companies with hard assets like properties are likely to be more stable in terms of share price movement. I had been avoiding high growth companies and concept plays lately.

8:35 PM  
Blogger ghchua said...

Hi Frank,

After serious consideration for the past few days, I have decided to take up the scrip dividend of internet technology group limited. It was a tough decision, as I will be holding some unit shares but I guess I like the potential of the company and therefore decided to take this risk.

2:30 AM  
Blogger Frank said...

Hi ghchua,

Thanks fo your input,i will be taking cash for internet technology group as im in the stage of building up my portfolio up to 100 stocks. Just bot Lum Chang,Popular,Midas averaging,Hiap hoe averaging, still queuing up some good stocks,money is always not enough to buy haha.

Wondering why you are not averaging midas since it hits bottom low.

9:42 AM  
Blogger ghchua said...

Hi Frank,

Midas is a high risk stock, not backed by physical assets like properties. I don't average stocks just because it had hit bottom, but also look at the fundamentals of the company.

I am positioning my portfolio more defensively going forward, and would prefer to overweight more safer stocks.

10:10 PM  
Blogger Frank said...

Hi ghchua,

Really nice meeting you for the first time,nice chatting with you about the investments in stocks. Did you attend hourglass agm? Mind sharing? Thanks.

10:29 AM  
Blogger ghchua said...

Hi Frank,

Nice meeting you too. You can refer to:

10:01 AM  
Blogger Everlearning said...

Hi ghchua,

What would happen if I accidentally keyed in the wrong numbers of rights application as excess rights application at the ATM machine?

Would the company make any rectifications for me by making right the exact amount of rights entitlement and reimburse the excess amount back to my bank account?

7:32 PM  
Blogger ghchua said...

Hi Everlearning,

Unfortunately, the company will not make any rectifications for you. They will accept whatever rights shares application that you have keyed in and consider the leftover as expired rights entitlements.

For your excess rights application, it will depend on the subscription rate. If more investors take up their rights shares, there won't be much excess rights shares left and therefore, you might not get all your excess rights shares filled and the remaining monies will be credited back to you.

11:39 PM  
Blogger Everlearning said...

Hi ghchua,

Supposedly, I was given 500 rights shares but I keyed wrongly and paid for 5000 rights shares. As you shared, the company would still grant me the 500 rights shares, then what happened to the amount of money I paid for 4,500 shares that I was not entitled to?

I hope I did not confuse you but what must I do now to correct my blunder? Thanks!

12:03 AM  
Blogger ghchua said...

Hi Everlearning,

Your monies for 4,500 rights shares that you are not entitled to will be refunded to you after the rights issue closes. I assume that you didn't key in any excess rights application in this case and only apply for 5,000 rights shares.

To correct your mistake, what you can do is to go to the ATM and make another application as follows:

Rights accepted: 0
Excess rights applied: 4500

1:19 AM  
Blogger Everlearning said...

Hi ghchua,

Thanks! You have always been a great help in my equity investments journey.

It looks like it is a norm now for companies to delist from sgx. Retail investors have no choice but complied to what they have set to do. Eastern Holdings and K1 Ventures are the earliest in my portfolio. If I have not averaged down before their announcements were made, I would have lost a portion of my capital.

Well, it is always good to have a cyber-trusted-friend like you who always answered queries no matter how insignificant it may seem to be.

7:13 PM  
Blogger ghchua said...

Hi Everlearning,

You are most welcome! Hope that you have enjoyed your investment journey so far. :)

7:33 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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