Wednesday, July 31, 2013

My Investment Portfolio (July 2013)

STI recovered to 3221 points by the end of July 2013. It was a decent month for investors as markets are more confident of the US recovery story. Also, back in S'pore, the numbers for economic data are decent and that supported the market as well.

For this month, I have attended the following AGMs/EGMs/briefings - Far East Orchard, MapleTree Logistics Trust, Metro Holdings, Global Logistic Properties, MapleTree Industrial Trust, SIA Engineering, Azeus, MapleTree Commercial Trust, Bukit Sembawang Estates, Latitude Tree, SATS, Boustead, Valuetronics, Eastern Holdings, Pan Pacific Hotels Group, Fischer Tech, GP Batteries and GP Industries.

For my top 30 holdings, the major mover had been Old Chang Kee. There had been a rumour of a buy-out and that had resulted in a positive price movement during the month. Unfortunately on 1 Aug 2013, the company had announced that the transaction will not proceed. F&N dropped a few places because it had went ex-distribution of $3.28 per share. My top holding, Viz Branz is currently subjected to a revised takeover offer price of 81.5cts per share. SGX also did well as it announced its full-year results with increased final dividend payout. Noble Group dropped out of the list after poor performance last month for commodities related stocks.

I have bought the following companies from the market this month - Biosensors, Far East H Trust, Hong Fok, Jason Marine, LHT, Lum Chang, Multichem, New Toyo, Penguin, San Teh, SHC Asia, Sin Ghee Huat and Willas-Array. There is no sale done this month.

I have accepted the following voluntary delisting/cash offers this month - Tsit Wing and Pan Pacific Hotels Group. I have also participated in the following scrip dividend schemes - Aspial, Noble Group and SP AusNet.

I have subscribed to the following rights issue - Global Investments.

August 2013 is expected to be a quiet month for AGMs. However, there will be some dividend payout for companies holding their AGMs last month and I will seek to re-invest those proceeds.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 July 2013)

Top 30 Holdings (Sing$ Denominated shares)
1. Viz Branz
2. Bukit Sembawang Estates
3. Jardine C&C
4. Sarin Technologies
5. SGX
6. Guthrie GTS
7. Old Chang Kee
8. F&N
9. Aspial
10. A-REIT
11. Sing Investment & Finance
12. SembCorp Marine
13. Metro Holdings
14. Bonvests
15. OSIM International
16. Far East Orchard
17. CapitaMall Trust
18. Haw Par
19. Hotel Grand Central
20. UIS
21. The Hour Glass
22. United Engineers
23. Hong Leong Finance
24. MTQ Corp
25. Low Keng Huat
26. Hiap Hoe
27. Hotel Royal
28. Keppel Land
29. Singapura Finance
30. First REIT

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. General Magnetics
5. Fastech Synergy
6. Beauty China- Under Liquidation
7. Memory Devices
8. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
9. FM Holdings
10. Japan Land - In liquidation - Members' voluntary winding up
11. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
12. FerroChina - Under Liquidation
13. FirstLink Investments
14. NEL Group

My Unit Trust Portfolio:



Blogger Gin said...

Hi ghchua,

I noted that you attended the Latitude Tree EGM. May I ask your opinion of the deal? I personally find the majority shareholder taking bulk of the deal and leaving behind little for minority shareholders.

The ID who chaired the meeting did not convince me at all about his points on reinvesting the cash. Why not return it all to shareholders? It seems to me he is just interested in maintaining his directorship and fees.


7:18 PM  
Anonymous Anonymous said...

hi ghchua,

may I ask which brokerage platform did u use for these purchases?

I dunno which one is best to adopt and seekyr view.

7:28 PM  
Blogger ghchua said...

Hi Gin,

I was one of those who spoke during the EGM. I think I was the first speaker to question the board.

The deal in my view is not great for minorities because we cannot get the bite of the deal. The selective capital reduction at a price higher than the market is only for the majority shareholder to get out. It leaves an empty shell for us at the mercy of the board and see what business they can find to inject into the company.

They need to maintain some cash in order to do a RTO. However, I guess the cash will not be enough for a major deal and they will have to issue more shares to complete the deal and dilute minorities further.

9:24 PM  
Blogger ghchua said...

Hi jiaxu,

I use various platforms but you should use one that you find comfortable, and not one that I am using. For my board lot purchases, I am currently using DBS Vickers cash upfront account. For unit share purchases, I am currently using POEMS.

9:28 PM  
Blogger Guru said...

Hello Sir,

May I ask if Ho Bee is in your portfolio?


1:11 AM  
Anonymous Anonymous said...

hi ghchua, thanks for the reply. I dun quite understand 'unit share purchase'..r u referring to odd-lot? if so, does it mean that odd-lot purchase (and kept with CDP) through poems is the cheapest?

and may I ask for the same question for sales? is it also the same manner?

7:55 AM  
Blogger ghchua said...

Hi Guru,

Yeap. I am holding onto Ho Bee in my portfolio.

9:43 PM  
Blogger ghchua said...

Hi jiaxu,

Yes. I am referring to odd lot. POEMS charges the cheapest for odd lot because their minimum commision is $10. Yes, the charges are the same for buy and sell.

You can refer to the FAQs below:

9:47 PM  
Blogger Gin said...

Thanks. I do recall your questions. There is value in the RTO but the time constraint for a cash company will make the search for a good acquisition challenging.

11:49 PM  
Blogger ghchua said...

Hi Gin,

I guess Mr Yek might have some idea what business he wanted to inject to the shell. Since he holds around 5% of the company, I don't think he would want to waste the shell. Let's wait and see how it goes.

11:57 PM  
Blogger faith said...

Dear GH Chua,

May I know if Thai Beverage is in your portfolio? I learnt that this is a promising stock but couldn't locate it in your portfolio. May i hear your views on this stock, please? How about Wilmar? I have been holding to the stock but price has not been good, is it worth keeping? Thank you!


11:35 PM  
Anonymous Anonymous said...

hi ghchua,

how do u have such a strong investment considering u were an engineering/it graduate..

did/are u actually studied cfa or some further finance degree?

6:40 AM  
Blogger ghchua said...

Hi faith,

I have Thai Beverage in my portfolio but it is not in my top 30 holdings, which is why you couldn't find it in the list. I guess Thai Beverage do have potential due to its synergy with F&N's F&B business. The question is how they are going to work with F&N to expand their own business or even inject some assets from F&N into it.

I think Wilmar is not doing well mainly because markets had been disappointed with its results. I guess the problem with Wilmar is that the margin of their business is low. If volume is down due to China slowdown, then it will not deliver good profits. I guess they would have to expand their downstream consumer business to a higher scale in order to have bigger margin and higher profitability.

2:30 AM  
Blogger ghchua said...

Hi jiaxu,

No. I didn't do any postgraduate degree in finance or anything related to business.

I think I have an interest in capital markets and finance during my earlier days in school and also after graduation.

One can pick up stuff from experience and also investing on your own and learn from others. I guess this is equally important or even more important than having a degree.

2:30 AM  
Blogger Everlearning said...

Hi ghchua,

Having spent 5 years in the stock market, I am still surviving. I have told myself should most of my counters go delisted, I quit! But, somehow I will have to stay a little longer because my shipping counters have not revived.

At times, I think I know a little, then, I find myself doubting what I know. Any way, I am glad that I am investing myself, and more so, I have found a cyber-consultant and that's you.

Truly, you are an impartial investor and your investment acumen I would like to emulate.
Your investment insights are much appreciated.

6:49 PM  
Blogger ghchua said...

Hi Everlearning,

Thanks for your compliments. Indeed, investing is a tough journey for me, let alone being a full-time investor.

For me, I did have a lot of hard knocks during my initial years embarking on this journey. Nevertheless, I strive on and tried to learn as much as possible from my mistakes. It turned out that I could do it pretty ok which is why I have left Engineering/IT.

Look at the list of unlisted companies in my portfolio that I have presented every month in my updates. These are my mistakes which served to remind me every now and then not to be complacent.

I hope that your shipping counters will recover one day and continue with your learning spirit. A never-say-die investor will come back again and be a better investor.

Don't give up on your investing journey.

1:17 AM  
Blogger simplesam said...

I'd be interested in hearing the rationale / investment thesis behind your key holdings. Also, would you mind adding my blog (www.argutori.com) to your blog roll? You can find some of my investment ideas on their and the relevant reasoning.



4:00 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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