Saturday, August 31, 2013

My Investment Portfolio (August 2013)

STI closed at 3028 points by the end of August 2013. It was a bad month for investors. Markets are worried not only on the volatile currency movements, Fed expected tapering but also US and some of its allies considering military action on Syria. Obviously, with so much bad news, markets had been sold down badly.

For this month, I have attended the following AGMs/EGMs/briefings - China Animal Healthcare, Jubilee, United Engineers, Petra Food, Novo Group, Stamford Tyres, Elite KSB and Freight Links.

For my top 30 holdings, Viz Branz dropped out of the list as I have accepted the takeover offer. United Engineers also dropped out as it went ex-right. Superbowl, GK Goh and Hong Fok are new entries which I had been accumulating for the past few months.

I have bought the following companies from the market this month - Ascendas Hospitality Trust, BBR Holdings, Biosensors, GK Goh, Hanwell, Hotel Properties, Hotel Royal, Hwa Hong, Innotek, Jason Marine, Keppel T&T, L-Jacob, LHT, Low Keng Huat, Metro Holdings, Multi-Chem, OUE, Pollux, Singapura Finance, San Teh, SBS Transit, SHC Asia, Stamford Land, Superbowl, Tat Seng, TTJ, UOB Kay Hian, Vard Holdings, Venture, Yongmao and Zagro Asia. There is no sale done this month.

I have accepted the following voluntary delisting/cash offers this month - China Animal Healthcare, Food Junction and Viz Branz. I have also participated in the following scrip dividend schemes - MapleTree Logistics Trust, MapleTree Industrial Trust, MTQ Corp and Boustead.

I have subscribed to the following rights issues - Sin Heng and WE Holdings.

September 2013 is expected to be another quiet month for AGMs. I will do some catch-up readings on some investment related periodicals. I will also seek to re-invest the remaining proceeds from Viz Branz back into the market and subscribe to United Engineers rights issue.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 August 2013)

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

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:



Anonymous Anonymous said...

mr chua,

may I ask what % of yr liquid assets are in equity now? thks

6:44 AM  
Blogger ghchua said...

Hi jiaxu,

Besides emergency fund, I always strive to invest almost 100% of my available funds into equities.

8:15 PM  
Anonymous Anonymous said...

thks mr chua, may i ask what the % of yr emergency fund (against emergency fund + available funds)?

noted u bought into biosensors which dun pay dividends..why is that?

7:19 AM  
Blogger WTK said...

Hi ghchua

How many months of expenses does you allocate for your emergency fund?



7:44 AM  
Blogger Everlearning said...

Hi ghchua,

Good morning!

I just want to find out from you the investors' perception when they bought in the open-market Asiatic R at the price of 0.095. The mother share is below this price. Is there any gain in getting it?

I am going to take up the entitled rights so that my shareholdings would not suffer the dilution caused by the company issuing the rights and free warrants currently.

There is always something I feel lacking in me and that is to understand the rationale behind each movement the company is taking. That alone oftentimes creates some uneasiness in me.

6:15 PM  
Blogger Minispotter said...

Hi ghchua whats your email or whatsapp , i am looking for HK finance blogger

7:50 PM  
Blogger ghchua said...

Hi jiaxu and Ben,

I don't use % of emergency fund out of available funds to set aside. Rather, I roughly estimate my living expenses for about 6 months and then set aside that sum of money as emergency fund. Therefore, available funds for investment doesn't matter as my living expenses is the one that determine how much to set aside for my emergency fund.

For example, if you estimate that your living expenses for each month is around $1000, then you should at least set aside $6000 as emergency fund.

Biosensors started paying dividend this year. Do take a closer look at the stock. The recent correction is a good opportunity to accumulate the stock.

10:26 PM  
Blogger ghchua said...

Hi Everlearning,

There is a reason why Asiatic R is trading above Asiatic mother share price. This is because the 1 for 1rights issue price is at a discount from the market at 3.5cts per share. Plus, for each rights share subscribed, there are 2 free warrants given at an exercise price of 1.75cts per share.

Taken together, what it means is that it is basically a 3 for 1 rights issue, which 2 of them are warrants given free to those who subscribed for each rights share.

So, we have one mother share Asiatic and Asiatic R is bascially 3 rights, which explains why Asiatic R is trading higher than Asiatic.

10:46 PM  
Blogger ghchua said...

Hi Minispotter,

I am not a HK finance blogger. I think you are coming to the wrong blog.

10:50 PM  
Blogger Everlearning said...

Hi ghchua,

Thanks for your reply.

Let me try to understand from your explanation. If I bought into Asiatic R, I am paying for 1 rights share i.e. $35 and 2 free warrants at $35, the total value of 3 shares is $70.

So, it does make sense to me that by subscribing to what is alloted to me, I tend to gain than to lose.

It seems that people are willing to pay more to buy in the open-market, does that imply that investors have great confidence in the company's business' expansion?

Free or paid warrants have expiry dates. Is there a right time, of course with a right reason to exercise them?

11:29 PM  
Blogger ghchua said...

Hi Everlearning,

I think you have mistaken. You cannot calculate the value of the rights this way.

Let's say the mother share is trading at 5.7cts per share and you have the right to buy the mother share at 3.5cts per share, the value of your rights for the shares part should be 5.7cts-3.5cts=2.2cts. And assuming zero time value, the intrinsic value of the 2 free warrants should be (5.7cts-1.75cts) multiply by 2. Which gives us 7.9cts.

So, in theory, your rights price should be 2.2tcs+7.9cts=10.1cts.

1:16 AM  
Blogger Everlearning said...

Hi ghchua,

Thanks for correcting my calculation error. Today, I learnt something useful and needful when it comes to calculating the rights' value.

It is just in theory, that the value right now is 10.1cts, because the mother share happens to trade at 5.7 cts. It is also not absolute because it could fluctuate depending on the trading price.

I realize I have a lot more to learn. Throughout the years of subscribing rights, I subscribed them for the sake of subscribing.
Plainly speaking, it is just an exercise for me to add more shares to my holdings. Absurd? I think so!

6:35 AM  
Anonymous Anonymous said...

mr chua, thank you for the reply. now I have better understanding of emergency fund.

5:39 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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