Friday, January 31, 2014

My Investment Portfolio (January 2014)

STI started the year on a weak note. The expected CNY rally did not happen and STI retreated to around 3027 points. Many factors were cited for this weakness, with the US Fed cutting its stimulus, weak manufacturing data from China, weakness in emerging market currencies etc. At home, property stocks received a beating as investors are worried about slow moving sales in the local residential market after various government measures to cool it.

For this month, I have attended the following AGMs/EGMs/briefings - FDS Networks, Hiap Hoe, Straits Trading, Westminster Travel, Frasers Centrepoint Trust, Frasers Commercial Trust, Casa Holdings, Chew's Group, China Fishery, PNE Industries and Nam Lee.

For my top 30 holdings, the main mover was VICOM. It moved up a few places as analysts upgraded the stock. MTQ Corp was the other main mover as I subscribed to its scrip dividend scheme.

I have bought the following companies from the market this month - BBR Holdings, China Sunsine, Fung Choi, Hupsteel, Lantrovision, Popular, Qian Hu, Singapore Kitchen Equipment, Sinarmas and Tat Seng. I have also reduced my stake in Rowsley warrants and Viking.

I have accepted the following voluntary delisting/cash offer this month - Internet Technology Group. I have also participated in the following scrip dividend scheme - MTQ Corp.

Next month, most companies with financial year ending December 2013 will be reporting their full-year results. I will be looking closely at some of them. Also, UIS is expected to pay out their first distribution after delisting. I will be looking to re-invest those proceeds prudently back into the market.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 January 2014)

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

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 Australia Stock Portfolio
1. GPS Alliance Holdings Limited

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
15. KXD Digital Entertainment - In liquidation - Compulsory winding up (Insolvency)
16. Shanghai Asia Holdings - In liquidation - Members' voluntary winding up
17. Jets Technics
18. UIS -  In liquidation - Members' voluntary winding up
19. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
20. Hongwei Technologies Limited (In Provisional Liquidation)
21. FDS Networks Group
22. Aussino Group

My Unit Trust Portfolio:


Wednesday, January 01, 2014

Investment Strategy for 2014

2014 is expected to be a good year for the markets, at least according to the analysts. Corporate profits are expected to go up, and markets are cheering since the tapering had started slowly and not as bad as expected. Economics are humming along, which should be good for equities.

Personally, I think one should be prepared for volatility in the markets for the year ahead. Your portfolio must be able to withstand market correction and also take opportunities to re-invest back into the markets when valuation is attractive. Remember to protect your downside first and the upside will take care of itself. My strategy for investing in 2014 are:

1. Look for deep value stocks. As markets recover, one might be tempted to chase for high growth stocks since the stories will be rosy. Growth is also expected to be priced in for these stocks and one must be prepared to pay for high valuations to buy into their expected high growth. Personally, I have become more defensive when markets go higher. I tend to invest into more value stocks than growth when markets are high. This should be one of the must have strategy if you want to be defensive.

2. Look beyond the blue chips and mid cap space. One must be prepared to invest against the crowd when markets are high. Therefore, do spend sometime looking at stocks which had been ignored by the markets for quite sometime. Low volume and lack of news flow are typical characteristics of small cap value stocks. Also, be prepared to look beyond the usual blue chips, mid cap stocks in order to search for gems to invest in.

3. Keep a lookout for M&A deals. Similar to last year, some companies might decide to throw in the towel and delist from SGX or being acquired by bigger companies. Keep a lookout for these category of stocks as the return is quite decent if the company is being delisted at a fair valuation. A few of the s-chips had been delisted from SGX last year and this category of stocks might be another place for idea generation for delisting in 2014.

4. Do not be aggressive, but be prepared to re-invest your proceeds slowly in good ideas. A lot of times, we tend to be aggressive and invest all in one go when markets are going up. Though my strategy is to stay almost 100% invested at all times with minimal cash holdings, it doesn't mean that I have to invest all my spare cash in one go. I normally try to spread my investments slowly in a few stocks at any one time, rather than trying to invest all in one go for one stock. In this way, you can stay invested and also spread your time and stock concentration risk.

5. Build up my stock knowledge "database". What this means is to read widely and build up your individual stock knowledge. You might not be buying or adding onto the stock currently but it doesn't mean that you do not need to know anything about it. Stock ideas can come from your own stock "database" too and you need to also exchange ideas with fellow investors. Therefore, when there is no AGMs/EGMs etc going on, instead of staring at the stock price screen, one should spare sometime to do some catchup readings on companies.

6. Reflect on my portfolio, review strategies. Sometimes, your portfolio might not perform as what you have expected and it might be because of asset allocation mistakes, wrong company selection etc. Try to review and refresh your portfolio management strategies and reflect on your mistakes. Do read some books on portfolio management techniques and also see how it can be implemented on your current portfolio to make it better.

7. Do what I have been doing. I will still be subscribing for rights issues, taking up scrip dividends, attending meetings etc. These are the regulars that a full-time investor like me had been doing and I will continue with them in 2014.

That is all I have for this posting. I wish all of you more happy returns in 2014!



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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