Friday, February 28, 2014

My Investment Portfolio (February 2014)

STI ended the month at 3110 points. It started the month on a weak note and it actually fell below 3000 points and hit a 52 week low of 2960 points during the month. However, it recovered towards the end of the month to close higher. Companies had been releasing their full-year results towards the end of the month and there are some buying interest as things are not as bad as expected. Also, most companies are still paying dividends and that had attracted some investors back into the market.

For this month, I have attended the following AGMs/EGMs/briefings - Singapore Windsor, Del Monte, Transview and F&N.

For my top 30 holdings, there had been a lot of changes, as some had dropped out while others had came in. This is normal during result reporting season as investors reacted to news. Two new entries in my list for the first time are LHT and Hotel Properties. LHT is mainly due to a huge price increase triggered by a small trade while I added more onto Hotel Properties this month. Superbowl is out of my list after I accepted the takeover offer from Hiap Hoe. Other major movers include Hiap Hoe and Hotel Royal. Keppel Land re-entered my list again after I added more into it this month.
I have bought the following companies from the market this month - Auric Pacific, BBR Holdings, CapitaLand, CapitaMalls Asia, ECS, euNetworks Group, Far East Orchard, Hotel Grand Central, Hotel Properties, Hotel Royal, IFS, K1 Ventures, Keppel Land, Kian Ho, Metro, MultiChem, PNE Industries, Popular, Singapore Reinsurance, Straits Trading, Wing Tai and Zagro Asia. There is no sale done this month.

I have accepted the following voluntary delisting/cash offer this month - Superbowl Holdings. I have also converted the following company warrants to shares - Hai Leck and Wee Hur.

Next month, there will not be much company meetings as most are preparing their annual reports to be dispatched before the busy April AGM season. I will be taking some time to review some of those full-year results that I have missed out in February. I will also be participating in some rights issues and seek to re-invest those proceeds from Superbowl back into the market.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 28 February 2014)

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

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:



Blogger JN Ong said...

Hi Mr Chua,

I noticed that you have KXD as one of your unlisted stock. I am also a shareholder in the company and have lost substantial money in this investment. I am left with only a share certificate now. I have never encountered anything like this before when a company delist without returning any money to shareholders. I was told the company is worth nothing. So is this a fraud case? So we, as shareholders, are left with only a piece of worthless paper now? Can you kindly advise? Thank you.

11:19 PM  
Blogger ghchua said...

Hi JN Ong,

I am sorry to hear that you have also invested in KXD but yes, you are right that the company is worth nothing. It is currently under liquidation (as you can see the status in my blog post) due to insolvency.

There are many cases of companies delisting without an exit offer. Many in the list of my unlisted company portfolio are in this category. Since this is your first encounter with a company like this, I hope that it will be your last one.

The story about KXD had been a sad one and the proposed RTO also unsuccessful.

12:15 AM  
Blogger Jay's philosophy: said...

I have a silly question. Unfortunately I have alot of Japanland and receive notice of the liquidation. Is there anything I must do or just wait?

8:14 PM  
Blogger ghchua said...

Hi Jay,

The notice you had received is just a normal annual meeting by the liquidators, not a notice of liquidation. Japan Land is currently under liquidation as you can see from the status of my blog posting of the company under my unlisted company portfolio.

The liquidation process is still not completed yet. Frankly speaking, I am quite puzzled why the liquidation process took so long. It had been around two years since shareholders of Japan Land approved the liquidation of the company. I was at the meeting during that time.

Do look at the agenda of the meeting to see what they are going to present to you. They will normally give you updates on what they have managed to liquidate so far, what they have paid etc.

9:10 PM  
Blogger ghchua said...

As to the question of anything you must do, I guess there is nothing you can do with your Japan Land shares now. It had already been delisted and you just have to wait for the whole liquidation process to be completed and see how much is left to be distributed to shareholders.

9:13 PM  
Blogger Everlearning said...

Hi ghchua,

Thanks for sharing your experiences with such share counters you all encountered in your investment portfolios.

Undoubtedly, it is never a pleasant way for our stock investment to end this way but certainly, if investor has not entered a trade with these companies, he/she will not make a loss. I am just speaking from my own experience.

The only way is to diversfy into various sectors and gradually buying into good companies, not the bogus ones.

I am done with those companies which keep asking me to take up rights issues and not improving the shares' values for investors.
I find that I can no longer believe in them and invest further with my hard-earned money. They are now in my freezer account: my unlisted company portfolio which means no further action required.

5:27 PM  
Blogger ghchua said...

Hi Everlearning,

It is always nice to hear from you.

Yes, just like anything in life, there are good and bad experiences. Stock investment has both also.

The important thing to to learn from experiences. Those stocks in my unlisted portfolio list are unfortunately the bad ones. But they are not really bad companies when I bought them in the first place.

For example, KXD and Japan Land are good operating companies when I bought them. Unfortunately, due to mismanagement, they are currently bad companies. But I always believe that when you invest, you should not be afraid to make mistakes. Therefore, do take the good experiences and bad ones as well as part of your ever learning process.

9:21 PM  
Blogger Chin Ang said...

How does warrants works
I am not sure whether to subscribe for current Hai Leck?
Please share your thoughts

5:55 AM  
Blogger ghchua said...

Hi Chin,

Warrants is like a call option. For company warrants, it gives the holder the right (but not an obligation) to subscribe for its shares at an exercise price before or on expiry date. However, for company warrants, if you don't wish to exercise them and convert to shares, you can sell them in the open market.

Basically, warrants have two main components - i.e. intrinsic value and time value. A warrant might have a exercise price that is higher than the current share price that the company is trading at, but since there is still time before expiry, the market will not price it at zero.

For Hai Leck, you have to see whether you are positive on the prospects of the company before deciding whether to subscribe for the warrants. The warrants had been priced to sell, at only 0.1cts with a 5 year exercise period at an exercise price of 33cts. Just looking at the 5 year time value alone is already worth more than 0.1cts. I will be subscribing for it.

9:48 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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