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Friday, January 30, 2015

My Investment Portfolio (January 2015)

STI ended started the first month of the year up to close at 3391 points, though it ended a bit weaker during the last trading day of the month. Various concerns were present in the market. 1. The Swiss taking the cap off their currency, causing Swiss franc to strengthen significantly. 2. ECB increasing the money supply aka QE. 3. Greek debt issue had been on the headline again. 4. US Fed latest hawkish stance on rates, which means interest rate is going to go up soon.

For this month, I have attended the following AGMs/EGMs/briefings - Yoma, OUE, OUE H Trust, Frasers Commercial Trust, BRC Asia, Pacific Andes, PNE Industries, Casa Holdings and Frasers Centrepoint Limited.

For my top 30 holdings, there were quite a few changes. Popular and Keppel Land appeared on the list after both companies announced takeover offers which triggered their share price upwards. Keppel T&T returned to the list after it declared a special dividend when full-year result was announced, due to the proceeds from listing of Keppel DC REIT. ComfortDelgro was another main mover after LTA announced that it will purchase the assets of public transport operators when it moved to the bidding model. The Hour Glass also performed well after Swiss franc strengthened, which might increase its inventory value. The two REITs in the list also did well after they announced their results. Some undervalued property counters like Hiap Hoe, Bonvests etc also reacted to Keppel Corp's takeover offer for Keppel Land as investors speculated on the next takeover target.

I have bought the following companies from the market this month - Amara, AP Oil, BBR, Best World, Casa, Chew's Group, Chip Eng Seng, First Sponsor, Hong Leong Finance, Hwa Hong, Keppel Corp, Keppel T&T, LTC Corp, Nam Lee and SembCorp Industries. I have reduced my stake in E2-Capital, Green Build and Keppel REIT to partly fund some of these purchases.

I have accepted the following voluntary delisting/cash offer this month - euNetworks. I have also participated in the following rights issue - Swiber.

Next month, most companies with financial year ending 31 December 2014 will be announcing their full year results. I will allocate some time to follow those financial announcements.
 
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 January 2015)

Top 30 Holdings (Sing$ Denominated shares)
1. United Engineers
2. Sarine Technologies
3. Metro Holdings
4. Jardine C&C
5. Singapura Finance 
6. Old Chang Kee
7. Haw Par
8. Bukit Sembawang Estates
9. Hong Fok
10. Bonvests    
11. SGX
12. Hotel Properties  
13. Hotel Grand Central
14. Hong Leong Finance
15. Keppel Land
16. A-REIT
17. Hotel Royal
18. Hiap Hoe
19. The Hour Glass  
20. Straits Trading 
21. ComfortDelgro   
22. GK Goh
23. Keppel T&T
24. Sing Investment & Finance
25. VICOM 
26. Isetan
27. CapitaMall Trust
28. Far East Orchard
29. Popular
30. UOL

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Hong Kong Land 
3. Dairy Farm
4. Mandarin Oriental
5. Jardine Matheson

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
4. A-REIT
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. Jets Technics
17. UIS - In liquidation - Members' voluntary winding up
18. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
19. Hongwei Technologies Limited (In Provisional Liquidation)
20. FDS Networks Group
21. Aussino Group
22. Sunray Holdings

My Unit Trust Portfolio:
http://www.fundsupermart.com/main/community/Portfolio_View.svdo?id=P199

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17 Comments:

Blogger Sunny said...

Dear Mr Goh


Wish you can enlight me about BRC Asia, shall I keep it for divident or take profit if the price goes up again? What is your take about this company in coming years regarding profit, divident and etc

tks

Sunny

6:38 AM  
Blogger ghchua said...

Hi Sunny,

I think there are jobs in the construction industry but margins had been squeezed due to more new players and also volatile steel prices. But BRC Asia should do ok going forward as they are not only trading steel products but also provide value-added products like wire mesh etc. Their machines to produce those value-added products are also expensive and that will be a barrier for small players to come in and complete with them.

They have done well so far despite volatile steel prices for the past few years. I guess dividend should be alright going forward but don't expect special dividend every year.

8:13 PM  
Blogger oradba168 said...

Hi,

You have Singapura Finance in your portfolio, any comments about this counter ?

5:43 AM  
Blogger Sanye ◎ 三页 said...

Hi shifu,

Will you accept the cash offer from popular? Any chance that this plan to take it private be averted?

Gong Xi Fa Cai.

4:48 PM  
Blogger ghchua said...

Hi oradba168,

Singapura Finance is a slow and steady counter which I like to keep it in my portfolio. Basically, there is nothing exciting about the company as its business is in S'pore. With interest rate going up, they should benefit from higher net interest margin and therefore profit should be sustainable.

One thing that I like about the company is that it is conservative when it comes to issuing loans. Their bad loans is very low (in fact, they only do collective impairment of the whole loan portfolio, no individual impairment at all).

I think if the government can relax the property cooling measures, they will be able to get more housing loans and therefore will benefit them more going forward.

They also own some shophouses which had been used as for their branch operations and those assets are only valued at cost in their books.

I am not expecting a lot from this counter, just the yearly dividend payout while waiting for value to be unlocked.

7:55 PM  
Blogger ghchua said...

Hi Sanye,

I am still holding my Popular shares as there is no urgency to accept the offer at this moment. Offer is conditional on the offeror getting 90% or more shares and even if you accept the offer now, you won't get the money until the offer turns unconditional.

I will wait for the IFA report to be out first before deciding what to do with it.

7:58 PM  
Blogger Denise King said...

Hi Mr Chua,

Chanced upon your blog recently. May I check with you which online stock broking site/s have the lowest commission?

Also, probably a bit rude, are you already a full time private equity investor?

Cheers,
DK

9:10 PM  
Blogger Denise King said...

Hi Mr Chua,

Saw your earlier post after I sent in my earlier comment. Congrats to you on retiring from the rat race.

I started managing my investment full time several years back. However, mine were mostly gains from property investment. Although I managed to have a positive return after so many years (I invested in stock and shares when I was 21), the IRR was very lousy. Hence I aim to learn from people like you. Regards,DK

9:31 PM  
Blogger ghchua said...

Hi DK,

I guess I am not going for the lowest brokerage, but rather for a broker whereby there is reliability and also offers quite decent brokerage. I also use multiple brokers so that if one platform is down, I can use another one.

Standard Chartered online platform offers the lowest brokerage currently but theirs is a nominees account and not CDP settlement.

I also like to use cash upfront account as they offer lower minimum brokerage since there is no credit risk for them. Brokers like DBS Vickers cash upfront offers minimum of $18.

11:24 PM  
Blogger ghchua said...

Hi DK,

I guess for stock investment, one needs to really work hard and gain from mistakes and experience to be a better investor. There is no shortcut to this and therefore it is always a learning journey for me.

My decision to do full-time investing is made after being a part-time investor for more than 10 years. Therefore, I do have some idea on what I am going into before doing it full-time.

Being a full-time investor is never easy as I do not have a fixed salary every month and there is no medical benefits or CPF contribution. However, I believe of I put in my heart and effort into it, I will be able to make it happen.

So far, these 3.5 years since I retired from the rat race had been fruitful. I admit that it had been hard sometimes to manage expenses when there is no pay every month, but being a full-time investor is not only looking at IRR, but also looking at how to manage your cash flow every month so that you will be able to pay for your expenses and reserve some funds for re-investment for compounding returns.

11:31 PM  
Blogger Denise King said...

Hi Mr Chua,

Thanks for your response & time. Your reply and sharing is very sincere & geniune. Awesome!

For brokers, I usually have cash in my poems account anyway as I travel frequent and thought would be easier for me to leave the sales monies to offset my purchases. But I doubt poems commission is low. Will open a DBS account then to save some commission.

It is important for you to have a good medical insurance. I have a policy that pays every cents as long as is within the limit.

I am in my late 40s now and for the last couple of weeks, I am working to reorganise my portfolio. By the way, I saw you bought Best World recently, just curious, what did you see in Best World? I am holding some position and planning to average down. Also, have you sold all your Raffles Education? I kindof like their business over Samudera Shipping and planning to sell Samudera and exchange for Raffles Education.

Cheers,
DK

12:49 AM  
Blogger ghchua said...

Hi DK,

For Best World, I guess I am looking at better profits for FY14, as their profit had came off a lot since FY09. I think their strategy for markets like Taiwan,
Philippines, Myanmar and China is now bearing fruit. Their revenue had gone up a lot for FY14 and with new distribution channels, it should be able to grow nicely. I see value as the stock is still trading below its NAV.

For Raffles Education, I did not sold my position in it but I did not add either. Their core business in education is still not doing well and they are only making money from selling properties. I guess you should look at it as a property play rather than an education company. I will need some time to see how to execute their strategy in their property business, especially since they are still building new schools in Malaysia, Australia etc.

8:36 PM  
Blogger Singapore Stock Picker said...

are you ever going to reveal your portfolio dollar size? i do not seem to be able to find it going through your old posts.

3:32 PM  
Blogger ghchua said...

Hi Singapore Stock Picker,

Nope. I didn't reveal my portfolio dollar size from the start of this blog. This blog is to detail my investment activities, strategies and processes. It is also for readers to share with me about investments in general, be it stocks, unit trusts etc.

However, from my portfolio activities every month and what stocks I buy/sell, I think readers will be able to make a smart guess on whether I am doing well, ok or badly.

I think the focus on portfolio size is not fruitful in this learning process. Rather, I would focus on how to better manage my portfolio.

Focus on the process and the result will come automatically.

8:10 PM  
Blogger Sunny said...

Dear Mr Goh

新年快乐,身体健康!大发羊财!!

5:19 AM  
Blogger David said...

Happy New Year ghchua!

4:01 PM  
Blogger ghchua said...

Hi Sunny and David,

Thank you for your CNY greetings! I hereby wishing both of you a Happy CNY year of the Goat and may both of you Huat all the way. :)

9:49 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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