f

Thursday, June 30, 2016

My Investment Portfolio (June 2016)

Brexit. The only word to describe market activities for this month. The volatile day to day movements presented opportunities for traders and investors alike. Whether its Brexit correction, post-Brexit rally etc, markets had been irrational at times. As long term investors, we should instead focus on the fundamentals of the companies that we are investing in, rather than being affected by short term market noises. Surprisingly, despite a volatile month, STI ended higher than last month at 2840 points. 

For this month, I have attended the following AGMs/EGMs/briefings - Natural Cool, General Magnetics, Cheung Woh, Transit-Mixed Concrete, Noble Group, Ascendas India Trust and Imperium Crown.

For my top 30 holdings, Best World continues its good run on news that its direct selling license in China had been secured. Isetan returned to the list after announcing that it will be selling its property at 112 Killiney Road. CapitaLand is also back into list after I accumulated the stock this month on share price weakness.

I have bought the following companies from the market this month - Bukit Sembawang Estates, BBR, CapitaLand, Chuan Hup, Hong Fok, iFAST, Kencana, Keppel Corp, Koh Brothers, LTC Corp, Mandarin Oriental, Overseas Education, Pan Hong, S i2i, Sing Holdings, SembCorp Industries, S'pore Shipping, UOL, Wing Tai and Yeo Hiap Seng. No sell trade was done.

I have participated in the following scrip dividend schemes this month - Aspial, AusNet Services, China Everbright, DBS, Maxi-Cash, OCBC, Raffles Medical, Tuan Sing, UIC, United Overseas Australia, UOB Kay Hian and UOL.

I have also accepted the following voluntary delisting/cash offers this month - CM Pacific, NOL and Select Group. My stake in Lantrovision was also being acquired via scheme of arrangement.

Next month will be another AGM season as most companies having financial year ending 31 March 2016 will be holding their AGMs. As usual, I will be attending some of these AGMs to get updates on the performance of these companies. I will also be conserving some cash to participate in Noble Group rights issue.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 June 2016)

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

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

Top Holdings (HK$ Denominated shares)
1. Fortune REIT
2. Shangri-La Asia

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. Dongshan Group Ltd (formerly known as 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. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
11. FerroChina - Under Liquidation
12. FirstLink Investments
13. NEL Group
14. Jets Technics
15. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
16. Hongwei Technologies Limited (In Provisional Liquidation)
17. FDS Networks Group
18. Aussino Group - In liquidation - Creditors' voluntary winding up
19. China Oilfield Technology
20. China Milk Products Group - Under Liquidation

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

Labels:

18 Comments:

Blogger Everlearning said...

Hi ghcua,

When we are brought into an unknown circumstances in life: be it financial or health; we tend to be fearful. Oftentimes, this came as a wake-up call that led us to appreciate what we already had than had not in lives.

These eight years of investing in the local equity market had been quite personal, experiential and at times, lonesome. Nonetheless, it had provided a passive cum sustainable income through delistings and dividends for me which I am very thankful.

I am always amazed at your fervour and zeal when I read your monthly blog. You have shown your unwavering spirit in investing at all times. I don't have this resilient and have stopped investing further for quite sometime. Maybe, I am not a seasoned investor after all.









12:53 AM  
Blogger Arthur Wang said...

Hi Everlearning, agreed with you. ghchua is really a very steady investor. The way I see it, he is totally immune with any financial crises news. Thumb up for you ghchua.

7:30 AM  
Blogger ghchua said...

Hi Everlearning and Arthur,

Thanks for your comments. Yes, investing do have its ups and down but the most important thing is to ride through all these cycles. This is because I am investing for long term and therefore should not be concerned with short term market noises. Crisis or not, life goes on and my investment process will take care of it.

I guess investing can be boring for some, and exciting for others. For me, I like to take the middle path approach. Try not to make it so exciting such that you would want to trade everyday but also try to make it less boring so that you can enjoy the process. I think that is the most important part. If you find it boring, you tend to be sidetracked after sometime or gave it up altogether. I kept myself busy by attending AGMs, sharing with fellow investors and also reading up on stuff related to investment. I also tend to invest in more companies than most investors out there as this gave me the chance to learn more about those companies. It would be boring just following a few stocks everyday as there will not be any fresh stuff to keep you interested everyday.

I wish both of you all the best in your investment and many more returns to come.

2:20 AM  
Blogger Markus said...

Hi GH Chua,
I am Mark, and was a young reckless investor few years ago. Bought many penny stocks and biggest share I bought was golden agri.. Lost more than half of what I had invested which was about 20k losses, when it dropped I didnt sell as I had the mindset that it would bounce back. Untill it dropped to the value that was less than half of what I originally bought. In between I also bought few thousands worth of penny stocks. And everything chrashed as I did not monitor.

Now I am left with shitty penny stocks which are worthless.. The question is should I hold it? Or pump more money to increase the share value and hope for the economy to recover.

The shares I am holding dont seem worth any value to sell. Guess I am burnt badly.
Lereno Bio-Chem 2000, worth 50sgd
OCBC Bank 307 worth 2667
Singapore E DeV 1700 worth 52
Sino cloud 340,000 worth 680
Top Global 3000 worth 600

Ps: bought all these shares in year 2013 or 2014 and had no experience.

The biggest burn was golden agri dropping more than half and when teledata got de listed.

:(

Do you think the economy can recover or I should dump all the pennies?

Thanks

8:36 AM  
Blogger Leow said...

Dear ghchua, I have been a long time reader of your blog. I think yourself, and another investor SG thumbtack investor are 2 very successful investors that I follow.
I noticed you have added BBR shares in June, can I ask if you got this idea from his detailed BBR analysis post? If not then what are your reasons for investing in BBR too?
Both of u also have held quite a bit of metro holdings shares for quite sometime. I noticed you added more metro holdings recently, can I ask what price you got it at? And do u think it will rise further after the huge rise already?
Thanks

6:17 PM  
Blogger ghchua said...

Hi Markus,

Looking at your list, I could only comment on OCBC, SinoCloud and Top Global as I don't hold the other stocks in your list.

On OCBC, I think you can hold onto the stock as it is a blue chip stock with quite a decent dividend yield. And it is also growing slowly via acquisitions in Hong Kong also its private banking business.

On SinoCloud, it had been a very disappointing counter for me and frankly speaking, I don't know what to do with it since its share price had already gone so low. Basically, it is because they have issued so many shares throughout the past few years that I have lost count of it. Plus, they have not been successful in their acquisitions as reflected in the impairments of their associate, China Satellite Mobile Communications Group. Their latest bet is Internet Data Centre in PRC. I hope it turns out well. If not, I think I can totally write off my small investment in this company.

On Top Global, this company is actually profitable but the margins of their S'pore development projects had been low and slow moving. They have bet big on Indonesia and hopefully it will turn out well. But based on the company's track record, I am not so optimistic. Again, its share price had gone down a lot and even more after 100:1 share consolidation and I could only hold onto it. Too low to sell now.

Hope the above helps.

10:03 PM  
Blogger ghchua said...

Hi Leow,

Thanks for being a loyal reader of my blog. I really appreciate it.

On BBR, I have been holding the stock for quite sometime and yes, I have added some in June. My view on the stock is quite similar to SG thumbtack investor as the market had been too pessimistic on the stock. Their property development projects (i.e. LakeLife EC and The Wisteria+Wisteria Mall) should do well. But unlike SG thumbtack investor, I didn't bet big on BBR as I am concerned that they might incur more losses on their General Construction arm. Also, property development profits are one-off in nature and the company will still have to take on development risk to bid for new land to take on new projects in order to continue to realize development gains. The fact is still that they have not done too well in their core construction business.

On Metro, the recent addition in April this year was an opportunistic one as there was mis-pricing in the unit share market. I got the shares at around 55cts. As I've said, it was due to mis-pricing rather than anything else. Otherwise, I have not added onto my position in Metro significantly and my bulk purchases were mainly in 2013 and earlier. Though Metro had done well, they were mostly due to their earlier investments and they have divested those with decent gains. Going forward, though Metro will still earn quite a decent amount from their malls and investment properties, it will be tough for them to re-produce the kind of results we have seen for the past two years. With property slowdown in S'pore, I don't think that they will do well. Also, their investments in UK is still in early stage and it is hard to see whether they will do well in it. For China, most of their development profits had been recognized.

For retail, it had been barely profitable for Metro throughout the years and seems that it will remain so.

Having said that, Metro is in a good position because it has a decent balance sheet and can afford to wait for opportunities while collecting recurring income from their investment properties.

Hope that the above helps.

10:37 PM  
Blogger Sweet Retirement said...

Dear Mr Chua,

I enjoy reading your posts and have added a link on my website.

I wonder if you can add my website to your Friend page on your website?

Best Regards
My Sweet Retirement
http://mysweetretirement.com

3:26 AM  
Blogger SG ThumbTack Investor said...

"Hi Leow,

Thanks for being a loyal reader of my blog. I really appreciate it.

On BBR, I have been holding the stock for quite sometime and yes, I have added some in June. My view on the stock is quite similar to SG thumbtack investor as the market had been too pessimistic on the stock. Their property development projects (i.e. LakeLife EC and The Wisteria+Wisteria Mall) should do well. But unlike SG thumbtack investor, I didn't bet big on BBR as I am concerned that they might incur more losses on their General Construction arm. Also, property development profits are one-off in nature and the company will still have to take on development risk to bid for new land to take on new projects in order to continue to realize development gains. The fact is still that they have not done too well in their core construction business.

On Metro, the recent addition in April this year was an opportunistic one as there was mis-pricing in the unit share market. I got the shares at around 55cts. As I've said, it was due to mis-pricing rather than anything else. Otherwise, I have not added onto my position in Metro significantly and my bulk purchases were mainly in 2013 and earlier. Though Metro had done well, they were mostly due to their earlier investments and they have divested those with decent gains. Going forward, though Metro will still earn quite a decent amount from their malls and investment properties, it will be tough for them to re-produce the kind of results we have seen for the past two years. With property slowdown in S'pore, I don't think that they will do well. Also, their investments in UK is still in early stage and it is hard to see whether they will do well in it. For China, most of their development profits had been recognized.

For retail, it had been barely profitable for Metro throughout the years and seems that it will remain so.

Having said that, Metro is in a good position because it has a decent balance sheet and can afford to wait for opportunities while collecting recurring income from their investment properties.

Hope that the above helps."

Hi ghchua,
I just happened to see this comment.
your comments above regarding BBR and Metro Holdings echo exactly my sentiments. I couldn't give a better summary of my current analysis.
It's impressive how you can come to these conclusions, but in your case, you have to monitor so many more companies than myself.
i'm up to my neck with just 9-10 companies.

1 quick question:
How do you profit from buying Metro via the unit share market?
Isn't it <100 shares, thus you'd be incurring disproportionately high transactional costs? Unless you're able to get several of these in a single day and amalgamated the orders together. I always believed the unit share market is more for adding/selling odd lots only.

Cheers
SG Thumbtack Investor

10:04 AM  
Blogger ghchua said...

Hi SG Thumbtack Investor,

Yes. One must take brokerage costs into consideration when transacting in the unit share market. Which is why I bought at a good margin of safety and taking into consideration the brokerage charge of $10, it is still worth it. In that particular Metro unit share transaction, I bought 96 shares at 55cts apiece and taking the brokerage into account, the overall cost is still around 65cts per share, much lower than what the market is transacting. I bought the 96 shares straight from the seller, so there is no hassle of transacting several trades on a single day.

For the unit share market, I don't like to amalgamate as you might not be able to get a decent number of shares on a single day at a good price to offset the brokerage charge. What I will do is to submit a "All or None" order, either you get a decent number of shares at a good price or none at all. I don't try to queue in the unit share market too as one might get hit with a small number of shares from sellers and it is not cost effective to pay $10 brokerage for a small number of shares.

Hope that the above clarifies.

10:58 PM  
Blogger SG ThumbTack Investor said...

Hi ghchua

Thanks for clarifying.
It does mean though, that you'd have to continuously try to buy small amounts via the unit share market right? Otherwise when you are trying to sell, you'd have to sell the odd lots via the unit share market and in the process, incur more brokerage fees.
Of course, for long term holdings, I see how it makes sense to accumulate small amounts with a wide MOS whenever the opportunity arises.

SG Thumbtack Investor

3:38 AM  
Blogger ghchua said...

Hi SG Thumbtack Investor,

It is up to you how you wish to make use of the unit share market. You can also sell the same stock in the main market and unit share market during the same day and your trade will be amalgamated to save on brokerage charges. Therefore, there is no need to accumulate continuously in the unit share market if you do not wish to.

For me personally, I will transact in the unit share market when there is a price difference to take advantage of the lower share price. Of course, some people might not be comfortable in holding unit shares as there is lower liquidity and bigger bid-offer price spread. But do remember when there is a general offer for your shares, it doesn't matter if you are holding unit shares or in 100s. All your shares will be offered at the same offer price. Also, when there is dividend being declared, all your shares will be entitled to the same amount being declared.

5:39 AM  
Blogger SG ThumbTack Investor said...

Hi ghchua

Thanks for your detailed explanation.

TTI

7:45 AM  
Blogger ghchua said...

Hi Sunny,

Tuan Sing does look undervalued at current price but their commercial assets in S'pore might have weakness when they came on-stream due to over-supply in that sector. Therefore, I think on the short term, its share price might not perform. Also, its dividend yield is low which is another minus for the company. However, I do like its hotels and its assets.

5:53 AM  
Blogger Sunny said...

ya, dont know why this TS has unwillingly payed out divident for so many years. Hope Mr Fragrance can do something about it and i think his 1st entry price is at about current level.

Anyway, do u have anything in mind that u could accumulate given a chance...

8:38 PM  
Blogger ghchua said...

Hi Sunny,

I think they need quite a bit of money as construction of Robinson Towers is still ongoing. Of course, I am disappointed with the delay and I hope that when it is completed, the oversupply situation will not get worse. Therefore, I think they need to conserve a bit of cash.

I don't think I can recommend any stocks for you as I do not know your investment horizon, risk appetite etc. However, there are some stocks which I had been accumulating and you could refer to my monthly portfolio updates for some clues. :)

9:53 PM  
Blogger Yvonne said...

Hi ghchua,

I just chance upon your blog and I am an amateur in investing.

I am looking into putting in money for the stock that you currently own as well, Hor Kew.

Do you have any advice for me to analyse their earnings/financial position/dividends?

Hopefully you can take the time out to email me or reply my comment.

Thanks!

8:56 AM  
Blogger ghchua said...

Hi Yvonne,

I bought Hor Kew mainly because it is trading way below NTA. As for their earnings and business, I don't think they can recover so fast as the construction and property development landscape is still challenging. They have done well in precast and prefab and I think that will be their focus going forward. I believe with time and cost cutting, Hor Kew will recover and the market should rerate this stock when it begins to show earnings going forward. I hope that they can be profitable for FY16 and their half year results this year do show that they are heading towards that direction.

8:11 PM  

Post a Comment

<< Home

Name:

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!

Powered by Blogger