Sunday, July 31, 2016

My Investment Portfolio (July 2016)

The Swiber fallout and an underwhelming Japan stimulus were reasons for market weakness towards the end of the month. Otherwise, STI ended the month slightly higher than last month at 2868 points. Stocks in the oil and gas sector were badly sold down as investors begin to assess the damage due to exposure to Swiber. Banks were also under pressure given their lending exposure to the sector.

Unfortunately, I have to admit that I have some exposure to Swiber and some stocks in the oil and gas sector, but those were limited and the damage had been well-controlled in my portfolio. None of the 3 local banks were also in my top 30 holdings as I preferred finance companies.

For this month, I have attended the following AGMs/EGMs/briefings - SMRT, Azeus, CapitaLand Commercial Trust, MapleTree Industrial Trust, Pollux, KSH, MYP, Jason Marine, King Wan, TSH, MTQ and Fischer Tech.

For my top 30 holdings, not much changes except a few movements here and there. Tat Seng and First REIT were back into the list mainly due to share price outperformance. First REIT results were in line and DPU continues to increase. Keppel T&T also announced decent results and detailed plans to set up Data Centre funds. SGX did not fare well as they announced flat full-year profits, and the market disappointed with no dividend increase.

I have bought the following companies from the market this month - AV Jennings, Bund Center, Chuan Hup, Ellipsiz, Far East Orchard, Hong Fok, Hong Leong Finance, Hor Kew, iFAST, IP Softcom, Kencana, Koda, LH, LTC Corp, Mandarin Oriental, Matex, Pacific Century, Pollux, S i2i, UIC, Yeo Hiap Seng and YHI. I have also reduced my stake in Noble R.

I have accepted the following voluntary delisting/cash offers this month - Pteris Global and Pacific Healthcare. I have also subscribed to the following rights issues - Noble and Ezion.

Next month will be another reporting season as companies with financial year ending 31 December 2016 will be reporting their half year results. Also, companies with financial year ending 30 June 2016 will be reporting their full-year results. I will be going through some of these results release. I will also do some catch-up readings on some periodicals, books and magazines related to investment.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 July 2016)

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

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
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:



Blogger STE said...

Wow ! A super portfolio !!

5:32 AM  
Blogger Arthur Wang said...

The stock market Man of Steel. You have done it again. ;-)

6:49 AM  
Blogger Everlearning said...

Hi ghchua,

It is inevitable to have weeds in one's equity portfolios. Nevertheless, a wide diversified portfolio can withstand such a blow. Never put all eggs in one basket when it comes to investments, this truth is undeniable.

Hopefully, we can endure more of this to come because of erroneous business' handling? If not, how would one have ended up liked this? The damage is done and completely unrepairable.

Cheer up! To me too! I don't have Swiber but I do have some outrageous ones.

5:15 PM  
Blogger ghchua said...

Dear all,

Yes. I have my fair share of lousy investments but I think these companies did not become lousy overnight. For example, Swiber was a decent company with good growth potential. But throughout the years, it had been borrowing more and more to finance its growth and with the oil price decrease, it had become a victim of over-expansion.

Therefore, one have to be careful when investing in these high growth companies. When times are good, all seems good. When times are bad, the creditors will pull the plug and you will be in trouble. Nowadays, I seldom invest in growth companies and even if I want to, I would avoid those with high gearing. But you will never know, as a company in a net cash position now might become a heavily debted company few years down the road.

8:15 PM  
Blogger Ken said...

Hi Chua..

can you share with us how much is the commission you had paid evey time for all those shares you had buy for in your portfolio.. the cost for every transcation for buying and selling, the cost paying for custodian fees, is there a platform or online for you to track your profit and your losses that once you sell your shares after deducting the commission, trading fees , misc fees plus dividend received.. the expected or forecast the gain or profit that you will get.

As my personal point of view, is really a huge cost maintaining of buying so many shares.. is good to diverisfy but is also a impt factor of the cost invlove

8:13 PM  
Blogger ghchua said...

Hi Ken,

Your concerns are vaild and I can share some of your queries here though do allow me to keep some of the information undisclosed as I do not wish to share all my portfolio information here openly.

First, the reason why I diversify across the board is part of my risk management strategy. Some of the stocks I had in my portfolio were not liquid which means it is risky for me to buy a significant amount of shares as I will not be able to sell them easily. These stocks are not your usual STI index or mid-cap stocks. Some of them do not even have a single trade in one day and there is a wide bid-offer spread.

Secondly, transaction costs. I normally try to buy less than 1000 shares per counter and small contract size. Therefore, minimum brokerage is around $9.50. For trades more than 1000 shares, I normally use cash upfront account which incur lower transaction charges. There is no custodian fees or dividend handling charges as all my shares are held in CDP. Normally, for a dividend paying stock, your first and second dividend payout should be able to offset your transaction costs. I buy and hold and don't trade frequently.

Thirdly, platforms to track. I just use CDP online and Excel to track. No special tools required. Everything is kept simple. I don't track every single dividend coming into my bank account. But I do have a rough idea of how much dividend I have received during the full-year as CDP sends me a dividend summary report at the beginning of each calendar year.

I don't really forecast gain or profit as I let the market take care of itself. As long as I buy with a decent margin of safety, I should be able to exit at a profit somewhere in the future for a stock, either by exiting the stock via selling to the market or via takeover/delisting offers.

Hope that the above helps.

3:22 AM  
Blogger Ken said...

hi Chua

Thanks spending your time, tips, information for sharing.
The reason for asking is i had been to many free SGX talking session for newbies.. or half newbies like me. Frankly speaking, based from the attendance rate.. some session is really overwhelming. The most recent i attended is talking about SPDR gold shares.. as usual u will see plots of graph showing how Gold is currently performing. as i'm standing at the side of the auditorium, it seem half of them most likely dunno what the speaker is talking about or where or how to start. What really surprise me is end of the session an elderly can only speak chinese asking how to gain profit from there.

I think is really important to everyone before really going to invest/trading.. is to know how yr risk appettite, hidden cost, quarterly charges from bank, where to start , how to start opening account, how much time you can spend to keep track your portfolio, but is quite a unfavourable situation for elderly or those really can't understand english , written or spoken as is quite a hassle if really wanan go into trading/investment by doing their ownselves

Anyway do share your insights after so many years and rounds of trading /investing to the newbies out there. Your valuable tips definitely will benefit alot of readers out there :)

7:20 PM  
Blogger ghchua said...

Hi Ken,

Thanks for your comments. Yes, I do share some insights on investments here at my blog and also sometimes during AGMs. I do agree with you that some seniors do face the problem of not understanding the products that they are going into and some ended up losing their retirement savings. We have heard of some Ponzi schemes reported in the press often and unfortunately, some of the victims were seniors.

As investor, we do have the responsibility to know ourself, understand the costs of investing in financial products and what are the risks involved. I guess it is not easy to do that as there are various products out there. But I believe with time and experience, one can be a better investor by learning along the way. The key is to get interested in it and take charge of your own investment.

All the best in your investment journey!

11:15 PM  
Blogger K said...

Hi GH,

I noticed that most of your top 10-15 stock counters are property counters. Is this because you find their assets (property holdings) are undervalued in their books? Eg. Metro does not have any debt or you are more familiar with valuing property stocks.


12:10 AM  
Blogger ghchua said...

Hi K,

I guess many property stocks are undervalued by the market at this moment, and that reflects it in the positioning of my portfolio. As for valuation of the assets in their books, you have to look at each of the stock individually so I could not put a general comment here. Some book their assets at cost, some revalue yearly, some revalue donkey years ago etc.

But overall, yes, I have a preference for property stocks and holding companies. This is because they are normally traded at a discount from their breakup value. Which means, their valuation is not only driven by earnings growth but also narrowing of discount from their book value. Companies that depends on earning growth can be highly unpredictable. Sometimes, when earnings disappoint, the share price can come down in a big way. I do have a few stocks with earnings play like Sarine and Best World in my top holdings, and I have been careful not to buy too much into their earnings story.

7:26 PM  
Blogger kk said...

Hi GH Chua,

What's the value of your portfolio?

10:36 PM  
Blogger ghchua said...

Hi kk,

I don't think I wish to disclose the size of my portfolio here in a public setting. Thank you for your understanding.

11:38 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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