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Friday, December 29, 2017

My Investment Portfolio (December 2017)

STI ended the year at around 3402 points, up 18% from last year. But this month had been quiet in terms of market action and news front, as a lot of investors were on holidays. Trading volume was also low in what had been a slow moving market. There is also not much corporate reporting as most employees are probably on leave.

For this month, I have attended the following AGMs/EGMs/briefing - SHC Capital Asia.

For my top 30 holdings, ComfortDelgro returned to the list as I continued to add onto the stock on share price weakness. Other than that, it had been a quiet month with not much major changes in terms of position for my holdings in the list.

I have bought the following companies from the market this month - AP Oil, Bund Center, ComfortDelgro, Delfi, Global Testing, GRP, Ho Bee Land, Hotung, HRnetGroup, Hwa Hong, Low Keng Huat, Lum Chang, Mandarin Oriental, MegaChem, Metro, Raffles Medical, Sinarmas Land, Singapore Reinsurance, Singapore Shipping, ST Engineering, Stamford Land, Teckwah, TIH, UIC, UOB Kay Hian and Yeo Hiap Seng. I have also closed my positions in Accrelist, LifeBrandz (warrants), Lorenzo, Rowsley, SHC Capital Asia and The Place Holdings.

I have participated in the following rights issues this month - CFM and Maxi-Cash.

I have participated in the following scrip dividend scheme this month - AusNet Services. I have also accepted the following voluntary delisting/cash offer this month - Cogent.

It had been a decent year in term of returns for investors in the stock market. Hopefully, 2018 will be a better year for all but I guess it will be a tough ask for most investors out there to replicate the performance in 2017. Nevertheless, with some rationalization of my portfolio this year to prune down some stocks and adding onto my more confident positions, I hope to enter 2018 with a more robust portfolio to tackle the volatile markets. The rationalization to prune down stocks is still work in progress and will continue well into 2018 and beyond. In the meantime, I will continue to look out for good stocks to add onto my portfolio but not in a big way as last time as the focus will be on adding onto my existing holdings. Going forward, I will be holding lesser stocks but with heavier allocation in my top holdings. However, no specific target on the number of stocks to hold had been set at this moment.

Wishing all my readers a Happy 2018 and many more wonderful years ahead.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 December 2017)

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

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

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

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
2. Z-Obee Holdings Ltd

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
21. Pacific Healthcare
22. Eratat Lifestyle - In Liquidation
23. Fung Choi Media - In Liquidation
24. P99 Holdings - In Liquidation

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

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16 Comments:

Blogger Ben said...

Hi Ghchua,

I hope that 2017 has been a good year for you.

All the best to you in 2018.

Ben

8:54 PM  
Blogger ghchua said...

Hi Ben,

All the best to you in 2018 too! And thanks for supporting my blog all these years.

9:07 PM  
Blogger Chong said...

Hi ghchua,

Happy new year to you. Would like to find out from you what is the best way to buy USD stocks such as Diary farm and Jardine Strategic Holding? I understand that the different brokerages are willing to settle in SGD but is there a better a better way?

Appreciate your advice.

Chong

1:48 AM  
Blogger ghchua said...

Hi Chong,

Most brokers also operate a multi-currency account which you can also make use of. Essentially, it is a facility for you to switch between currencies but only need one account. But you are still subjected to exchange rate movements unless you maintain a US$ deposit account to settle those trades.

Personally, I seldom deal with USD denominated stocks except for some of those listed on SGX. Therefore, it is not cost effective for me to maintain a US$ deposit account.

2:16 AM  
Blogger Rocky said...

Hi GH Chua,

Good day to you.

Regarding TIH t55 recently received unconditional offer of sgd0.57, what should i do? I must sell all? I am holding this stock quite many years ago and watching the prices drop from sgd1.8 until current price.

Between what is mean:
1) 0.125 will be paid by cash
2) 0.445 will be paid by the issue of three year unsecured 2.25cent note (quite blur of this..wish you can explain more.Thanks)

Best regards,
Rocky

4:26 PM  
Blogger ghchua said...

Hi Rocky,

The decision to buy and sell a stock is quite personal. It really depends on your needs and also valuation of the stock. Therefore, I suggest you wait for the IFA report on the offer before making any decision.

Basically, the unsecured note is a 3 year bond with a coupon rate of 2.25%pa. Therefore, you will be getting 2.25%pa interest on your $0.445 per share for 3 years before getting back your principal. Effectively, you are lending money to the offeror for 3 years while earning some interest along the way.

Hope that the above clarifies.

8:43 PM  
Blogger Rocky said...

Hi GH Chua,

Thanks for your prompt reply.

What is mean IFA? IFA report will affect the current offer? Do you know when the IFA report will be announced? Sorry that many questions here.

However i will stick to your advise to wait for the IFA report.

Thank you

Best regards,
Rocky

10:17 PM  
Blogger ghchua said...

Hi Rocky,

IFA - Independent Financial Advisor.

IFA report is crucial for any takeover offers because independent directors of the company rely on it in making recommendation to shareholders on whether to accept or reject the offer. Normally, they will agree with the IFA recommendation although I do experienced some cases whereby they disagree. IFA report will also provide details on the basis for making the recommendation so therefore you can read it and make a decision. It is quite comprehensive.

The IFA for TIH offer has just been appointed. So, you have to wait for maybe another month or so for the report to be out.

However, if you ask me personally, I will not be accepting the TIH offer. Reason being a big part of the offer (i.e. $0.445 per share) is in unsecured bond with low interest. So effectively, if you have taken time value into consideration, the offer price should be below $0.57 per share because you only get back the $0.445 bond component in 3 years time (provided of course that the issuer do not default). Also, taking into consideration that now is a bull market that we are experiencing, the revalued NTA of TIH should be higher than what it is reported. Plus, there is still the unsettled law suit with Mitsui Life which TIH might be able to receive some compensation.

All in, with Lippo coming in, TIH will be able to tap onto their contracts and financial resources to scale up their business. Therefore, I believe that by not accepting the offer, TIH shareholders will be able to ride on to their strength of Lippo and further grow their business in a larger way.

8:27 PM  
Blogger Rocky said...

Hi GH Chua,

Thanks for your explanation.

However still have some question here:
1) As a small shareholder, how to reject their offer if major shareholder agree the accept the offer eg. 90% major shareholder accept the offer.

2) Proseducer to reject the offer and accept the offer?

3) If we didnt give them any reply of this offer, what is the consequences?


Thanks a lot!

Best regards,
Rocky

11:17 PM  
Blogger ghchua said...

Hi Rocky,

1) There is no 90% majority shareholder in TIH. Also, they have stated their intention to maintain the listing status of TIH. Therefore, even if they get more than 90% acceptance, they will place out shares to maintain listing status.

2) To accept the offer, you just need to fill up and sign the form that they sent to you. To reject, you do not need to do anything. Just ignore the form.

3) No reply means rejecting the offer. No consequences as you will still remain as a shareholder of listed TIH.

12:00 AM  
Blogger Rocky said...

Hi GH Chua,

I've more clearer picture now for this offer. I will reject the offer since i'm holding for so long (at least 6 years). Hope to see the price up to sgd1.80 again😊

Again, thanks a lot for your willingness and patience to answer my questions!

Best regards,
Rocky

7:45 AM  
Blogger Sunny said...

Hi, Shifu Chua

Heeton offers notes at 6.08% pa, is it a good bond to have?

Tks

5:46 AM  
Blogger ghchua said...

Hi Sunny,

Sorry, but I don't really invest in corporate bonds so can't really comment on them. As you might have known, Heeton do have high gearing so it really depends on what price you can get the bond and what is the duration of the bond.

7:59 PM  
Blogger Kenny WSJ said...

Hi ghchua,

I'm surprise with your stock pick... seems knowledgeable to me... very awesome list of holdings... do you have any outlook on MM2 Asia, Unusual Limited, OKP holding, Spackman and UPP Holding?

I would like to have some info from your outlook on this few holding that i have invested :)

6:35 AM  
Blogger ghchua said...

Hi Kenny WSJ,

I will only comment on OKP and UPP as I do not hold the other stocks in your list.

For OKP, I think we will have to wait sometime before the effect of their PIE worksite accident sunk in. I do think that the stock is undervalued at this moment as they have some development properties profits yet to be booked in.

For UPP, so far their purchase of Taiga had done ok. The Malaysian paper mill business has also recovered while Myanmar power plant remains steady. I will be looking forward to a decent set of numbers when they announced their full-year results next month.

5:52 AM  
Blogger Kenny WSJ said...

Hi ghchua,

Thanks for sharing, i still hoping for this 2 stock to recover... my other 2 entertainment share perform well except this okp and upp... let’s hope for the best bah... i’m still looking at this korean movie producer share also... seems quite interesting

6:31 AM  

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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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