My Investment Portfolio (October 2024)
STI ended October at around 3558 points, down a bit as compared to last month. Early in the month, investors were concerned with escalating tensions in the Middle East, though some positive announcements on stimulus measures came out of China. Profit taking then set in after more details on China stimulus measures were absent. Volatility also increased towards the end of the month due to the looming US elections.
I have attended the following physical AGMs/EGMs/briefing this month - GRP, Lion AsiaPac and Teho International.
For my top 30 holdings this month, there is not much major changes except for CapitaLand Integrated Commercial Trust, which returned to the list after allocation of preferential offer units. CapitaLand Ascendas REIT dropped out after it performed in line with most other REITs as investors lowered down their rate cut expectations, resulting in selloff in the sector. Top 5 holdings for US$ denominated holdings did better, as Hongkong Land announced plans to unlock value.
I have bought the following companies from the market this month - Alliance HC, AsiaMedic, Baker Tech, Bonvests, Bund Center, Captii, CosmoSteel, Digilife Tech, First Sponsor, Frasers Property, Global Testing, GuocoLand, Hiap Hoe, Hong Leong Finance, Hotel Grand Central, Hotung, IFS Capital, Indofood Agri, Innotek, Jardine Matheson, Koh Brothers, KSH, Mandarin Oriental, Metro, MindChamps, Nam Lee, OUE, OUE Healthcare, Overseas Education, SBS Transit, Shangri-La Asia, Shopper360, Sin Heng, Sing Holdings, Singapore Land Group, Singapore Shipping, Singapura Finance, Stamford Land, Straits Trading, Thakral, Tuan Sing, UOA, Wing Tai and YHI. I have also closed my position in Jadason.
I have accepted the following voluntary delisting/cash offer this month - Silverlake Axis.
I have also participated in the following scrip dividend scheme - UOA.
Next month, the US election result will be in focus. With markets exhibiting higher volatility, I will continue to be more defensive in my portfolio positioning. Efforts will continue to be made to identify more value stocks to invest.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 30 October 2024)
Top 30 Holdings (Sing$ Denominated shares)2. Hongkong Land
3. Jardine Matheson
5. DFI Retail Group
Top Holdings (HK$ Denominated shares)
1. AV Jennings
1. Streettracks STI ETF
3. CapitaLand Integrated Commercial Trust
5. PM Data
My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation
2. Alpha Professional Holdings Ltd (formerly known as Z-Obee Holdings Ltd)
My Australia Stock Portfolio
1. GPS Alliance Holdings Limited
My Unlisted Company Portfolio
1. Iconic Global Limited
2. Dongshan Group Ltd (formerly known as Greatronic Limited)
3. General Magnetics
4. Fastech Synergy
5. Memory Devices
6. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
7. FM Holdings
8. FerroChina - Under Liquidation
9. FirstLink Investments
10. NEL Group
11. Jets Technics
12. Hongwei Technologies Limited (In Provisional Liquidation)
13. FDS Networks Group
14. China Oilfield Technology
15. China Milk Products Group - Under Liquidation
16. Pacific Healthcare
17. Fung Choi Media - In Liquidation
18. Europtronic Group - In liquidation - Compulsory winding up (Insolvency)
19. Attilan Group
20. Transcorp - In liquidation - Compulsory winding up (Insolvency)
Labels: Portfolio
posted by ghchua at 7:57 PM
8 Comments:
Hi Ghchua,
Based on your insight, is it possible for one to generate 7% annual dividend via sg counters investment?
WTK
Hi WTK,
You might be able to do it with a high risk portfolio of higher yielding stocks, REITs and Business Trusts, coupled with some stocks with potential to give you special dividend payouts. You can also do it with leverage on a portfolio that yields a lower annual dividend via margin account.
Personally, I don't advocate looking at dividends only when selecting stocks to invest. And a higher yield portfolio doesn't mean that it is safer. There is potential for capital losses or margin call if you use a margin account to achieve the objective.
Do remember that the nominal yield for stocks listed on SGX is around 4%pa thereabouts. Although there are stocks which gives a higher yield, one must also consider the risk involved as well as those companies might employ higher leverage, trading at expensive levels, pay out 100% (or more) of their earnings as dividends etc.
Don't just go for yield alone when selecting stocks to invest. Look at the capital appreciation potential as well.
Hi Mr Chua
I note that you have been buying Bonvests, Singapore Land, Nam Lee, Straits Trading regularly. These are shares that I have bought several years ago and their performance has been rather depressing to say the least. To me, these are mistakes that I have made in my investment journey.
For Bonvests, they are now operating at a loss and the company performance seems to be worsening. There are no signs of activity that will improve the company's performance. At best, I can only hope for a delisting to recoup back my investment.
For Straits Trading, the company's performance is also poor. Although they give out decent dividend, I do not think it is sustainable. Plus the gearing is very high.
Singapore Land is extremely undervalued but it is controlled by 2 parties with slightly more than 10% float in the market. Both parties seems to be just waiting out and I do not think there are signs of delisting in the near future. Although the company performance is decent, their dividend is poor. All these factors caused the share price to be depressing.
Name Lee is a small company. Although it has given out decent dividend during the pre-covid years, the past 1-2 years seems to be rather challenging for them.
I just wonder what is your perspective for keep investing in them (other than having deep pockets....haha). Would you share your perspective with me?
Hi Robin,
My approach to stock investing is not only looking at short term share price or company performance. It is also about deep value, which is one of the methodology in investing which I personally subscribed to.
The few stocks that you have mentioned here are all undervalued, with respect to their reported NAV. I mean, you can say you bought at xx price n years ago but does it matter? Now, the market is offering you at this price. Your past actions does not dictate your current decision whether to buy those stocks now or not.
You have cited various issues with these companies. Some you said poor dividend but good performance, some you said good dividend but challenging or not sustainable, some you said operating at a loss, small company etc. But all seems to have a common characteristics - Poor share price performance for the past few years. So, you are looking for a perfect stock? Pays good dividend, consistently did well, low gearing, company with a decent size, decent free float etc. Sure, pay for it in terms of higher valuation.
In the end, nothing in this world is perfect. It is either you pay for better "service" or you tolerate those fault areas and settle for lower valuation. And hopefully, one day the market will realize the value of these stocks, provided there is no fraud in these companies.
Deep value investing is not about investing in a perfect stock.
Hi ghchua,
Can you share your view on SamuderaShipping and SingShipping? Their valuations look similar. Which one may be a better investment?
Thank you in advance.
JTK
Hi JTK,
If you are looking for growth, then SamuderaShipping might be a better choice as they are expanding their fleet. However, it is more volatile and subjected to rate changes. SingShipping is more steady as they have locked in rates with counter-party, and they had not been adding onto their fleet for quite sometime.
So, it really depends on your risk appetite.
Hi Ghchua,
What is the thought of excluding margin account out of such investment portfolio which is built via buy and hold strategy throughout the entire life?
What is your view on the sustainability in respect of such approach?
WTK
Hi WTK,
I don't think it is sustainable as 7%pa yield is too high for a lower risk portfolio. If you look at STI stocks, even if you zoom into blue chip REITs, most are only offering you only 5%+pa at this moment. So, you definitely have a take on more risk even without leverage. Which means, there might be a higher risk of capital loss.
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