Thursday, January 1, 2015

[SGX Portfolio] December 2014 Update and Wrap Up

As mentioned previously, this will be my attempt at having a monthly update of my SGX portfolio.

Here are the current stats of the portfolio as of end December 2014.

                                                                         Lots         Average Price   Dividends Collected
Croesus Retail Trust
1
0.900
$54.00
Saizen REIT
1
0.875
$31.00
CDW
1
0.131
$6.26
Asian Pay TV Trust
1
0.760
$61.20
Lippo Malls Retail Trust
5
0.353
$37.10
New Toyo
2
0.275
$6.00
Chuan Hup
1
0.285
$10.00
Hotung
3
0.149
-
OUE Commercial REIT
1
0.805
-
Hock Lian Seng
1
0.270
-
Global Investments
3
0.141
-
Perennial CRT
1
0.520
$9.50
Singapore Reinsurance
1
0.295
-
Valuetronics
1
0.300
-
China Fishery
1
0.300
-
Casa Holdings
2
0.1735
-

Total Cost    $8,973   
Unrealized Gains$129
Realized Gains$0.56
Dividends Collected$215.06

*Realized Gains will take into account the final net profit or loss after including transaction costs to close a long position on a security. Dividends for closed positions will be grouped under realized gains. Dividends that has been collected for positions still held (which are realized) are separately counted.

I took the plunge with Lippo Malls when price plunged past the $0.34 mark that new unitholders entered in with. My holdings with Lippo Malls is 18.6% based on market value now, and I think this is probably a too big weight for any portfolio. I will be starving off more purchases on Lippo Malls unless they become really really attractive.

I recently also took up a small stake in Casa Holdings. I didn't blog about it because December was quite busy, but it looks to me like a decent company with a strong dividend history. Their financials look very acceptable to me. That's about it. No catalyst for the purchase other than just a weak price for a decent looking company.

I am holding off increasing my holdings in New Toyo even though there is price weakness. New Toyo is currently the weakest performer in my portfolio at -9.1% performance, while China Fishery is a close 2nd at -8.3%. China Fishery was at one point 20% lower than my purchase price, which seems like a shame that I didn't pick it up. However, like I said before, I don't want to bet too much on the underdogs.

My best performer was CDW Holdings which is up 33.8%. Incidentally, this was one of my first buys back in May and I was very skeptical of smaller and unknown companies. My next best performer is Asian Pay TV which is up 21.2%, also another of my early purchases in May. Valuetronics is my 3rd best performer, up 18.3%, which saw me taking a plunge in the similar fashion to Lippo Malls and China Fishery. The point is that not all dumpster dives are bad choices.

Annual income from dividends is now expected to be about $640 for a full year, but of course I collected some and miss out others by not owning them the entire period. Doesn't seem to be any counters declaring dividends next month.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 7.1%.

The watchlist is still big, but I think I have managed to weed out most of the less desirable stocks. I am very eager for the drop in share lots from 1000 to 100 next month, because it will enable me to have access to much more companies that used to have a very high capital requirement.

My portfolio performance on cost is up 3.8%. However, I had been adding in holdings throughout the whole year and I only started a few months after the year began, so I don't think this is very useful as an apples vs apples comparison. That said, I think I must applaud myself for not making rash decisions throughout the year and for stoically picking up counters on WEAKNESS, not STRENGTH. I am definitely by no standards a "pattern" or "breakout" trader, although I have studied that school of trading. It just doesn't fit into my personal trading personality. I am quite happy that I am discovering my personal style of investing which is in line with conventional wisdom.

Over the course of the next year, my plan is to accumulate good counters when there is price weakness. I already know which counters to zoom in on since they are on my watchlist. I hope to at least double the size of my SGX portfolio over the course of the year. I can actually channel and increase my investments to my SGX portfolio substantially, but I think it is prudent to have diversification, and not just in assets, but also a variation in style. So I am limiting the size of my own equity "stock-picking".

6 comments:

  1. Hello GMGH!

    it's nice to see so much growth in your buys in May period. And and your stocks holding are mostly 1 or 2 lots. I hope you are using standard chartered broker to minimise that broker fee per transaction which is $25. I'm using POEM currently, i hope this year they will lower the transaction fee if not i will open a new account with Standard Chartered because of the new changes - to be able to buy minimum of 100 shares.

    Hope to see your portfolio grow more!

    Cheers,

    jfree

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    Replies
    1. Hi jfree,

      I think I really went in to pick the lowest hanging fruit when I made my first few buys! Yes, I am using SCB as my broker. They are the only ones with fees that make sense considering my small portfolio size. Their fee structure will definitely be a good thing once the board lot size changes. I am not sure if the other brokers will have a pricing change so soon, but I think eventually they will! Thanks, all the best to you too!

      Delete
    2. Hi gMgH,
      I like the way you create your very own "STI 30", thanks to SCB! Hopefully SCB will not charge any custodian fees ever.

      It is not too surprising to see you adding more LMIRT. Lippo Malls appears to be Indo-version of our sg CapitaMall Trust. You think so?

      Speaking of LMIRT, I own 1 lot and I have some mixed feelings. It has, no doubt, great potential to be very successful. But investors generally is rather bearish on it for quite awhile. LMIRT seems unable to keep its share price up.

      Perhaps its current strategy is to grow and expand. I still remember from my accounting class that the most important goal is to maximize shareholders wealth by increasing share price. Maybe LMIRT is already trying to max. shareholders wealth, but the part on "increasing share price" will only come later? How late? I am willing to wait for 10-20years.

      Happy New Year to you!

      Cheers
      J.S.

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    3. Hi J.S.

      Thanks! Yes, SCB is the perfect broker for my style of picking up many various stocks, a few lots at a time. I really do hope they keep things they way they are, or make it even better!

      Actually, I have never seen an LMIRT mall before in my life, so I don't really know if they are the Indo-version of our CapitaMalls. But for a retail REIT with established properties in a growth market.... the yield is just too attractive. It is mispriced to me.

      I think investors are being overly negative just recently, which might be an accumulation of bad experiences with LMIRT over the years. Like you said, they can't seem to keep share prices up. If I'm not wrong, counting in dividends throughout the years, the counter down 10%. A lot of opportunity cost lost, even if there was not much real loss.

      Shareholder's value is not just in increasing the share price. It depends, do you rather have capital gains, or yield gains? I do think that they will be a good "bet" in the future, hence the biggest weighting in my portfolio. However, I am trying to diversify a lot more broadly, so even if LMIRT is a dud, I won't sleep any sleep over it. We never know if it's really going to be a great stock in the future!

      Happy new year to you too!

      Delete
  2. Wow, your portfolio has 4 stocks which I have, and some others are those which I want to buy! :) Great minds think alike? :)

    ReplyDelete
    Replies
    1. Hey LepakInvestor,

      Depends how many stocks you have, it could be just a statistical coincidence, haha. Only saw your US portfolio on your blog though!

      Delete

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