With the approval of the 4th telco, all 3 existing telcos (Singtel, M1, Starhub) took a beating in their share prices. I used to hold some Singtel shares (bought at $3.79) but had sold them at a small profit before Standard Chartered's minimum commission kicked in.
With the fundamentals of Singtel remaining more or less the same as before, the reduced price of $3.66 meant that it was now more attractive as a value play. Was actually looking to buy in a few days ago, but decided to see how the trend was going, before committing today with 700 shares @ $3.66.
So, looking at the fundamentals of Singtel, we have:
1) Business earnings is well diversified geographically, if I'm not wrong Singapore only accounts for approx 11% of their earnings, thus the 4th telco is unlikely to affect the earnings much
2) Profit margin of approx 20%, compare with 15% for Starhub and M1
3) Payout ratio of 75%, meaning there's room for dividends to grow or unchanged even if their results should decline (touch wood!)
4) P/E of 15, which is slightly higher than Starhub and M1 at 13 and 11 respectively, however Singtel's P/B is the lowest at 2.3, with Starhub and M1 coming in at 21 (!!!) and 5 respectively.
In essence, the buying of Singtel represents a value buy, given that I was able to buy in at a lower price than previously. Singtel's fundamentals looks to be far and away more resilient than the other 2 incumbents, and I am quite confident that Mr Market will realise this before long.
Friday 30 December 2016
Monday 26 December 2016
2015 vs 2016
Just a short post regarding how much I have as compared to 2015.
2015:
Cash: approx $20,000
Stocks: $15,500
CPF: $42,300
Total: $77,800
2016:
Cash: $38,000
Stocks: $21,000
CPF: $68,200
Total: $127,200
Total net worth increased by approx $50,000 which isn't too bad, considering my low-mid 4 figure income. However, discounting the CPF amount, my cash/stock portfolio, which are a lot more liquid and accessible, increased by $24,000, which I think could do with a bit more increases next year. Especially surprising was that my stock portfolio increased only by $5,500. Will be striving to do better in this aspect next year as the stock market still represents the best chances of leading to a semi-retirement asap.
Dividends from stocks wise, 2016 got me a total of approx $700 in total, which seems little at less than $2 per day. However, I participated in all DRIP schemes available to me, which would have increased the dividend collected to approx $1000. Will be working hard to increase this to at least $1200 in 2017.
Friday 23 December 2016
End of Year Summary (Return from a Hiatus)
December's finally upon us, and I'm back after a hiatus. This post will just be a short summary of what movements I've made since my last post (August? Damn I need to work harder at this). For starters, I'm now solely concentrated in STI, having sold my Omega Healthcare stocks for a profit.
Next, I subscribed to Keppel DC Reit's rights issue, managing to snag some excess shares in a quality Reit, as well as a few other minor movements. As promised, the implementation of a minimum commission of $10 by Standard Chartered really curtailed my ability to buy in, plus with negative sentiments in the economy, I'm likely to be increasing my warchest in the coming months, unless something catches my eyes, such as maybe Singtel or Kingsmen Creative (very different set of reasons why I'm watching these two stocks closely lol)
Anyway, here's my consolidated holdings for now.
Will probably be posting the details of my financial status (figures, plans etc) soon, but on a whole I'm pretty happy about how my financials are right now, increasing my net worth steadily. In fact, after factoring my CPF monies (which I don't think I should but hey its my assets still), I have graduated from the 5-figure class as of 2016!!!!
Next, I subscribed to Keppel DC Reit's rights issue, managing to snag some excess shares in a quality Reit, as well as a few other minor movements. As promised, the implementation of a minimum commission of $10 by Standard Chartered really curtailed my ability to buy in, plus with negative sentiments in the economy, I'm likely to be increasing my warchest in the coming months, unless something catches my eyes, such as maybe Singtel or Kingsmen Creative (very different set of reasons why I'm watching these two stocks closely lol)
Anyway, here's my consolidated holdings for now.
| Name | Port% | Shares | A.Price | Dividend |
| OCBC Bank (SGD) | 21.55% | 508 | $9.46 | $152.56 |
| First Reit (SGD) | 19.94% | 3,332 | $1.24 | $320.00 |
| SoilbuildBizReit (SGD) | 14.90% | 4,900 | $0.67 | $68.51 |
| Keppel DC Reit (SGD) | 10.47% | 1,900 | $1.04 | $101.80 |
| Hock Lian Seng (SGD) | 7.22% | 4,000 | $0.39 | $142.00 |
| Accordia Golf Tr (SGD) | 6.64% | 2,200 | $0.61 | $139.43 |
| KingsmenCreative (SGD) | 3.62% | 1,200 | $0.79 | $41.00 |
| Tai Sin Electric (SGD) | 3.56% | 2,000 | $0.33 | $32.00 |
| Lippo Malls Tr (SGD) | 3.12% | 1,800 | $0.34 | $54.35 |
| ST Engineering (SGD) | 3.05% | 200 | $2.82 | $30.00 |
| AIMSAMP Cap Reit (SGD) | 3.04% | 500 | $1.32 | $36.64 |
| IREIT Global (SGD) | 2.41% | 700 | $0.63 | $45.79 |
The portfolio is currently doing quite well, beating the STI quite easily. In fact, other than OCBC and Kingsmen, both of which I entered too early due to the fear of missing out on their Ex-dividend date, most of the other holdings are in the green. Do keep in mind that this takes into account the dividends that I've collected through the months though. This more or less assures me that my way of investing is working for me right now, and probably with a few slight tweaks, should be able to get me to where I want soon.
| Year | Portfolio | ES3 |
|---|---|---|
| 2014 | 9.09% | 1.79% |
| 2015 | 0.02% | -10.95% |
| 2016 | 30.48% | 3.08% |
| Overall | 42.38% | -6.56% |
Thank you to all the readers out there, I promise I will post more things in future :)
Sunday 14 August 2016
Portfolio update July 2016
Been a bit busy this month, so here's my belated update. Due to the start of Standard Chartered's minimum commission in August, I had to sell off some of my smaller holdings and used the proceeds to consolidate some of my more solid investments.
Sold off Singtel for some gains, reason being it was getting too expensive for me to consolidate, didn't see the point in waiting to sell it with the $10 commission. Same goes for my BP and Berkshire Hathaway shares.
Sold off Singtel for some gains, reason being it was getting too expensive for me to consolidate, didn't see the point in waiting to sell it with the $10 commission. Same goes for my BP and Berkshire Hathaway shares.
| Stock Name | Units | Cost | Cost (Per Unit) | Dividends Collected |
| First REIT | 3301 | $4,128.07 | 1.251 | $225.25 |
| Keppel DC REIT | 1000 | $937.00 | 0.937 | $68.40 |
| Saizen REIT | 2000 | $1,724.21 | 0.862 | $2,201.60 |
| iReit | 700 | $441.61 | 0.631 | $23.53 |
| LMIRT | 1800 | $614.07 | 0.341 | $23.57 |
| Hock Lian Seng | 4000 | $1,557.11 | 0.389 | $142.00 |
| OCBC | 508 | $4,806.69 | 9.462 | $61.12 |
| Tai Sin Electric | 2000 | $651.51 | 0.326 | $0.00 |
| KingsMen Creative | 1200 | $950.00 | 0.792 | $29.00 |
| Accordia Golf Trust | 2200 | $1,339.23 | 0.609 | $85.53 |
| AIMS AMP Industrial REIT | 500 | $659.65 | 1.319 | $23.30 |
| ST Engg | 200 | $563.35 | 2.817 | $20.00 |
Bought:
300 shares iREIT
1000 shares Hock Lian Seng
Sold:
100 shares Singtel
300 shares iREIT
1000 shares Hock Lian Seng
Sold:
100 shares Singtel
| Stock Name | Units | Cost /USD | Cost (Per Unit) / USD | Dividends Collected |
| Omega Healthcare Reit | 33 | $1,112.68 | 33.718 | $4.80 |
Bought:
20 shares OHI
Sold:
2 shares Berksire Hathaway
3 shares BP
20 shares OHI
Sold:
2 shares Berksire Hathaway
3 shares BP
Monday 1 August 2016
SCB Minimum Trading Fee: Change in Investment Strategy?
As many of you might know, Standard Chartered's online platform has ended their no minimum trading fees, and as of yesterday, will now be charging a minimum of $10 per trade (unless you're one of their priority banking customers).
As someone who has almost exclusively taken advantage of their low trading fees, this is a huge blow, and likely to change my investment strategies significantly.
The lack of a minimum trading fee meant that I was able to 'test drive' many of my stock choices at a very low price, as can be seen with my small pockets of holdings in ST Engineering, Singtel etc. This enabled me to take low risks, and I was able to get out of several bad trades with little losses. Conversely though, this meant that winning trades got me little profit as well, but at least it proves that I was on the right track.
Now though, given that the maximum fee I can tolerate is approximately 1%, all trades I make will have to be a minimum of $1,000, a not-so-small outlay considering the size of my current portfolio. End result would be of less activity in the market, since I would need time to save up the requisite amount, and also, investments using a Regular Savings Plan are now looking more attractive. I'm now seriously considering placing money with OCBC's blue chip investment plans, maybe $500 per month (since the minimum transaction fee is $5) into the STI ETF.
What do you guys think?
Sunday 17 July 2016
Taking Profits: Singtel and FCT
In the post-Brexit rise of the Singapore stock market, which I feel is kind of unwarranted and likely driven by short term investors rather than any true value, I've taken profits off the table for Singtel and Frasers Centrepoint Trust.
I've written a post for my decision with regards to FCT (read here). Singtel on the other hand, was sold for other reasons. Of course, the valuation was getting a bit richer than I was comfortable with, however I'm still positive in its short term outlook, being likely to rise with fearful investors flooding the market. No, the main reason why I sold it was because I wouldn't buy in at its current price, and with the minimum trading commission from Standard Chartered kicking in soon, might as well take some profits (~$50). Also, the mid to long term outlook for Singtel is highly dependent on its overseas subsidiaries, which bears a bit more looking at.
While I've exited my position, I'll be keeping Singtel on my watchlist, and will be ready to pounce on any price weakness, likely to be below $3.80.
I've written a post for my decision with regards to FCT (read here). Singtel on the other hand, was sold for other reasons. Of course, the valuation was getting a bit richer than I was comfortable with, however I'm still positive in its short term outlook, being likely to rise with fearful investors flooding the market. No, the main reason why I sold it was because I wouldn't buy in at its current price, and with the minimum trading commission from Standard Chartered kicking in soon, might as well take some profits (~$50). Also, the mid to long term outlook for Singtel is highly dependent on its overseas subsidiaries, which bears a bit more looking at.
While I've exited my position, I'll be keeping Singtel on my watchlist, and will be ready to pounce on any price weakness, likely to be below $3.80.
Thursday 7 July 2016
Much ado about Brexit
Brexit's come and passed, and it has been a disappointment. I had been sitting on my warchest for awhile now, as I was hoping for the market to drop on overreaction. Well, prices did drop on the first trading day, but I sat on my money, thinking that it would drop further.
Cue the inevitable jump in prices the day after, and many days after that. While that allowed me to take some profits, I'm still more disappointed that I wasn't able to buy in more of the stocks on my watchlist. As the adage goes, "Time in the market, is more important than timing the market".
I suck at timing the market.
Purchase: Omega Healthcare Reit
With the minimum commission fee for Standard Chartered looming, I felt it would be prudent to sell off or consolidate my smaller holdings. Having done so on my SGX portfolio, it was time to take some action on my NTSE portfolio as well. I sold off all my holdings in BP and Berkshire, and topped it up with some cash which i then used to add more shares of Omega Healthcare Reit.
Omega Healthcare Reit is an US based reit which deals mainly with properties which houses Senior Nursing Facilities. Simply put it owns facilities that does after care services for senior citizens after they are discharged from hospitals.
With an ageing population the business is likely to grow. Also, the properties under this reit are mostly on triple net leases, meaning that they only provide the property; taxes, utilities, management etc are all paid by the tenant, making it a low cost operation for the reit.
Main source of income for the reit is through government reimbursement for the patients, so barring an order by the government to stop healthcare reimbursements (highly unlikely as seniors are a significant voting bloc there), income is unlikely to drop. In fact, the reit has increased their dividend payments for 16 consecutive quarters, up till the present $0.60 per share per quarter, for an annualised 6-7% annual yield, depending on your entry price in the past 1-2 years.
OHI is now my sole remaining stock outside of Singapore, and fingers crossed that it do well as I expect it to.
Sunday 3 July 2016
Portfolio update June 2016
Into the month of July we go, and another portfolio update! June was again an active month, with several transactions made with the additional funds from divesting my shares in NeraTel and ABR Bond Fund.
Tai Sin Electric was bought to replace my investments in NeraTel (see post here), while consolidations were made for OCBC, LMIRT, Accordia Golf Trust and Hock Lian Seng.
Dividends received in June were from Kingsmen, Fraser Centrepoint Trust, OCBC (DRIP), Accordia Golf Trust and AIMS AMP Industrial REIT for SGX, and BP for NYSE.
SGX:
Bought:
100 shares OCBC
1100 shares LMIRT
100 shares Accordia
200 shares Hock Lian Seng
Sold:
300 shares ABF Bond Fund
Total dividends received: USD$8.95
Dividends received in 2016: USD$8.95
Tai Sin Electric was bought to replace my investments in NeraTel (see post here), while consolidations were made for OCBC, LMIRT, Accordia Golf Trust and Hock Lian Seng.
Dividends received in June were from Kingsmen, Fraser Centrepoint Trust, OCBC (DRIP), Accordia Golf Trust and AIMS AMP Industrial REIT for SGX, and BP for NYSE.
SGX:
| Stock Name | Units | Cost | Cost (Per Unit) | Dividends Collected |
| First REIT | 3301 | $4,128.07 | 1.251 | $225.25 |
| Keppel DC REIT | 1000 | $937.00 | 0.937 | $68.40 |
| Saizen REIT | 2000 | $1,724.21 | 0.862 | $2,201.60 |
| iReit | 400 | $225.11 | 0.563 | $11.41 |
| LMIRT | 1800 | $614.07 | 0.341 | $23.57 |
| Hock Lian Seng | 3000 | $1,216.32 | 0.405 | $142.00 |
| OCBC | 508 | $4,806.69 | 9.462 | $61.12 |
| Tai Sin Electric | 2000 | $651.51 | 0.326 | $0.00 |
| KingsMen Creative | 1200 | $950.00 | 0.792 | $29.00 |
| Accordia Golf Trust | 1600 | $936.23 | 0.585 | $85.53 |
| AIMS AMP Industrial REIT | 500 | $659.65 | 1.319 | $23.30 |
| ST Engg | 200 | $563.35 | 2.817 | $20.00 |
| Singtel | 100 | $378.90 | 3.789 | $6.80 |
Bought:
100 shares OCBC
1100 shares LMIRT
100 shares Accordia
200 shares Hock Lian Seng
Sold:
300 shares ABF Bond Fund
Total dividends received*: $847.55 (excluding special dividend from Saizen)
Dividends received in 2016: $274.61 (excluding special dividend from Saizen)
*DRIP Shares:
8 shares OCBC
NYSE:
Dividends received in 2016: $274.61 (excluding special dividend from Saizen)
*DRIP Shares:
8 shares OCBC
NYSE:
| Stock Name | Units | Cost /USD | Cost (Per Unit) / USD | Dividends Collected |
| Berkshire Hathaway | 2 | $271.45 | 135.726 | $0.00 |
| BP | 3 | $111.75 | 37.250 | $2.37 |
| Omega Healthcare Reit | 6 | $191.93 | 31.988 | $4.80 |
Total dividends received: USD$8.95
Dividends received in 2016: USD$8.95
Friday 1 July 2016
Sell: Fraser Centrepoint Trust (FCT)
I sold off my entire holdings (500 shares) of FCT today at $2.10, for a small 5% gain. Reason was that the price had risen sharply following Brexit (most of the local REITs rose quite ridiculously), and was now beyond what I thought was reasonable.
Firstly, the Price to Book Value is now about 1.12x, which is a bit more than I'm comfortable with. In addition, the upcoming renovations and upgrading at NorthPoint, which is their 2nd highest income contributor at ~28%, will likely affect the yield in the short to mid term. Combining these 2 factors gives me a certain measure of certainty that the price will drop to a more reasonable level.
Unlike other divestments that I've made in the past, the cash I've gotten from selling FCT will be kept in reserve, until a price that will provide a better margin of safety presents itself, likely to be in the $1.9x range.
Firstly, the Price to Book Value is now about 1.12x, which is a bit more than I'm comfortable with. In addition, the upcoming renovations and upgrading at NorthPoint, which is their 2nd highest income contributor at ~28%, will likely affect the yield in the short to mid term. Combining these 2 factors gives me a certain measure of certainty that the price will drop to a more reasonable level.
Unlike other divestments that I've made in the past, the cash I've gotten from selling FCT will be kept in reserve, until a price that will provide a better margin of safety presents itself, likely to be in the $1.9x range.
Friday 3 June 2016
Portfolio Update May 2016
We have officially reached the halfway mark of the year, and an update for the portfolio is in again! May was quite a busy month for me, making several transactions. Sold off all my holdings in NeraTel due to the announcement that they were selling off their payment solutions business. Also bought Kingsmen Creative shares on 2 seperate occasions, taking the opportunity to average down. Bought more Omega Healthcare Reit for my US stocks as well.
In addition, took dividends in ST Engineering, NeraTel, Hock Lian Seng, LMIRT and First Reit for SGX, and OHI for NYSE.
SGX:
Bought:
300 shares KingsMen Creative
Sold:
1300 NeraTel
Bought:
7 share of Omega Healthcare Reit
Total dividends received: USD$7.17
Dividends received in 2016: USD$7.17
Yield on cost: 0.89%
In addition, took dividends in ST Engineering, NeraTel, Hock Lian Seng, LMIRT and First Reit for SGX, and OHI for NYSE.
SGX:
| Stock Name | Units | Cost | Cost (Per Unit) | Dividends Collected |
| First REIT | 3301 | $4,128.07 | 1.251 | $225.25 |
| Keppel DC REIT | 1000 | $937.00 | 0.937 | $68.40 |
| Saizen REIT | 2000 | $1,724.21 | 0.862 | $2,201.60 |
| iReit | 400 | $225.11 | 0.563 | $11.41 |
| LMIRT | 700 | $244.59 | 0.349 | $23.57 |
| Hock Lian Seng | 2800 | $1,146.67 | 0.410 | $142.00 |
| OCBC | 400 | $3,959.45 | 9.899 | $54.00 |
| ABF Bond Fund | 300 | $343.22 | 1.144 | $7.95 |
| KingsMen Creative | 1200 | $950.00 | 0.792 | $5.00 |
| NeraTel | 0 | $0.00 | 0.000 | $20.50 |
| Accordia Golf Trust | 1500 | $876.58 | 0.584 | $20.88 |
| AIMS AMP Industrial REIT | 500 | $659.65 | 1.319 | $8.55 |
| ST Engg | 200 | $563.35 | 2.817 | $20.00 |
| Singtel | 100 | $378.90 | 3.789 | $6.80 |
| Fraser Centrepoint Trust | 500 | $996.93 | 1.994 | $0.00 |
Bought:
300 shares KingsMen Creative
Sold:
1300 NeraTel
Total dividends received*: $703.91 (excluding special dividend from Saizen)
Dividends received in 2016: $130.97 (excluding special dividend from Saizen)
Yield on cost: 4.21%
*DRIP Shares:
101 First REIT
NYSE:
Dividends received in 2016: $130.97 (excluding special dividend from Saizen)
Yield on cost: 4.21%
*DRIP Shares:
101 First REIT
NYSE:
| Stock Name | Units | Cost /USD | Cost (Per Unit) / USD | Dividends Collected |
| Berkshire Hathaway | 2 | $271.45 | 135.726 | $0.00 |
| BP | 3 | $111.75 | 37.250 | $2.37 |
| Omega Healthcare Reit | 6 | $191.93 | 31.988 | $4.80 |
Bought:
7 share of Omega Healthcare Reit
Total dividends received: USD$7.17
Dividends received in 2016: USD$7.17
Yield on cost: 0.89%
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