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.
Sunday, 17 July 2016
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%
Purchase: Tai Sin Electric
After selling off NeraTel, I shopped around for another company to take its place within my portfolio. Enter Tai Sin Electric.
A company selling cable and wire products, Tai Sin operated mainly in the South East Asia region. Looking at the financial report, Tai Sin shows remarkably consistent performances in the past 5 years, with revenue, Return of Assets, Return on Capital and EBITDA staying within a narrow band. While this might not be appealing to a growth investor, it shows a stable, matured company which allows for a stable dividend yield, ideal for an income investor like me. indeed, for the past 4 years the dividend has been a steady 2.1 to 2.2 cents per year, translating to a dividend yield of 6.92%. However one thing to take note of would be that the payout ratio has increased quite dramatically, from 22% in 2012 to 57% in 2015.
At the price of $0.33, Tai Sin shares are selling at a P/B and P/E ratio of 0.931 and 7.851 respectively, which are relatively cheap valuations for a stable matured company. Tai Sin also has no long term debt, which adds a margin of safety a la Ben Graham.
Business outlook for the company looks good, with the opening up of the Myanmar economy (new buildings etc), as well as projected increase in government spending on infrastructure and construction in Singapore. Buildings need electricity, and electricity requires cables and wires, positioning Tai Sin to make a good profit, should they secure projects.
In buying Tai Sin, I have loaded up on a company which in the near to mid term is likely to experience some growth, a dividend yield that is reliable, and a certain margin of safety. Doesn't hurt that the dividend yield in this case is higher than NeraTel's. Will be keeping an eye out for the stock prices and accumulate as and when weaknesses strike.
Vested with 2000 shares.
A company selling cable and wire products, Tai Sin operated mainly in the South East Asia region. Looking at the financial report, Tai Sin shows remarkably consistent performances in the past 5 years, with revenue, Return of Assets, Return on Capital and EBITDA staying within a narrow band. While this might not be appealing to a growth investor, it shows a stable, matured company which allows for a stable dividend yield, ideal for an income investor like me. indeed, for the past 4 years the dividend has been a steady 2.1 to 2.2 cents per year, translating to a dividend yield of 6.92%. However one thing to take note of would be that the payout ratio has increased quite dramatically, from 22% in 2012 to 57% in 2015.
At the price of $0.33, Tai Sin shares are selling at a P/B and P/E ratio of 0.931 and 7.851 respectively, which are relatively cheap valuations for a stable matured company. Tai Sin also has no long term debt, which adds a margin of safety a la Ben Graham.
Business outlook for the company looks good, with the opening up of the Myanmar economy (new buildings etc), as well as projected increase in government spending on infrastructure and construction in Singapore. Buildings need electricity, and electricity requires cables and wires, positioning Tai Sin to make a good profit, should they secure projects.
In buying Tai Sin, I have loaded up on a company which in the near to mid term is likely to experience some growth, a dividend yield that is reliable, and a certain margin of safety. Doesn't hurt that the dividend yield in this case is higher than NeraTel's. Will be keeping an eye out for the stock prices and accumulate as and when weaknesses strike.
Vested with 2000 shares.
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