Thursday, 26 July 2012

Portfolio: July 2012

July has been a month of positive surprises.
The market value of my portfolio increased mainly due to increases in stock prices of my 2 largest holdings (Stamford Land & Frasers Centrepoint Trust), plus the purchase of United Engineers.
Nonetheless, I am still concerned about improving my overall Portfolio Yield.

There doesn't seem to be any fantastic yielding stocks right now for me to recycle my capital as the entire market seem to do a mad-charge for defensive stocks.
Looks like I got to wait while accumulating dividends meanwhile.

Actions taken in July:
 -I accepted Wing Tai's offer at $1.39 for about 5,000 shares and retained the rest.
 -Added 17,000 shares of United Engineers for reasons explained in my previous post.


  1. Hi, did you attend Stamford Land's AGM yesterday? Any thoughts on the company? :) Nice posts on STL btw. Please keep sharing.


    1. Hi Stock Shrimps,

      Thanks for visiting my blog.
      Yes, I attended the AGM yesterday. Enjoyed the pastry given. :-)

      Key take-away from Mr Ow was that he intends to hold a strategic meeting with his management team soon to discuss key business initiatives, which I find very appropriate. He mentioned several possibilities other than going into development, e.g 3 to 4 star hotels, spinning off into a REIT, accepting reasonable offers for his hotels, etc.
      Given that the company is now in a stronger position than ever before(sitting on a pile of ~ S$90m cash), this is an exciting time as the appropriate deployment of this substantial capital would be the key to the company's future. Hopefully the strategic meeting will result in very good deployment of these funds.
      I am hopeful due to the fact that Mr Ow runs the business conservatively and loves to make bargain deals. Seems to be in his blood.

      I will wait for some key signs of future direction the company is heading towards before deciding what to do. To buy, sell or hold.

  2. Hi

    You have such an impressive portfolio and a pretty good yield I would say.

    If I may ask, do you consider to diversify your portfolio by width, understand that you are holding massively for the 5 holdings :)


    1. Hi B,

      I do have intention to diversify my portfolio as it is too overweighted in Stamford Land.
      However, I believe in doing very thorough research before allocating my capital.
      For now, I am still doing my due diligence on a few companies like UE, UMS, CH Offshore which have decent yield and growth potential as well.

      Will just take things as it comes and update my blog as and when. :-)

  3. Isnt the current liability of 126 million bank repayment worrying to you?

  4. Hi ThinkOutOfTheBox,

    Typically property companies will refinance their loans nearer the dates (in this case oct/nov 2012), so should be fine.
    In fact, the new rates now should be quite ok. I don't foresee a big issue with this.

    For comparison's sake, during the depths of the financial crisis, FY2009, the company had $128m current liability of loan repayment too.
    At that time, it's cash was $25m (versus $90m now). It had no income from Dynons Plaza, and weakened hotel ops.
    Company still paid out $0.01 dividend.

    If it survived that, it should have no problems surviving now.
    I am more concerned about how they are going to deploy their capital and possible write downs from Stamford Residence Auckland's sales.