Monday, 29 October 2012

Portfolio: October 2012

The month of October saw the market value of my portfolio increase significantly.
This was mainly due to: 
a) Frasers Centrepoint Trust price skyrocketting offsetting slight weakness in price of Stamford Land.
b) Buying in of more United Engineers.

Actions taken in Oct:
 A) Purchased 11 more lots of United Engineers.
 (note: year end results coming, Plus its developments like Changi Bizhub are nearer to completion)
My top 3 holdings are still:
1) Frasers Centrepoint Trust, 5% yield, Holding for stable CASHFLOW
2) Stamford Land, 4% yield, Holding for large % CAPITAL GAIN
3) United Engineers, 4% yield, Holding for large % CAPITAL GAIN
I am now still sitting on some cash, albeit lower quantity, to allow me to redeploy. 
Think will stop buying in the meantime and wait patiently for dips. 
Keeping my fingers crossed for value-unlocking in Stamford Land and United Engineers. :-)


  1. Hi SISG

    I am analysing a stock - Stamford Land and you came to my mind!!! as I've read your previous posts and understand that you are heavily invested in this particular counter. So hopefully, you can give me a better insight on this.

    What do you mean by unlocking its potential value. Do you mean it will sell its hotels at AU and NZ at a premium?? Also what do you make of the Group statement that it will continue to recognize profits from the completed sales of the The Stamford Residences and Reynell Terraces in the next 12 months?

    I've also personally vested in Ascendas Hospitality Trust and if there's one thing that worries me about it is the exchange rate fluctuations of the AUD vs SGD. In my view, the AUD exchange rate might have maxed and it can only go down rather than up against SGD. This way it will affect the revenue which will be reported in SGD. What do you think?


  2. Looking at the latest quarterly reports, it looks unlikely that it will pay out another special dividend by close of financial year as it's quite evident that they've done extremely well for last year.

    If so, where do you think might the attractiveness be at this point in time?


    1. Hi B,

      Thanks for your inputs! Appreciate the various views.

      To answer your questions, my thoughts I shared in May on Stamford Land still stands.

      (a)Stamford's key Assets lie in its 8 Hotels in AU & NZ that are booked at COST.
      They are definitely worth more today, as could be observed from recent sale prices of
      hotels in each nearby area. The question is when? I don't know. Could be 10 yrs!
      The hospitality M&A climate in AU, however, seems to remain strong, with big players
      like ACCOR expanding,Ascendas Hospitality's listing, and tonight's news of Far East MOU
      to acquire Straits' Trdg Rendezvous Hotels in Australia.

      (b) For the group's statement on recognizing profits, I think it all depends on the
      property market in Australia. There is a possibility of a small loss if they are
      pressured to sell out at cheaper prices to raise cash.

      (c) As for FX, I think it is a double edged sword. If AUD weakens against SGD, it might present a better opportunity to buy its stock. PLUS, other buyers might view its prices attractively. I believe the management of Stamford Land who have been in this business for over 20 yrs, should have their methods to hedge/take advantage.

      (d) Overall I still like Mr Ow and team for his conservative management. I will definitely keep a position. But I have reduced my position on Stamford Land to purchase other ventures with higher probability of gain. Will give an update in due course! But been quite busy with my personal life of late.

      Do take a look at Philips Research's Report too. Very informative!

      Cheers! Lets share ideas dude!

    2. Hi SI@SG

      Thanks for your valuable information!!!

      It looks like the NAV to the stock is very high and current price is undervalued at the moment. I feel that the good thing about this is as and when they are able to sell the hotel price, they will be locking in at good profits and investors will benefit from it.

      I see that your portfolio is heavily geared towards property developer, Stamford, UE. Are you looking primarily for capital gains rather than cash flow (of course FCT :) )? just wondering...


  3. Hi B,
    My strategy is to hold on stocks that give reasonable
    Cash Flow (dividend yield) with the possibility of capital gains. UE and Stamford Land gives me that. FCT adds the cash-flow stability element in my portfolio.