Tuesday, 27 November 2012

Portfolio: November 2012

The month of November saw the market value of my portfolio drop.
This was mainly due to: 
a) Reduction in my FCT & Stamford Land holdings.
Actions taken in Nov:
A) Purchased 12 more lots of United Engineers. 
B) Sold 10 lots of Frasers Centrepoint Trust.
C) Sold 50 lots of Stamford Land. 
My top 3 holdings are:
1) United Engineers, 4% yield, Holding for large % CAPITAL GAIN
2) Frasers Centrepoint Trust, 5% yield, Holding for stable CASHFLOW
3) Stamford Land, 4% yield, Holding for large % CAPITAL GAIN 
Strategy Commentary: 
United Engineers is now my top holding for a few reasons
I took a walk at Changi Bizhub area last weekend and noticed a few things:
(a) Changi City Point was overflowing with Traffic. Both Human & Vehicles. 
     Traffic spilled over to UE Bizhub's NTUC & car park respectively.     
(b) Capri by Frasers, a business hotel nearby seem to be at full occupancy. 
     It is a great locality to build a business hotel, come to think of it. 
     One MRT stop to the Airport, close to a Big Shopping Mall too.
     UE's 300-room Park Avenue Changi should likely do as fine. 

(c) 2 Catalysts to Cashflow coming in 2013. 
     (i) Though UE Bizhub Changi is far from occupied, the income potential seems huge 
         from the setup there. 
         There will be steady recurring revenue when occupancy stabilizes next year.
     (ii) SPVs holding Orchard Gateway will be sold to OCBC next year. 
          This will likely help in its debt reduction. 

 I sold off some FCT & Stamford Land to increase my cash position. 
This is a move I strategized as I wanted to have more cash for a possible RIGHTs ISSUE for FCT's 
injection of Changi City Point.
If no Rights Issue is required, these funds will be on standby buy more UE or FCT at cheaper 
prices if the market does become irrational.  
Meantime, keeping my fingers crossed for value-unlocking in Stamford Land and United Engineers. :-)

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