Tuesday, April 30, 2019

Portfolio Summary for April 2019

As of 30 April 2019

Cash Equity

Security # Shares
LHT Holdings 15,500
OCBC 900
Old Chang Kee 100
Portfolio Market Value = $23,996

SRS Equity

Security # Shares
Sheng Siong Group 8,700
Frasers Centrepoint Trust 3,000
CapitaCommercial Trust 3,000
Frasers Commercial Trust 2,408
SingTel 2,000
SGX 1,300
Portfolio Market Value = $41,449

In April, I did a few trades to reposition my portfolio with a new investment focus.

Trade Actions

Keppel Corp
I sold my position in Keppel Corp at $6.81 apiece. I bought the stock a few years ago, before the company entered the oil price crisis. Thankfully, Keppel managed to climb out of the mess without permanent damage. I was able to exit with a small profit, and a few years of dividend.

SembCorp Industries
I sold my position in SembCorp Industries at $2.68 apiece. I am disappointed with the company because of the dividend cut, presumably to conserve cash. It is unknown whether the management could have taken more drastic steps to curb the loss in SembCorp Marine. After years of hoping for a turnaround miracle, I decided to throw in the towel and move on.

Singapore Exchange
I bought 1,300 shares of SGX for my SRS portfolio at $7.38 apiece. I had expected the lacklustre performance in the equity trading revenue, but was surprised by the strong showing in the derivative trading revenue. With a sizeable cash hoard and zero debt, I believe SGX is robust enough to sustain the dividend payout, and at the same time develop new growth segments.

LHT Holdings
I bought 15,500 shares of LHT Holdings for my cash portfolio at an average price of $0.645 apiece. LHT is a Singapore based manufacturer of wooden pallets, boxes and crates. It also produces related products such as timber flooring and doors. This is a micro cap with a dull but stable (and profitable) business.


The May 2019 Singapore Savings Bond (SSB) has an average yield of 2.16% p.a. What is particularly attractive about this month's issue is that the bond offered an interest rate of 1.95% p.a. for the first three years - on par with the best fixed deposit rate in the market. While I did not participate, I helped my Mum to subscribe for her inaugural issue of the SSB.

Looking Ahead

While market prices have generally soared, pockets of opportunity still abound. I will be looking to take on a few more positions in May 2019.

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Friday, April 5, 2019

eBook on Avoiding Troubled Companies

Well-known local corporate governance advocate Professor Mak Yuen Teen had released an eBook titled "Avoiding Potholes in Listed Companies".  Inside the book, Prof Mak and his co-author NUS Business School Adjunct Associate Professor Richard Tan listed several red flag and warning signs that retail investors can take heed, to recognize companies in trouble.

I am still reading through, but thought it would be good to share.  If you are interested to read the eBook, you can download it from Prof Mak's website www.governanceforstakeholders.com.

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