Wednesday, July 31, 2019

Portfolio Summary for July 2019

As of 31 July 2019

Cash Equity

Security# SharesPricePortfolio %
DBS Group400$26.4126.80%
LHT Holdings15,500$0.56522.21%
Old Chang Kee100$0.7750.20%
Portfolio Market Value = $39,425

SRS Equity

Security# SharesPricePortfolio %
Sheng Siong Group8,700$1.1621.22
CapitaCommercial Trust3,000$2.0613.00%
Frasers Commercial Trust2,446$1.618.28%
Portfolio Market Value = $47,552

July went by in a jiffy.  Most of the time, I was just watching the market, which persistently remained at the high end of valuation.  I did execute one trade though.

Trade Actions

I picked up 2,000 shares of SATS at $5.01 apiece.  (Could have bought cheaper had I waited a few more days.)  Investors were spooked by the 14% drop in net profits, which saw its stock price dived over 6% in a day.  In my view, SATS is simply facing temporal, cyclical headwinds.  The underlying business looks intact.  (SATS enjoys an exclusive duopoly with dnata in servicing airlines at the Singapore Changi Airport.)  The company has a sizeable $400 million cash hoard and was still able to generate $84 million of free cash flow for the latest quarter despite the profit drop.  I will accumulate more if the share price falls further to $4.50.  The 13 cents dividend that went ex on 29 July certainly helped to reduce my purchase cost.


July's Singapore Savings Bond (SSB) (ID: GX19080E) has an average yield of 2.01% p.a (link).  As mentioned in my previous post, the SSB yield is expected to get worse.  With the widely anticipated Fed rate cut, the yield will likely sink below 2%.  I am guessing 1.95% for next month's issue.  If you are considering to park your money in SSB, there are fixed deposit products in the market with a shorter tenure and equally competitive yield.  MoneySmart blog has a summary of these products (link).

Looking Ahead

August is special for my family, as my older son, wife and I celebrate our birthdays this month.  This means I have to set aside a higher budget for expenses.  What remains will go into my money jar for investments.

As the seasonal reporting winds to a close, I hope there will be chances to pick up other quality stocks unfairly sold down due to misaligned investor expectations, just like SATS.

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