Cash Equity
| Security | # Shares | Price | Portfolio % |
|---|---|---|---|
| DBS Group | 400 | $26.41 | 26.80% |
| OCBC | 900 | $11.54 | 26.34% |
| SATS | 2,000 | $4.82 | 24.45% |
| LHT Holdings | 15,500 | $0.565 | 22.21% |
| Old Chang Kee | 100 | $0.775 | 0.20% |
SRS Equity
| Security | # Shares | Price | Portfolio % |
|---|---|---|---|
| SGX | 1,300 | $7.92 | 21.65% |
| OCBC | 900 | $11.54 | 21.84% |
| Sheng Siong Group | 8,700 | $1.16 | 21.22 |
| SingTel | 2,000 | $3.33 | 14.01% |
| CapitaCommercial Trust | 3,000 | $2.06 | 13.00% |
| Frasers Commercial Trust | 2,446 | $1.61 | 8.28% |
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
SATS
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.
Savings
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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