Monday, November 30, 2020

Portfolio Summary for November 2020

As of 30 November 2020


Security# sharesPrice S$%
OCBC Bank1,50010.086.57
ST Engineering4,1003.866.88
Powermatic Data5,0002.415.24
Sheng Siong3,2001.562.17
Genting Singapore11,7000.834.22
China Sunsine31,0000.5056.80
HC Surgical35,5000.396.02
Nam Lee Metal28,2000.334.04
Silverlake Axis40,0000.2654.61
Portfolio Value = $230,146

Trade Actions
- Bought 2,200 shares of Powermatic Data Systems.
- Bought 3,100 shares of Sheng Siong Group.


Security# sharesPrice S$%
OCBC Bank90010.0813.10
ST Engineering1,7003.869.48
CapLand IntCom Trust3,6001.9410.09
Sheng Siong8,7001.5619.60
HC Surgical19,5000.3910.98
Portfolio Value = $69,240

Trade Actions
- None

The stock market has regained its mojo and is heading higher than ever. The DJIA broke the historic 30,000 barrier, though it failed to hold the ground. Opportunities to buy stocks at cheap prices are getting rarer. On the other hand, the bears who tried to fade the rally must be having panic attacks and nursing their wounds now - A Bloomberg article remarked sellers suffered a sizeable US$163 billion loss from shorting the S&P 500 Index for the month of November [link].

While hard to believe, tourism-dependent Genting Singapore caught many by surprise as it reported a much better than anticipated Q3 result after a catastrophic Q2. Its stock price soared on the news. The buoyant mood is simultaneously bolstered by recurring news of positive vaccine trial outcomes. SATS saw its price rose after it revealed it was capable to handle the extremely cold storage required by the vaccine [link].

I was lucky to acquire an additional position in Powermatic Data Systems at the start of the month, before its Return of Capital event. I had betted on the corporate action price gap to narrow after the Ex Date, which it did. Hence on a net basis, I am sitting on a small paper gain.

I also initiated an inaugural position in Sheng Siong Group for my CDP portfolio when the price retreated. The supermarket operator had benefited significantly from the Circuit Breaker, but some investors expect the superb performance not to last. As Singapore enters Phase 3, less people may choose to cook and eat at home. In my opinion, Sheng Siong's management has demonstrated discipline in watching the bottom line while cautiously expanding its turf. So I'm happy to hold this stock for the long term. (I shop at Sheng Siong regularly, so it is satisfying to know a small part of my grocery expense is compensated in the form of dividends.)

We have finally entered the last month of the year. Christmas is approaching, though I doubt the festive spirit will be strong under the shadow of the virus. The world is still reeling from the effect of COVID-19, and most of us should be spending our annual leave stuck on this island. The SingapoRediscovers vouchers are a nice touch by the government to encourage domestic tourism. I am eager to utilize the vouchers to visit some attractions.

December is truly the 'season of giving' for me, as my kiddos' endowment policy premiums come due. This is the second last payment out of a five-year premium plan. It is always a heart ache to see a five-figure sum whisked away from my bank account in an instant. But my wife and I had wanted assurance that we have sufficient funds to cover our two kids' university education. So the money vested now is for a good cause in the future. Moreover, the ROI of the endowment policies is reasonably attractive in today's environment of ultra-low interest rates. So I have no regret.

Lastly, I will be topping up my CPF Retirement Sum to take advantage of the higher CPF interest rate, as well as the available income tax rebate. It is an annual ritual for me. Are you planning to do the same?

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