Monday, May 31, 2021

Portfolio Summary for May 2021

As of 31 May 2021


Security# sharesPrice S$%
OCBC Bank1,50012.367.13
ST Engineering4,1003.876.10
Powermatic Data5,0002.665.12
Sheng Siong6,4001.593.91
Genting Singapore11,7000.8453.80
China Sunsine31,0000.546.44
HC Surgical35,5000.486.55
Silverlake Axis60,8000.2455.73
Portfolio Value = $259,974

Trade Actions
- Sold 28,200 shares of Nam Lee Pressed Metals.


Security# sharesPrice S$%
OCBC Bank90012.3615.24
ST Engineering1,7003.879.01
Sheng Siong8,7001.5918.95
HC Surgical19,5000.4812.82
Silverlake Axis21,3000.2457.15
Portfolio Value = $72,988

Trade Actions
- Bought 21,300 shares of Silverlake Axis.

Another month has passed in the blink of an eye. The selldown in May did not materialise to a big extent, which was admittedly disappointing due to a dearth of suitable buying opportunities. Market was rangebound, with no impetus to climb or decline. Talk of the town has been around the volatility in Bitcoin price, and whether the U.S. Fed will be forced to raise rates to counter inflation. (At the moment, it looks to be no.)

A few conglomerates reported their fiscal results in May. Of particular note was SATS, which would have reported a heavy loss if not for government support. The board had opted to omit the final dividend, which (to me) was a prudent move. The company should not needlessly compromise its current cash-rich position. It is anybody's guess how long the COVID-19 pandemic will last.

SingTel booked an exceptional charge of S$1.18 billion to write down its struggling Amobee and Trustwave divisions, while its new CEO cited plans for a "strategic reset" to drive recovery and growth for the telco giant. Research analysts had dubbed this as a "kitchen-sinking exercise" and are generally optimistic on the future direction. I look forward to a successful execution of the new strategy.

The Hour Glass reported resilient fiscal results despite the pandemic. More pleasantly, the board declared a final dividend of 4 Singapore cents per share, which is double of the previous year. The stock price had soared as a result.

Nam Lee Pressed Metals reported a good set of results. 1H FY2021 revenue was up 63% YoY, gross profit was up 139% YoY. The stock price reacted positively to the news. However, as the company no longer fits into my investment mandate, I squared off my position with a tiny profit.

I also nibbled some Silverlake Axis shares for my SRS portfolio. The most recent result is still palatable, and as the company described in its 3Q FY2021 highlights, "the industry has come to realise that there is no quick end to the pandemic and they have started to budget and plan for an expansionary future". This bodes well for the company.

Stocks aside, it is depressing to see Singapore still mired in the pandemic with a string of unlinked community cases daily, despite the heightened measures. I can't help but ponder why Hong Kong, the European Union and the U.S. were not particularly hard hit by the same B1.617.2 variant. Is it ill luck of the draw, or have Singaporeans been too complacent and negligent in combating the spread of the virus?

It is my wish - which I am sure is everybody's - for Singapore to overcome this current wave of transmission. As the Prime Minister and Minister Lawrence Wong have indicated, COVID-19 may become endemic and impossible to get rid of completely. We will have to live with it. Swab and booster jab could be a fair routine in the new normal.

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