Share investment Jun 12 Part 1
Here's the latest update on my investment in shares (last update was in Feb 12):
(1) I finally managed to sell Suntec REIT at a very slight profit. Before that, I found more reasons to sell it:
(a) The manager, ARA Asset Management, sold almost all of its holding in the REIT at the same time. These units were distributed to them as payment (in lieu of cash) for their service. Naturally shareholders were a little upset about them being sold at one-go which caused a knee-jerk decrease in share price. ARA defended the use of units as payment because it aligned the interest of the manager with the shareholders but there is no such alignment if they sell most of the units!
(b) The % of the REIT's income that went to the manager (as reported in The Edge) was clearly above most of the REITs in the market. Tsk tsk tsk.
(2) With Suntec REIT gone, I had no position in any of the REIT that owns malls in Singapore. So, when market went down significantly due to very poor job growth result in US, I took the opportunity to go back into CapitalMall Trust, which is like the "blue chip" among its peers.
(3) I've also added more into SBS Transit after its shares price dropped to more than 14% lower than my average purchase price at that time. I tried to look for news to determine what was dragging it down (and still is!) but there was no news that was good enough to explain it. Anyway, I take comfort that it still has sound business in favourable environment.
(4) During the market sell-down in (2) above, I've also seized the opportunity to initiate position in SingTel, the largest telco in Singapore. My interest in the company is its stable business that has overseas exposure. I'm a little concerned about how Singapore-centric are the companies I've invested in and so I'm always on a lookout for shares of companines that generate revenue overseas (like SP Ausnet).
(5) So, as at 28 Jun 12, I have investment in 13 companies:
(1) I finally managed to sell Suntec REIT at a very slight profit. Before that, I found more reasons to sell it:
(a) The manager, ARA Asset Management, sold almost all of its holding in the REIT at the same time. These units were distributed to them as payment (in lieu of cash) for their service. Naturally shareholders were a little upset about them being sold at one-go which caused a knee-jerk decrease in share price. ARA defended the use of units as payment because it aligned the interest of the manager with the shareholders but there is no such alignment if they sell most of the units!
(b) The % of the REIT's income that went to the manager (as reported in The Edge) was clearly above most of the REITs in the market. Tsk tsk tsk.
(2) With Suntec REIT gone, I had no position in any of the REIT that owns malls in Singapore. So, when market went down significantly due to very poor job growth result in US, I took the opportunity to go back into CapitalMall Trust, which is like the "blue chip" among its peers.
(3) I've also added more into SBS Transit after its shares price dropped to more than 14% lower than my average purchase price at that time. I tried to look for news to determine what was dragging it down (and still is!) but there was no news that was good enough to explain it. Anyway, I take comfort that it still has sound business in favourable environment.
(4) During the market sell-down in (2) above, I've also seized the opportunity to initiate position in SingTel, the largest telco in Singapore. My interest in the company is its stable business that has overseas exposure. I'm a little concerned about how Singapore-centric are the companies I've invested in and so I'm always on a lookout for shares of companines that generate revenue overseas (like SP Ausnet).
(5) So, as at 28 Jun 12, I have investment in 13 companies:
- Second Chance Properties
- AIMS-AMP Industrial REIT
- Boustead Singapore Ltd
- CapitaCommercial Trust
- CapitaMall Trust
- CapitaRetailChina REIT
- First REIT
- M1
- SBS Transit Ltd
- SIA Engineering
- SP AusNet
- Singpost
- SingTel
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