Share investment Apr 15 Part 1

It's been just over a year since the last update. There had been many changes since then.

Firstly, a share counter was renamed:

SP Ausnet -> Ausnet Services

I added/initiated the following share counters:

(1) Ascott REIT: initiated position in this after been following its news on-and-off for quite sometime. It's yet another member of the CapitaLand family (as are CapitaMall, CapitaComm and CapitalRetailChina). It invests in "real estate and real estate-related assets which are income-producing and which are used or predominantly used, as serviced residences, rental housing properties and other hospitality assets". Yes, it overlaps a little with Saizen REIT (rental housing properties in Japan) but it has much wider coverage (13 countries), mainly serviced apartments and they are under a number of chains with their own branding. It also provides diversification to my portfolio.

(2) Boustead Singapore: bought more shares as the company is still managed well and recently I received personal confirmation of the use of ESRI (GIS software provider) by a major global oil company. Very recently, they listed their property development arm (now they own 51% of it) and so investors would receive shares in this new subsidiary in lieu of dividends but in my case, it could be still be the latter if they find that it's troublesome to issue such shares to overseas investors. I'm fine with either way. It's a matter of whether I have direct or indirect exposure to this property arm.

(3) Ausnet Services: added more as it still provides attractive dividend yield and is a stable cash generating utility company but recently it's experiencing negative free cashflow yield. Have to watch this carefully.

(4) SATS: initiated position after eyeing it for sometime. Prepared to make this an exception to my "5% dividend yield" rule as I expect it to be a stable dividend-paying company as it is "the leading provider of gateway services and food solutions in the region." It has nearly no debt and free cashflow yield that exceeds its dividend yield. It is the "leading ground handler and in-flight catering service provider at Changi International Airport" and also caters in-flight food to major airlines such as Singapore Airlines, Etihad Airways, Qantas and Cathay Pacific Airways. Yes, its fortune is tied to airlines but maybe less volatile because it's not directly affected by fuel price and many people will still travel in spite of the economy. They may downgrade to a lower class or take low-cost carrier or travel less frequently but travel they must. So if SATS managed to at least maintain their customers, they should still be fine. It'll be a matter of how much they earn. On another note, this share counter provides diversification to my portfolio.

(5) Second Chance Properties: added more as the company is still doing well, providing atttractive dividend yield.

(6) Sembcorp Industries: added more (twice) when price weakened due to bad news by its subsidiary, Semcopr Marine (an O&G related company). The bad news were two-fold: the steep decline in oil price compared to a year ago and related corruption case in Brazil (naturally they denied being involved). Still, this conglomerate generates cash from a variety of sources and I'm confident that it will bounce soon, especially if oil price and its related activities pick up again.

(7) Singapore Technologies Engineering: added more when price weakened.

I sold partially/fully the following share counters:

(1) Re my previous update, SBS Transit share price was on a relentless downward spiral and yet I bought more because of its economic moat (for more details, read my previous update). Later, there was great news: the Singapore government decided that from August 2016 onward, it would (gradually?) own all the bus infrastructure and operating assets and contract out the bus services. In other words, bus operators will have only 1 main role: providing services by operating buses through competitive bidding. Suddenly, share price went up such that my shares are back in the black lol. I took the opportunity to offload some shares so as to reduce my the weighting of this share counter in my portfolio (it was 11% at the last update).

(2) Sold STI ETF once it hit my required 10% capital gain.

As at 24 Apr 15, I have investment in 24 companies (I've also indicated whether their source of business is solely in Singapore only or not):

AIMS-AMP Industrial REIT (Singapore only)
Ascott REIT
Ausnet Services
Boustead Singapore Ltd
Cache Logistics Trust (Singapore only)
CapitaCommercial Trust (Singapore only)
CapitaMall Trust (Singapore only)
CapitaRetailChina REIT
First REIT
Fraser Centrepoint Trust
Kingsmen Creatives
M1 (Singapore only)
SBS Transit Ltd (Singapore only)
SIA Engineering
Singapore Press Holdings
Singapore Technologies Engineering
Saizen REIT
Second Chance Properties (Singapore only)
Sembcorp Industries
Singapore Shipping Corp
Venture Corp

2 Responses
  1. zerachiel Says:

    when i saw the list of companies you had mentioned, i was pondering why i've never heard of them before, took me a while to realize they're not on Bursa KLSE,haha...

    i've done intra day stuff, contra buying and selling, you know, small timer la, last time back in 2008 things were ok, now don't dare to invest much..

    currently with KNM Group, Sapura Kencana and BJ Toto...

  2. Jaded Jeremy Says:

    Oh yes, I bought them on SGX :) I don't trade shares. I buy and hold them for dividends. I seldom sell.