Share investment Mar 19 Part 1
It's been less than a year since the last update. I decided to update this in March because usually I'm busier in April with actuarial projects (although that may change soon).
These were the companies I first invested in since the last update (I'm ignoring additional purchase of existing share counters):
(1) CapitaLand
From Motley Fool SG:
" Singapore’s CapitaLand stands tall as one of Asia’s largest real estate companies. The company has a presence in over 30 countries and develops, owns, and manages integrated developments, shopping malls, serviced residences, offices, homes, real estate investment trusts (REIT), and funds.
Why Buy:
From Motley Fool SG:
" Established in 1968 as the Development Bank of Singapore, DBS Group Holdings is today a leading financial services group in Asia with over 280 branches in 18 markets.
Why Buy:
(3) iFast Corporation
I have known iFast for a long time because I was one of the earlier batches of investors who used their unit trust platform, which offered substantially cheaper sales charges than, say, the banks and carried many more unit trusts. They may not had been the first to do so but they were one of the most successful, if not the best, platform providers.
However, I soon closed that account because they started charging recurring fee. Of course that's good for their shareholders (they hadn't listed yet though) but bad for users and so some of us moved to their competitors who didn't have such recurring fee.
That's on the retail side. They also have corporate clients. This is what Motley Fool SG says:
" iFAST Corporation is a leading internet-based investment products distributor that is based in Singapore. It serves financial advisory firms, financial institutions, banks, multinational companies, and individual investors.
Why Buy:
From their website:
" Mapletree Industrial Trust ("MIT") is a real estate investment trust listed on the Main Board of Singapore Exchange. Its principal investment strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore and income-producing real estate used primarily as data centres worldwide beyond Singapore, as well as real estate-related assets.
MIT’s property portfolio comprises 86 industrial properties in Singapore and 14 data centres in the United States of America (40% interest through the joint venture with Mapletree Investments Pte Ltd). "
Data centres. That's the key point, I believed.
(5) Nordic Group
From Motley Fool SG:
" Nordic Group is a leading provider of automation system integration solutions, vessel maintenance, repair, and overhaul (MRO) services, precision engineering services, scaffolding services, and insulation services.
Why Buy:
(6) OCBC
From Motley Fool SG:
" Formed in 1932, the Singapore-based Oversea-Chinese Banking Corporation is one of the largest financial services groups in Southeast Asia by assets, and operates in 18 countries and regions.
Why Buy:
From Motley Fool SG:
" Malaysia-based Top Glove is the world’s largest rubber glove manufacturer. Its products are exported to nearly 200 countries around the world.
Why Buy:
As at 9 Mar 19, I have investment in 32 companies (I've also indicated whether their source of business is solely in Singapore only or not):
These were the companies I first invested in since the last update (I'm ignoring additional purchase of existing share counters):
(1) CapitaLand
From Motley Fool SG:
" Singapore’s CapitaLand stands tall as one of Asia’s largest real estate companies. The company has a presence in over 30 countries and develops, owns, and manages integrated developments, shopping malls, serviced residences, offices, homes, real estate investment trusts (REIT), and funds.
Why Buy:
- CapitaLand has a vast and diversified property portfolio.
- It has a solid stable of investment properties that provide recurring income (read: dividends)
- CapitaLand’s shares are priced at a discount to book value "
From Motley Fool SG:
" Established in 1968 as the Development Bank of Singapore, DBS Group Holdings is today a leading financial services group in Asia with over 280 branches in 18 markets.
Why Buy:
- Going digital in a big way, potentially bringing down operating costs materially
- Attractive valuation
- Potential tailwind from rising interest rates "
What popped my eyes when this recommendation first came out was the dividend yield of 5%. That's attractive for a bank stock.
(3) iFast Corporation
I have known iFast for a long time because I was one of the earlier batches of investors who used their unit trust platform, which offered substantially cheaper sales charges than, say, the banks and carried many more unit trusts. They may not had been the first to do so but they were one of the most successful, if not the best, platform providers.
However, I soon closed that account because they started charging recurring fee. Of course that's good for their shareholders (they hadn't listed yet though) but bad for users and so some of us moved to their competitors who didn't have such recurring fee.
That's on the retail side. They also have corporate clients. This is what Motley Fool SG says:
" iFAST Corporation is a leading internet-based investment products distributor that is based in Singapore. It serves financial advisory firms, financial institutions, banks, multinational companies, and individual investors.
Why Buy:
- Strong network effect in place to protect its competitive position
- Presence of a growing stream of recurring revenues
- Innovative management with skin in the game "
From their website:
" Mapletree Industrial Trust ("MIT") is a real estate investment trust listed on the Main Board of Singapore Exchange. Its principal investment strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore and income-producing real estate used primarily as data centres worldwide beyond Singapore, as well as real estate-related assets.
MIT’s property portfolio comprises 86 industrial properties in Singapore and 14 data centres in the United States of America (40% interest through the joint venture with Mapletree Investments Pte Ltd). "
Data centres. That's the key point, I believed.
(5) Nordic Group
From Motley Fool SG:
" Nordic Group is a leading provider of automation system integration solutions, vessel maintenance, repair, and overhaul (MRO) services, precision engineering services, scaffolding services, and insulation services.
Why Buy:
- Track record of growth in a troubled oil & gas industry
- Increasing share of recurring revenue
- Signs of smart use of capital "
However, lately, this company is struggling amidst weak oil prices and uncertainty in economies. Despite these, there are bright spots in the company's financial position and also expected to improve productivity by "consolidating its business activities in one physical location".
From Motley Fool SG:
" Formed in 1932, the Singapore-based Oversea-Chinese Banking Corporation is one of the largest financial services groups in Southeast Asia by assets, and operates in 18 countries and regions.
Why Buy:
- Rising interest rates are likely to benefit its business
- It has a high likelihood of being able to grow its business in the years ahead
- The valuation is attractive in relation to history "
From Motley Fool SG:
" Malaysia-based Top Glove is the world’s largest rubber glove manufacturer. Its products are exported to nearly 200 countries around the world.
Why Buy:
- Riding on long-term trend of steady growth in global glove demand
- Has a good corporate culture, and management team with skin in the game and long tenure
- Solid historical business growth "
This company's business is still doing well but the huge cloud over it is its legal suit against "two Aspion directors, namely, Low Chin Guan and Wong Chin Toh, and Adventa Capital (which sold its shares in Aspion to Top Glove), alleging conspiracy to defraud". Basically, there was strong suspicion that Aspion's financial position had been severely overstated, which meant Top Glove had significantly overpaid for its acquisition, which is what they're claiming for now.
Shares that I sold:
(1) Ausnet Services
Was going to be delisted and so I closed the position.
(2) 800 Super Holdings
Was recommended by Motley Fool SG but subsequently they advised to sell it because the premise of their recommendation evaporated:
" The likely disappearance of pricing power, coupled with a shaky balance sheet, falling operating cash flow, and the shock loss in the fourth quarter of FY2018, make us think that the risks with 800 Super have increased significantly. In particular, the loss suffered by 800 Super in the reporting quarter and its increased debt level could, in our view, cause the company’s creditors to be concerned over the health of the business and heap pressure on the company. "
(3) M1 Limited
Was going to be delisted and so I closed the position.
(4) HongKong Land
For some reasons, instead of depositing the USD dividends straight into my SG bank account, they sent me cheques in Malaysia. It is so troublesome to deposit foreign denominated cheques in Malaysia: takes up to two months and the bank charged fees per cheque, equivalent to my 3 lunches! So I sold off this share counter.
AIMS-AMP Industrial REIT (Singapore only)
Ascott REIT
Boustead Singapore Ltd
Cache Logistics Trust (Singapore only)
CapitaCommercial Trust (Singapore only)
CapitaLand
CapitaMall Trust (Singapore only)
CapitaRetailChina REIT
ComfortDelGro
DBS
First REIT
Fraser Centrepoint Trust
iFast Corporation
Keppel Corp
Kingsmen Creatives
Mapletree Industrial Trust
Nordic
OCBC
SATS
SIA Engineering
Singapore Press Holdings
Singapore Technologies Engineering
Second Chance Properties
Sembcorp Industries
Silverlake Axis
Singpost
Singapore Shipping Corp
SingTel
Top Glove
UOB
VICOM (Singapore only)
Venture Corp
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