2007 3rd Quarter Report

It has been 16 months since I made my last entry.  I do need to make more effort to update this journal. 

I decide to take on a new approach in dealing with my investment portfolio.  Instead of just thinking that this is an ad-hoc interest, I will take that I am having a business that holds interest in Singapore equity.  Hence, I will do at least a quarterly report on my company and will also provide update on my business decision (buy and sell decision).

3^rd Quarter Performance

Last quarter sees my cash portfolio drops by 10.2% and CPF portfolio increases by 4.6%.  The drop in my cash portfolio is largely attributed to two wrong moves I made: purchasing MMP Reit, Guthrie and FSL in July and subsequent selling of these counters during the meltdown on 17^th August.  This again surfaces my lacking in the control of my emotions in decision making.  As for my CPF Portfolio, the gain is attributed to the gain in Jardine C&C, Aberdeen China, GEM and Lion Capital Korea Funds.

Buy and Sell decision for 3^rd Quarter

Cash Portfolio
Besides the three mentioned counters which I have bought and sold, I have sold Cougar after receiving the dividend, making a gain of $341.01.  Again if I have hold on to the counter a little longer and not sold at the meltdown, the gain would be heftier.  With the rise in valuation over September, I have decided to raise my cash position.  I have pared down my stake in KODA and sold Beauty China.  I will continue to keep Beauty China in my radar.

CPF Portfolio
I have taken profits from Aberdeen China, Schroder Euro Fund, Jardine C&C and SIA Engineering.  While the counters might still have some upsides in the next few months, the sharp rise in the price in such a short period made them a riskier investment for me.  Again, they are still in my radar and I will purchase them if the opportunity appears.

9^th Month Performance

The first 9 months of this year saw my cash portfolio increases by 52.7% and CPF portfolio by 13.7%.  Overall, I am satisfied with this performance especially considering the two crashes in February and August.

Buy and Sell decision for 20071H

As I have not reported on my investment in the first half of the year, I will highlight some of the buy and sell decisions in the first half of the year.

Cash Portfolio
I have sold off my positions in China Flexible Packaging and People’s Food in June.  For the former, it was still at a very low valuation.  It is frustrating to hold this counter as it hardly moves even when the whole market has moved.  Eventually, it might move to its value but with so many other possible positions I can take up, I decide to sell it off.  People’s Food is a company which I have wanted to hold long term.  The decision to sell it come after the company announced that they faced short term problem in the shortage in supply of pig which will drag down its profitability for the next 2 quarters.  I still believe the long term prospect of the company but will wait for the correct opportunity to purchase it again.

CPF Portfolio
OSIM was sold off in the beginning of the year after holding the counter for slightly more than 3 years.  I should have sold it off earlier last year when the company faced problem after consolidating the accounts of Brookstone.  However, I took confidence from Ron Sim purchase of the company shares and held on to the shares believing in a fast turnaround.  This did no realize and the company suffers a larger than expected loss for FY2006.  I still made a profit of $2500 over the 3 years but that profit could easily be $8000 if I have sold it out when the fundamental has changed.

I sold Sincere after holding it for a year.  Made a 60.8% gain (including dividend) over a year.  The primary reason to sell Sincere was to raise cash for purchase of Jardine C&C and SIA Engineering.