December Update

Cash Portfolio

In December, I have added 3 new positions to my portfolio, Hour Glass, Inter Roller and Pokka. 

Hour Glass is the second luxury watch counter that am investing in.  The first being Sincere (CPF) which I have sold off after making a 60% return.  The counter continued to rise and I would have a 3-bagger if I still hold on to Sincere.  After comparing both business and valuation, I decide to purchase 5 lots at $1.64 (I miss the $1.44 price earlier in the year) and luck was on my side as news on acquisition of Sincere causes the price of Hour Glass which was trading at a discount to Sincere to spike up.  I am positive of Hour Glass FY2007 performance and expect an even better showing for FY 2008.

Inter Roller’s main business is handling of cargo in airport.  I knew the company since 2006 and am positive about the management and their business.  However, I have not bought the counter before as its valuation is steep.  The company reported a large drop in profits in 20071H and this causes its share price to plummet too.  The steep drop in profit is attributed to slow in getting contract for the year.  I expect this to be a one-off event and view the present price of $0.625 a good one to hold a very small stake of 5 lots.  If the price slides further on announcement of final year results, I will pick up another 5 lots of this well managed company.

I have got to know about Pokka from a forumer dydx from Wallstraits this year.  Of course, I know and have drunk Pokka drinks (especially green tea) before this year.  The company’s results has not been consistent but has done exceptionally well in 2007.  It final results should be impressive which makes current price of $0.47 valuing the company only at a PE of 6.1 (or 4.2 after deducting cash).  I THINK the company might have found the correct strategy in its expansion plan and if this is true, future is bright.

 
CPF Portfolio

Received dividend of $328 from Metro.  Thank you.