This month, I sold some counters to raise cash for more compelling ideas. Also, increase my stakes in a few of my US counters.
(figure in bracket represents the % the counter is occupying my portfolio based on cost)
Sold
1. Divested ISEC completely at $0.315 even though it has reported a good set of numbers in the latest quarter. Still find this an interesting outfit but decided to temporarily say goodbye to it as I wanted to buy other counters.
2. Sold Hock Lian Seng (2.0%) at $0.47 for a gain of 7.6%. This reduced my stake in the company and it now only occupies only 2% of my portfolio. Continue to believe in its ability to sustain its dividend based on the cash that it has and its strong order book. However, I relatively like my new positions.
Accumulate
1. Re-entered Capital Mall Trust (2.3%) at $2.02 after attending a sharing by Deputy CEO of Capital Mall Asia, Wilson Tan. Basically, he opined that retail mall is here to stay and Capital Mall will continue to be a powerhouse a decade later. With the purchase of CMT, I now own a slew of retail REITs but each for a different reason.
SG Reit - my longest holding for its focus on mall in prime area and its overseas exposure.
FCT - for its focus on sub-urban malls with most of them near MRT stations.
CMT - for not resting on its laurels and continues to take actions to be at the fore-front of retail mall.
2. Added more UMS (4.1%) at $1.05 after it announced a good set of Q3 results. Optimistic about its upcoming performance for the next few quarters and confident that it will at least maintain its dividend.
3. Added Intuitive Surgical (1.1%) @388.85 as I forgot to update my spreadsheet for its stock split! Luckily, bought only 4 shares to round up my total shares to 10. Let's hope it can continue with its splendid growth, then the mistake can become a blessing in disguise.
4. Added Vail Resorts (0.7%) @235.77 as it continues to report good growth from its acquisition. While management guided that 2018 growth might be slower due to the strong growth this year, long term prospect should remain good.
5. Re-entered Priceline (1.0%) @1655.75. I had sold earlier in September at 1840.6, making a loss of 5.1%. Since then the group announces a solid Q3 results which beats its own guidance. However, the market bashed it down due to another muted Q4 guidance. Seeing that Priceline always beats its own estimate, I decided to re-enter Priceline at a better price.
Showing posts with label cmt. Show all posts
Showing posts with label cmt. Show all posts
Tuesday, 28 November 2017
Monday, 28 August 2017
Buy and sell actions in August
Lots of action this month. Divested a few counters but bought quite a bit with the $$$ from divestment of Best World.
Out of Favour
Divested Kingsmen Creatives at the same price I bought. This is the turnaround story that is not working out yet. It reported a poor Q2 and I decided to wait for a clearer picture before re-entering again.
Divested half my stake in ISEC at 0.315. Tiny profit. Still an interesting outfit but its growth isn't exciting enough for it to occupy the middle of my portfolio. Hence decided to hold less and watch how the story unfolds.
Sold Capital Mall Trust at 2.10. It has risen more than 10% from my purchased price. Covered 2 years of dividend. Will recycle cash to other counters that offer higher dividend yield. Might re-enter when it offers a better yield.
Sold Mircro-mechanics at 1.41. Bought purely for its track record for dividend but its price has gone up to 7 years of dividend due to its good performance. Decided to divest it as its dividend yield dropped below 5%. Surprised me with a second rise of dividend this year and with a 8 cents dividend, yield gone up to 5.6%. On hind side, should have continued to hold on to it but actually felt pretty neutral about it. Probably am satisfied with the above expectation return from the counter.
Up the Dividend
Bought a lot more counters especially REIT to increase my annual dividend. Also, I like their outlook from next year onward.
Added Fraser Centrepoint Trust at 2.07. With the AEI of North Point completing this year, next year DPU should increase. Assuming a 12 cents DPU next year, it will translate to 5.8% yield and potential upside if DPU is even higher. Possible catalyst could be acquisition of Punggol Waterway Point.
Added Starhill Global Reit at 0.76. While Orchard office occupancy could still pose a problem, AEI at Plaze Arcade in Australia is expected to be completed in 20181Q. China property would have a more stable distribution with the completion of renovation by 20174Q. Expecting a minimal 4.8 cents DPU next year. This translates to a 6.3% yield.
Bought CDL Hospitality Trust at 1.575. I have bought and sold CDLHT a couple of times for the past 4 years. Win some, lose some and overall still negative. Betting on the improvement of its hotels in the next two years. Assuming a 10 cents DPU, dividend yield is approximately 6.3%.
Bought Mapletree Commercial Trust at 1.55. A retail and office reit which I have missed for the longest time. Its DPU has been increasing since its listing. Estimating a 9 cents DPU which will give a 5.8% yield.
Bought VICOM at 5.81 (cd) and 5.65 (xd). A subdue Q2 results but with immediate effect it is paying out at least 90% of its earning as dividend. It gives more certainty that the company can maintain its dividend for the next two to three years even when revenue dropped due to increasing de-registration of cars. From 2020/21 onwards, it should see an increase in its revenue and income again with more vehicles requiring checking.
Buying into the Sell-down
Quite a number of counters were sold down for the past month, for good or questionable reasons. The sell-down provided me an opportunity to buy some shares of the counter which I think could do well in the future.
Bought Dairy Farm at USD7.45. The company has announced a decent Q2 recently and turnaround seems to gathering speed with good progress in China. The price was beaten down by 2% to 3% in one of the trading day and I deem it as an opportunity to add some.
Bought InnoTek at 0.34. The stock is beaten down because it reported a poor Q2. However, 1H is still an improvement. While the remaining year might remain a challenge, effort has been put in by management to turn the company around. Initiated the position with the belief that the turnaround will come in 2018 or 2019.
Bought mm2 Asia at 0.475. The price has dropped sharply after its GV deal did not get through. Nevertheless, it reported a good 1Q results and I decided to take a punt on it.
Bought HKLand at USD 7.46. Read about its cheap P/B and good results. Hence, decided to take a stake when its price has dropped by about 5% from its recent high.
Bought UMS at 0.995. The price has dropped sharply after guidance of moderate performance in 2H. Nimble a bit as I believe it will maintain its dividend which is a tasty 6%.
Bought 800 Super at 1.12. The price has dropped after a poor Q3. The price weakened further just before it announced its full year results. Took the opportunity to re-enter the counter which I have divested at 1.26 in April.
Bought Singapore O&G at 0.44. The price has dropped sharply after its weak Q2 results. Took a punt on it as company is still profitable and should get better results moving forward.
US Market
Most of my purchase decision for the US markets come from the recommendation of MF subscription services. Unlike my local counters, I did not do as much homework on them. While I think that the valuations of the counters are high, I like their future stories hence my stake in them. All my purchases are small and will slowly wait for opportunity to accumulate more shares in the future.
Bought Vail Resort at USD210.51. Luxury ski resorts operator. It has been growing through acquisition and opportunities to grow is still available. Its plan to keep its resort busy all-year round is working out well with Epic Discovery activities coming on more than one location.
Bought Cognex at USD105. Machine-Vision systems are used all around the world. Growth expected to continue.
Bought Priceline at USD1870. Good Q2 results but market is spooked by its lower Q3 guidance. Taking this opportunity to have one bite on it.
Bought Intuitive Surgical at USD935. Intuitive Surgical have been growing for many years and its recurring income has increased. Decided to buy 2 shares to participate in its growth even though it has a high PE of 44x.
Out of Favour
Divested Kingsmen Creatives at the same price I bought. This is the turnaround story that is not working out yet. It reported a poor Q2 and I decided to wait for a clearer picture before re-entering again.
Divested half my stake in ISEC at 0.315. Tiny profit. Still an interesting outfit but its growth isn't exciting enough for it to occupy the middle of my portfolio. Hence decided to hold less and watch how the story unfolds.
Sold Capital Mall Trust at 2.10. It has risen more than 10% from my purchased price. Covered 2 years of dividend. Will recycle cash to other counters that offer higher dividend yield. Might re-enter when it offers a better yield.
Sold Mircro-mechanics at 1.41. Bought purely for its track record for dividend but its price has gone up to 7 years of dividend due to its good performance. Decided to divest it as its dividend yield dropped below 5%. Surprised me with a second rise of dividend this year and with a 8 cents dividend, yield gone up to 5.6%. On hind side, should have continued to hold on to it but actually felt pretty neutral about it. Probably am satisfied with the above expectation return from the counter.
Up the Dividend
Bought a lot more counters especially REIT to increase my annual dividend. Also, I like their outlook from next year onward.
Added Fraser Centrepoint Trust at 2.07. With the AEI of North Point completing this year, next year DPU should increase. Assuming a 12 cents DPU next year, it will translate to 5.8% yield and potential upside if DPU is even higher. Possible catalyst could be acquisition of Punggol Waterway Point.
Added Starhill Global Reit at 0.76. While Orchard office occupancy could still pose a problem, AEI at Plaze Arcade in Australia is expected to be completed in 20181Q. China property would have a more stable distribution with the completion of renovation by 20174Q. Expecting a minimal 4.8 cents DPU next year. This translates to a 6.3% yield.
Bought CDL Hospitality Trust at 1.575. I have bought and sold CDLHT a couple of times for the past 4 years. Win some, lose some and overall still negative. Betting on the improvement of its hotels in the next two years. Assuming a 10 cents DPU, dividend yield is approximately 6.3%.
Bought Mapletree Commercial Trust at 1.55. A retail and office reit which I have missed for the longest time. Its DPU has been increasing since its listing. Estimating a 9 cents DPU which will give a 5.8% yield.
Bought VICOM at 5.81 (cd) and 5.65 (xd). A subdue Q2 results but with immediate effect it is paying out at least 90% of its earning as dividend. It gives more certainty that the company can maintain its dividend for the next two to three years even when revenue dropped due to increasing de-registration of cars. From 2020/21 onwards, it should see an increase in its revenue and income again with more vehicles requiring checking.
Buying into the Sell-down
Quite a number of counters were sold down for the past month, for good or questionable reasons. The sell-down provided me an opportunity to buy some shares of the counter which I think could do well in the future.
Bought Dairy Farm at USD7.45. The company has announced a decent Q2 recently and turnaround seems to gathering speed with good progress in China. The price was beaten down by 2% to 3% in one of the trading day and I deem it as an opportunity to add some.
Bought InnoTek at 0.34. The stock is beaten down because it reported a poor Q2. However, 1H is still an improvement. While the remaining year might remain a challenge, effort has been put in by management to turn the company around. Initiated the position with the belief that the turnaround will come in 2018 or 2019.
Bought mm2 Asia at 0.475. The price has dropped sharply after its GV deal did not get through. Nevertheless, it reported a good 1Q results and I decided to take a punt on it.
Bought HKLand at USD 7.46. Read about its cheap P/B and good results. Hence, decided to take a stake when its price has dropped by about 5% from its recent high.
Bought UMS at 0.995. The price has dropped sharply after guidance of moderate performance in 2H. Nimble a bit as I believe it will maintain its dividend which is a tasty 6%.
Bought 800 Super at 1.12. The price has dropped after a poor Q3. The price weakened further just before it announced its full year results. Took the opportunity to re-enter the counter which I have divested at 1.26 in April.
Bought Singapore O&G at 0.44. The price has dropped sharply after its weak Q2 results. Took a punt on it as company is still profitable and should get better results moving forward.
US Market
Most of my purchase decision for the US markets come from the recommendation of MF subscription services. Unlike my local counters, I did not do as much homework on them. While I think that the valuations of the counters are high, I like their future stories hence my stake in them. All my purchases are small and will slowly wait for opportunity to accumulate more shares in the future.
Bought Vail Resort at USD210.51. Luxury ski resorts operator. It has been growing through acquisition and opportunities to grow is still available. Its plan to keep its resort busy all-year round is working out well with Epic Discovery activities coming on more than one location.
Bought Cognex at USD105. Machine-Vision systems are used all around the world. Growth expected to continue.
Bought Priceline at USD1870. Good Q2 results but market is spooked by its lower Q3 guidance. Taking this opportunity to have one bite on it.
Bought Intuitive Surgical at USD935. Intuitive Surgical have been growing for many years and its recurring income has increased. Decided to buy 2 shares to participate in its growth even though it has a high PE of 44x.
Sunday, 5 February 2017
REIT Reporting Period Part 1 - Retail REIT
In general, I am satisfied with the reported performance of the REIT that I owned. I will briefly touch on their performance and my take on them.
FCT - 20171Q
Revenue dropped by 6.4% and net property income dropped by 5.7% but interestingly DPU increased slightly by 0.7%. Read somewhere but can't remember where that this is due to REIT Manager receiving their payments in units instead of cash, hence able to maintain the DPU. NAV remains at $1.93 with gearing of 29.7%.
Next 2 quarters should see a further drop in all metrics as average occupancy rate of Northpoint due to AEI will be about 65% compared to the average of 78% for phase 1 AEI. However, things should look better after that with the expected 9% increase in rental reversion after the AEI.
I am pretty confident that FCT should more or less be able to maintain its 2016 DPU. Even with a drop of 5%, the dividend yield based on my average purchase cost of $2.01 will be around 5.5%. Pretty decent I would say and am sure that the manager will continue to look for way to grow the DPU just like it did over the past decade.
Full presentation by company here.
Starhill Global - 2016/17 2Q
Revenue dropped by 2.8%, net property income dropped by 5.4% and DPU dropped by 4.5%. NAV remains at $0.92 with gearing of 35.2%.
Weaknesses are seen Singapore office space in both Wisma and Ngee Ann, retail space in Wisma, Plaza Arcade redevelopment and of course the drag by Renhe Spring Zongbei Property performance.
I think SG Reit will continue to be affected by the weakness in Singapore office space and redevelopment of Plaza Arcade for the rest of the year. It is good that they have resolved the issue of Renhe Spring Zongbei Property. Assuming the continue drop in DPU widen and 2017 payout reduced by 10%, my purchase yield is still about 7% and based on current price of $0.75, yield is about 6.2%. Again, pretty decent but unsure if payout will continue to trend downwards.
Full presentation by company here.
CMT - 2016
Revenue increased by 3.1%, net property income increased by 2.9% but DPU dropped by 1.1%. NAV remains at $1.86 with gearing of 34.8%.
There isn't much catalyst or concern in near term. I expect CMT to continue to sustain its dividend. Funan redevelopment will only be completed in 2019 and that should boost its DPU then.
Full presentation by company here.
My Thinking and Action
Unlike the past decade, growth of retail reit is slowing down. I think it will be able to sustain its dividend but I do not expect much growth. While e-commerce is a concern, I think retail space is still necessary and I do not foresee a huge drop in occupancy rate soon.
With purchase of FCT and CMT over the past few months, I am a tad overexpose in retail reit and am looking to trim some holdings from Starhill Global. While it offers me the greatest yield, I am more attracted to the stability of FCT and CMT at this moment. Among the 3 REIT, current favourite is FCT with its lowest gearing. I am hopeful that its Northpoint AEI will boost its return and would love to have Waterfront Point to be inserted to its portfolio soon.
FCT - 20171Q
Revenue dropped by 6.4% and net property income dropped by 5.7% but interestingly DPU increased slightly by 0.7%. Read somewhere but can't remember where that this is due to REIT Manager receiving their payments in units instead of cash, hence able to maintain the DPU. NAV remains at $1.93 with gearing of 29.7%.
Next 2 quarters should see a further drop in all metrics as average occupancy rate of Northpoint due to AEI will be about 65% compared to the average of 78% for phase 1 AEI. However, things should look better after that with the expected 9% increase in rental reversion after the AEI.
I am pretty confident that FCT should more or less be able to maintain its 2016 DPU. Even with a drop of 5%, the dividend yield based on my average purchase cost of $2.01 will be around 5.5%. Pretty decent I would say and am sure that the manager will continue to look for way to grow the DPU just like it did over the past decade.
Full presentation by company here.
Starhill Global - 2016/17 2Q
Revenue dropped by 2.8%, net property income dropped by 5.4% and DPU dropped by 4.5%. NAV remains at $0.92 with gearing of 35.2%.
Weaknesses are seen Singapore office space in both Wisma and Ngee Ann, retail space in Wisma, Plaza Arcade redevelopment and of course the drag by Renhe Spring Zongbei Property performance.
I think SG Reit will continue to be affected by the weakness in Singapore office space and redevelopment of Plaza Arcade for the rest of the year. It is good that they have resolved the issue of Renhe Spring Zongbei Property. Assuming the continue drop in DPU widen and 2017 payout reduced by 10%, my purchase yield is still about 7% and based on current price of $0.75, yield is about 6.2%. Again, pretty decent but unsure if payout will continue to trend downwards.
Full presentation by company here.
CMT - 2016
Revenue increased by 3.1%, net property income increased by 2.9% but DPU dropped by 1.1%. NAV remains at $1.86 with gearing of 34.8%.
There isn't much catalyst or concern in near term. I expect CMT to continue to sustain its dividend. Funan redevelopment will only be completed in 2019 and that should boost its DPU then.
Full presentation by company here.
My Thinking and Action
Unlike the past decade, growth of retail reit is slowing down. I think it will be able to sustain its dividend but I do not expect much growth. While e-commerce is a concern, I think retail space is still necessary and I do not foresee a huge drop in occupancy rate soon.
With purchase of FCT and CMT over the past few months, I am a tad overexpose in retail reit and am looking to trim some holdings from Starhill Global. While it offers me the greatest yield, I am more attracted to the stability of FCT and CMT at this moment. Among the 3 REIT, current favourite is FCT with its lowest gearing. I am hopeful that its Northpoint AEI will boost its return and would love to have Waterfront Point to be inserted to its portfolio soon.
Saturday, 31 December 2016
Portfolio December 2016
The purchases made this month are mainly due to their reduced price.
1. CMT - Purchased at an average price of $1.88 for a yield of 5.8%.
2. AReit - Purchased at an average price of $2.28 for a yield of 6.7%
2. AReit - Purchased at an average price of $2.28 for a yield of 6.7%
Other trades in December.
3. Added to Best World
4. Added to Fraser Centrepoint Trust
5. Added to 800 Super
6. Added to Thai Beverage
6. Added to Thai Beverage
7. Added to SingTel
8. Divested Dairy Farm to raise cash
9. Divested QAF to raise cash
10. Divested ST Engineering to raise cash
11. Divested LHN due to lack of understanding of business.
8. Divested Dairy Farm to raise cash
9. Divested QAF to raise cash
10. Divested ST Engineering to raise cash
11. Divested LHN due to lack of understanding of business.
Current dividend yield (based on purchase price) is 4.0%.
REIT (31.7%)
Parkway Life REIT
Fraser Centrepoint Trust
Starhill Global REIT
Starhill Global REIT
Capital Mall Trust
Ascendas REIT
CDL Hospitality REIT
Ascendas REIT
CDL Hospitality REIT
Dividend Stocks (21.1%)
Straco
SingTel
SingTel
Valuetronics
MicromechanicsFor Growth, Turnaround and Punting (40.3%)
Growth Stocks (28.6%)
Best World
Raffles Medical
ISO Team
ISO Team
Turnaround (4.5%)
Food Empire
Punt (7.1%)
800 Super
Thai Beverage
ISECThai Beverage
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