Monday, 14 July 2014

SRS Portfolio - 30 June 2014

For the month of June, the SRS portfolio received a dividend of $255 from China Merchant and an interest of $4.07

The position in UMS was divested in July. The divestment post is here.

As of 14 July, I am holding a record $111,484 in cash waiting to deploy in bigger quantum into new positions. As i have shared with you previously, this SRS portfolio is going to focus on more concentrated positions with a stronger focus on growing the net worth than generating passive income. 

I will deploy the passive income strategy on my wife's SRS account which i have been contributing on her behalf.

What is my performance so far? According to my post on 1 July 2013, the MOIC (Mulitple over Invested Capital) or ROI (Return on Investment) was standing at 1.22x. This year, i did the same analysis and added a new IRR figure which is estimated as i didn't track the exact ins and outs of the cashflows. So please take it with a pinch of salt. The ROI now stands at 1.32x and the IRR at 7%.

Happy SRSing

Tuesday, 1 July 2014

UMS Holdings Ltd



UMS hit my cut loss point today. I would have cut it earlier had i been more vigilant in monitoring the stock but i was busy travelling for work in May and holidays in June. The major shareholders and CEO has sold a fair bit last month so perhaps it is time to say goodbye.

UMS has treated me very well. It has given me $1,050 in dividends since i first bought it in 9 March 2012. My capital gains is about 62% above my cost price but as i mentioned in earlier posts, i should put in larger quantum and not the meager sum.

So long for now.

Happy UMSing 



Thursday, 12 June 2014

SRS portfolio - 31 May 2014

Seemed like a good month for my SRS portfolio as it received dividends from Overseas Education and UMS Holdings


QT Vascular also performed spectacularly but I have since sold it in June as it has gone beyond my "understanding" only to see it moved even higher.... (the sale was mentioned in my Facebook page). 

Anyway it was a good return for me generating more than 35% in one month.  

UMS holdings suffered from a double whammy in June where Applied Materials and also the CEO sold down their shares significantly. I haven't had time to analyze their moves but definitely it doesn't bode well for the Company when insiders are cashing out. I will decide if I want to sell the shares after my holidays :-P

Happy SRSing 

Monday, 2 June 2014

QT Vascular ("QTV")

I first evaluated the above Company in my IPO blog. The post is here.

I have since added 50 lots of QTV to my SRS account. The post is here

My original intention was to accumulate slowly but somehow the intention was never realised. The share price has gone through the roof after 2 reports came out.

UOBKH issued a original and updated report with a target price of $0.51. The report courtesy of SG Market News.

CIMB then initiate coverage with an even more aggressive target price of $0.64! The report is here  courtesy of SG Market News.


The counter has risen 37% since my entry once month ago... if only all my investments perform as such ah...  ^_*

Happy SRSing

Saturday, 10 May 2014

SRS Portfolio - 30 April 2014

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I received my SRS statement for April. My small positions in Overseas Education and UMS holdings continued to do very well. They have almost doubled the original cost.

UMS Holdings


UMS has done extremely well, defying all my original expectation and it just announced a set of quarterly profits that was 63% better than the quarter one year before! 


As mentioned to you in my previous post, I will need to invest a substantial amount in such good company in order to retire early and not the meagre 10,000 shares. On the other hand, i wonder if precisely of the small position, that is why i am extremely patient with them and allowed them to run for the long term (since it is not going to move a needle).  haha ^_^ 

This stock pays a dividend of 1 cents per quarter! So probably the learning point will be to keep adding on this position over time, which I didn't.

Overseas Education


Another nice looking counter since my entry point. Probably i can have the same key takeaway, that is to keep investing in good companies over time (rather than trying to keep searching for new companies to invest in).

QT Vascular


Recorded my first purchase of 50 lots at 33 cents. I will probably add on to this position slowly but this is a higher risk bet which i am taking given that it is still in development phase. This company is loss making and not paying any dividends, so i would definitely not classify this as a fundamentally sound stock. Not for the "value-investors" as well.

That is all for now. Happy SRSing

Tuesday, 6 May 2014

The path to millionaire portfolio ?


It was the May Day public holiday. My deal maker friend just parked his shining Lambo sports car. It was a far cry when I  first knew him 8 years ago. He has since risen to be one of the top deal makers in Singapore and now stays in a big bungalow with a swimming pool. 

He shared with me some of his thoughts behind his success, which I further distill it here for easy understanding. 

Is the "secret" of his success applicable assuming you are just destined to be a normal investor like me? I gave it a long and hard thought and felt that it can be distilled into a few lines. 

1. Focus on your core area of competence. 
2. Once you have done your due diligence on your target, put all your eggs  in it. 
3. Let go of the target when the growth story is no longer there. 
4. Repeat point 1 and 2 again a few times.

Let me give you a simple illustration for better understanding of how I should apply it to my SRS portfolio in "theory". 

Assuming I have done my homework and identified Breadtalk or Riverstone or UMS as a stock that I like very much because of sound fundamental reasons. I will build up a lot of that position (say $100k) in my SRS account rather than a small tiny position of $5k which bears no significance even if it rises 100%. 

Assuming I am right, the stock doubled in value to $200k and I identified another good counter. I will then reinvest that $200k into the next counter. Again, assuming I am right, the counter will double to $400k. From a start up capital of $100k I repeat this process 4x over 10 years and I will become a millionaire. Obviously I am using an extreme example of puting one egg in the basket but hope you get the idea behind it. 

Is the methodology simple? Yes. 
Is it tough to implement ? Yes
Is this strategy for everyone? No. It should be for someone who has a higher risk profile and tolerance and who knows exactly what he is doing. 
Should I do it? Why not. To risk $100k and get back $1m at the end sounds absolutely fantastic. (Assuming no new capital injection)

What stock should I buy now? One honest answer is that I don't know. Many of my old favorites have run up spectacularly. Even overseas education and UMS are doing really well but as I said, having a $5k position in both that stock is not going to make me rich. 

I am currently accumulating QT Vascular for a long term play. (Say at least 6 months to one year). Just bought my first tranche of 50 lots at 33c for my SRS account on last Friday. My second buy order of 50 lots at 30c was not filled on Monday. 

This strategy and this stock is not for everyone and it definitely don't qualify as a fundamentally sound stock so I hesitated a lot not knowing if I should share the name of the Company. 

However, I know some of the shareholders who have done a lot of DD into this company. They are very long term players and it does hold certain promise if the product roadmap is approved by FDA as planned. 

We shall see how this strategy pans out in the coming year. I will share more on my thoughts next time. I am currently overwhelmed with work...(what's new?). 

As for you (if you have been reading from the first paragraph till now), find a few stocks that you believe in and buy it big! And hopefully, it will be a good retirement story for your grandchildren next time!

Happy SRSing. 

Saturday, 12 April 2014

SRS portfolio - 31 March 2014

It has been a while since i post on my blogs. Hope all of you are doing fine but i have been neglecting my retirement plan and totally out of touch with the market.


This is the status report as of 31 March 2014 where i reported the loss from the sale of China Environment. The loss was a heavy one given the larger exposure but however, it was probably a good "cut". 


I received the 3 annual reports for my SRS portfolio in April. Here are my initial thoughts without going through the annual reports. I will be reading the reports when i have time... (which unfortunately have been very evasive). 

UMS

I have to tell you this is one of my most pleasant experience investing in a tech stock. I first invested in UMS on 6 Sep 2012. It has been more than 2.5 years! I have received dividends 6x of about $700 and the share price as of 12 April has more than doubled my initial entry price. ^_^ This will probably teach me to be "less biased" towards tech companies :-P

Overseas Education

I bought Overseas Education on 6 March 2013 and it has just passed the first anniversary. I have received dividend once amounting to $275. It is a pretty stable business and should continue to show promise once the school site in Pasir Ris is up and running.

CM Pacific

I first bought CM Pacific on 12 April 2013 and have since received dividends of about $330. It has been a under performer so far (in my standard) but hopefully, we can see increased revenue as the middle class in China becomes more affluent, buy more cars and travel more.

As of 12 April, the SRS portfolio for existing listed portfolio alone is up around 48% but unfortunately, I am sitting on a big cash pile of $98.7k to be deployed.

I will see if i have more things to report after i run through the annual report, thus in the mean time, Happy SRSing!
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