Sunday, 17 March 2013

Starfish SRS Portfolio Update - 17 March 2013

Time for a weekly review of my SRS portfolio. It is shaping up nicely from my end Feb posting, where the unrealized portfolio valuation continue to increase and the main contributors are Far East Hospitality Trust, Nera Telecom and SPH.

Far East Hospitality Trust


My entry is the green arrow back on 29 Aug 2012 and it has a nice run up last week to a record high of $1.22. The major news announced in March was the attainment of a triple BBB grading which allows the company to issue debt at a much lower interest rate. The counter is up 23% from my entry price.

Nera Telecom


Nera Telecom continues its upward onslaught. The company is currently undergoing changes as it appoints new directors to chart the course of the company. Hopefully the PE guys can perform some 'magic' to this company. The counter is up 64% from my entry price.

SPH

The biggest surprise uplift in my portfolio actually came from Singapore Press Holdings. One of the most "under-performing" counter in my portfolio until it announced that it is going to launch a REIT! This is a good way to capitalize on the assets and generate returns to shareholders while creating a new asset class with recurring income.


I have been holding this counter for a few years and my entry price is around $3.77. Based on my "available" records - some earlier pre-July 2010 data was lost when my thumbdrive crashed, i have received $680 back in dividends since July 2010. I guess we have to be patient with "blue-chip" counter for it to execute its strategy slowly...zzz... while collecting dividends along the way. Excluding dividends, the counter is up 20% from my entry price. 

Perennial China Retail Trust

Actually my biggest concern is for PCRT where we see senior management changes recently. The COO has resigned at aged 59 to "pursue personal interest?"and deputy CFO has "changed" her work scope as well. I don't really like to see so many changes within such a short span of time. It reminded me of SMRT where many senior executives resigned around the same time shortly after one another.

The share price has dropped from a high of 66 cents. The counter is still up 15% from my entry price but i really don't like what i am seeing here recently and may exit from this counter soon if share price continues to be go lower. Probably I will say good bye if it breaks 57.


No major updates to the other counters. My portfolio as of today looks something like this.


Happy SRSing.



Wednesday, 13 March 2013

Second Chance Properties Limited

Second Chance Properties

Today i added 10 lots of Second Chance Properties Ltd at 41.5 cents each. It has 3 core business of apparel retailing, gold jewellery retailing and properties investment. The website is here and it has an interesting annual report with FAQs. The 2012 annual report is here.

It started with 2 shops in 1999 but as of today, the company holds 62 properties and is a major contributor to its operating profits.

I never like this company in the past when it was an apparel retailer, not sure if you can still remember the TV advertisement where a lot of "ang mo" models were used to sell the clothes "2nd Chance" with a very catchy tagline "Give yourself a second chance...". I think the apparel business was doing fine cos everyone thought it was a "foreign label". When everyone knows that it is just a local brand using "foreign talents" to sell the products, sales dry up and the company went into difficult times. 

The company then changed its strategy targeting to sell gold and apparel to the Malay community here before branching out to property investments. Today, properties contribute to the majority of the profits after tax. I buy into this companies because of the recurring nature of the rental income from the properties and the possibility of asset value appreciation due to the rising property prices. I would not have considered this company if it is a pure apparel retailer. It is more a "landlord" to me.


The Company has been buying back its shares recently at between 38-39.5 cents. Assuming the dividend of 3 cents is maintained (which in my view is probably likely), the yield is around 7.2% based on my entry price of 41.5 cents but it can go higher if special dividends are announced. 

The Company changed its Financial Year 2012 from June to Aug last year (14 months), thus you will likely see a drop in revenue and profits for FY13 ending 31 Aug 2013 as it is back to 12 months. 


Once again, this is a yield play for me. I am not looking for capital gain in this purchase. More to diversify my passive income stream to different companies and the potential yield of 7-8% is adequate for me. 

Happy SRSing.

Some dated articles for reading:

Saturday, 9 March 2013

Overseas Education Limited - FY2012 Results

Overseas Education Limited ("OEL") announced its FY2012 results.

I have recently added the counter to my SRS account. The post is here.

The results as follows":


Revenue increased by 7.9% to $96.4m and net profit increased by 6.1% to $20.7m. My profit forecast in my IPO write up was $18.95m.  The EPS is 7.8c based on the pre-ipo shares but if based on the total number of outstanding shares, the EPS will be 4.97 Singapore cents versus my forecast of 4.85c. As you can see, i try to be more conservative in my forecast. :-P

This translate into a 2012 PER of 11.67x at the current share price of 58 cents. A dividend of 2.75 cents per shares has been declared and will be paid on 21 May 2013. The shares will go X-D on 9 May 2013. This translate into a yield of around 4.74% based on my entry price. 

This is a long term play for me. Don't expect much fireworks as this is a stable business and i am looking for yield.

Happy SRSing. 

Thursday, 7 March 2013

SRS Portfolio 28 Feb 2013


Two acquisitions in the month of February. 

5 lots of Ascott Residence Trust and 10 lots of Riverstone Holdings. The SRS account also received $113 of distributions from Starhill Global Reit and interest income of $2.21

The unrealized gain is around $8,221.57 (or 18.3%)

Happy SRSing.

Wednesday, 6 March 2013

Overseas Education Limited

Today i added 10 lots of Overseas Education Limited to my SRS account at 58c each.

I have covered the company in my IPO write up here. My estimate is that the yield is probably around 4+% at current price. 

The chart is for reference and probably not important given that this is a long term buy.


Happy SRSing. 

Tuesday, 5 March 2013

Passive income from Blogging (part 2)

As promised, this is the continuation from my earlier post on 29 September 2012.

Today is a milestone in my "blogging life". I finally reached $100 for my Nuffnang account.


This is after my first $100 since 28 Oct 2007....5 years 4 months and 5 days.....


I am going to click "cash out" and hopefully, it will not turned into a "kana played out" after so long. hahaha I shall wait up till 30 days to see if i am going to be paid.

I have previously shared with you that Google adsense is a good product you should have on your blog. Having said that, my income from google fluctuates like yo-yo depending on whether there are IPOs on the local market or not. But one thing is for sure, i don't have to wait 5 years to receive my first $100... :)

Happy blogging

Sunday, 3 March 2013

UMS Holdings Limited FY2012 Results

I acquired my stake in UMS on 6 Sep 2012. My posting was here. Ever since then, i have received dividend twice in the last 3 months, amounting to $200.Based on the $200 alone, my yield was already 4.9% and it is not even "annualised".

UMS announced a full year profit of $17m, compared to $27.6m before, which is pretty "disappointing" but the interesting thing is that the free cash flow is $29.3m, which is pretty impressive. In other words, the Company is highly cashflow positive. I once spoke to a veteran in the semiconductor space and he said that Free Cash Flows is more important in the tech sector than anything else.  


The fully diluted EPS for FY2012 is 4.94 cents and at the current price of 44.5c, that will imply a PE multiple of about 9x. This probably indicates the company is trading at fair value unless it can show some uplift in its EPS next year.

The Company also announced another 2 cents dividend for FY2012, and that will bring the total dividends to 4 cents for me, implying my yield is approximately 10%, based on my entry price of 40c. (The company actually paid 5 cents dividend for FY2012.)

Outlook

It is interesting to note the positive tone in the "outlook" from the annoumcement below:


I will stick with UMS since it has been generating very good cashflow to my "passive income".  I will end off with the statement from the Founder and CEO:

"While the last quarter results are significantly lower, we believe that the recent downturn in the demand for semiconductor equipment has bottomed out. Similarly, our key customer has revised their forecasts upwards, with revenue growth in the region of 15-25% sequentially for the first few months of 2013. We are optimistic about the potential of our markets this year, with mobile products such as smart phones and tablets being the main drivers of investments in semiconductor equipment."

Happy SRSing. I am pretty comfortable with this counter. :) 

Saturday, 2 March 2013

Riverstone Holdings Limited FY 2012 results

Riverstone announced a record FY2012 revenue of RM 309.8m and a net profit of RM39.7m. It also declares a final dividend of 3.8 sen, bringing total dividends for the year to 6 sen and translate into a yield of around 5.4%.


I have acquired my stake recently at 47 cents. The posting was here. The implied yield for me was around 5.7%. The net profit for Q4 dropped quite drastically due to a 100% increase in provision for taxation, which is pretty disappointing. They could have "spread out" the tax expenditure better throughout the years.

I think the outlook remains positive as the company completed the construction of additional production line at its plant in Ipoh in Dec 12 and increased its annual production by 600m gloves per annum. 

Below is the parting remarks by the CEO. We shall evaluate what he said next year.


Happy SRSing. I will cover the results of UMS in a separate post.  
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