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Starburst just went burst today....

It was pretty ironic.

The stock that i wanted to buy but missed out, IPS Securex, ran up like crazy from 49c and the one that i managed to get, Starburst, went down the gutters after announcing a very poor set of Q1 results and now i am sitting on a unrealised loss of 3.8k within one day... ouch!! The stock chart looked super ugly

This is the perils of investing in small cap stocks with lumpy earnings..... Although the Company took great pains to explain that Q2 will get some revenue but i am not sure if it will be as good as Q2 last year...

I am so so so so upset with myself.... :-( 

I will need to re-look at how i select stocks for long term investing but first i need to find the time....

Starburst Holdings Limited

I added 50,000 lots of Starburst Holdings to my SRS account on Thursday at $0.555 each. I first covered this Company when it IPO last year and my article is here.

I will not spend too much time writing about the Company as you can find the annual report here.

The Company specializes in the design and engineering of fire-arms training facilities in SEA and the Middle East. The Company has been growing rapidly for the last three years and net profit hits S$13.159m in FY2014.

The Company has been generating impressive returns for its shareholders as seen by the ROE and ROA

and more importantly, the Company has little debt on its balance sheet and trading at a valuation of around 9.4x PE

The shares are quite tightly controlled with only 20% free float and each founder holding 40% of the Company.

If you want some out-dated research report, DBS and CIMB issued reports in Sep and Aug last year. The links are here and here respectively. While i like the uniqueness of this Company, my concerns will be the lumpiness of the contracts and it is good that they are getting recurring revenue now from range maintenance etc.

This shares hardly trades so if you want to cut loss and get out, it can be an issue. This is a medium term hold for me of about 2-3 years. Hopefully the Company will not disappoint and continues to fire at all cylinders.

Happy firing!

SRS Portfolio - 30 Apr 2015

There is nothing much to blog about about my portfolio as of end of April. I have been very busy with work but having said that, I added a position last Thursday. I will blog about it in my next post. 

UMS Holdings Limited

UMS holdings went XD on May 5 and the dividend of 3 cents will be paid on May 28. My shareholding of 50,000 shares will receive a dividend of $1,500. This definitely feels more substantial than the one coming from Sembcorp! 

Sembcorp Industries Limited 

Sembcorp went XD on April 23 and the final dividend of 11 cents will be paid out on May 18. Based on my wife's shareholding of 2,500 shares, that will translate into a dividend of $275. That sounds quite pathetic. hahaha. If i include the amount paid out during the interim, the yield will be around 3.95%. Maybe i should have 'created' my own dividend by selling at $4.80. lol....

The Company announced a poor set of Q1 results on May 7. The presentation slides are here. The Q1 net profit was down a whooping 23 % due to intense competition in Singapore. The Q1 EPS is 7.8 cents. Net Asset Value stands at $3.31. The outlook for the remaining 2015 continues to be challenging. While I don't like the outlook and smell of things, the share price may have already priced in the poor results. I will hold it for now unless the share price crashed below the major support of $4.05.

Happy SRSing. ^_^  Still have quite a bit of cash to deploy!.....