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Change Warerobe for Chinese New Year?



Chinese New Year is round the corner and my wife is "nagging me" to throw away some "old clothes" before i am "allowed" new ones. 😋

I can still recall when i was young, i get to wear new clothes during Chinese New Year ... and today, there is an article on Sunday Times to "review your stocks as would your clothes".  The article is here for your reference. 


I was looking through my portfolio to see if there are any counters which I should "discard" . . .  

SRS Portfolio


Frasers Commercial Trust has done quite well for me and i have elected for scrip dividend since the date I invested. In fact, DBS reiterate it's buy call on FCT on Jan 19 with a price target of $1.71 (11% upside). The report is hereConclusion - I will keep Frasers Commercial Trust.

Netlink Trust - The share price hardly moved above its IPO price. While I have managed to acquire some shares below the IPO price, I would say that Netlink has performed below expectation. UOB mentioned that Netlink Q2 results is inline with expectation and provides a "resilient" dividend yield of 4.9% for FY18 and 5.9% for FY19 with a target price of $0.93. The report is here. Conclusion - I would probably have gotten better results if i have invested in other counters at the same time. Given that i have already waited since July 2017, i will continue to wait till its maiden dividend. 

Starhill Global - This is probably a disappointment. While i have received regular distributions of around 6%, the price has hardly moved. Conclusion - while this counter paled in comparison with other REITs, i can't complain about the 6% yield. Will keep it for now unless there are other compelling REITs which i can switch into. I am putting Capitamall Trust in my watch list as the portfolio is more diversified. 

UMS Holdings - This counter has done extremely well for me and based on my purchase price, the yield is around 10% each year. Once a portfolio gets "significant", every 1 cent movement in UMS equates to $1,000.... so if it drops 5 cents in a day, that is a whopping $5,000 gone. DBS has a target price of $1.21 (report here). Conclusion - Company seemed to be progressing on track and has done well for me. I have no reason to sell this counter at this juncture.


Non SRS Portfolio

Keppel KBS USD REIT - This counter seemed to be doing fine even though USD has weakened. DBS has a$0.95 target based on its 15 Jan 2018 report. Conclusion - will keep it for now till i receive the first dividend.

Hyflux 6% perps - After my posting last week, two things happened . . . The first thing was the price dropped even further down to a low of 70c!! (ouch). The implied yield at 70c is around 8.57%. The second thing was that some readers wrote to me and asked if i am cutting loss or selling. I have earlier mentioned that i would have done so when 90c broke but probably not now. I am disappointed with the management for a few reasons. (i) The perps holders are not entitled to the distribution in kind (ii) they still persist to do the distribution in kind to equity holders even though it is dilutive to the overall health of the Company. Conclusion - This is one "shirt" which i should have gotten rid of long time ago. If the management "dare" to halt dividend or "not call on the perps", I will probably lose the pants too...  🤕

I have a few other bonds that are doing well and trading above par so i will not blog about them here. Conclusion - hold those bonds till maturity.  My projected dividend income for 2018 is around $49,123. I will do another underwriting exercise later. 

Dividend Warriors CDP statement

I always enjoy looking at the "CDP statement" of Dividend Warrior. In fact, a lot of bloggers blog about their great investments but never dared share their portfolio. Sometimes you also wonder if what they said is true or not. Dividend Warrior not just shared with you his portfolio, he showed you his CDP statement. period. 😂

While my portfolio is highly concentrated in a few counters, his portfolio is actually quite "diversified". Looking at my portfolio, I can probably invest more into REITs. Given the heavy run up in share price in many of the REIT counters, i will have to be patient to wait for a better entry point. 

Go read his blog and start building your own "income generating" portfolio and you may want to see if you need to change some new "clothes" along the way, just don't end up with the Emperor's new clothes. 😀

Happy SRSing!

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