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Topping up SRS and random rumblings...

2018 was off to a great start ...

2018 was off to a good start where the compliance placement of Memories Group at 25 cents debut very well and ran up to a high of 41 cents. I benefited from the strong run up in the first 3 days where I managed to dribble out the shares over the first 3 days before the volume tapered off. My write up on Memories Group is here

but i missed out on Cityneon ... 

I was eyeing Cityneon since it corrected from a high of 1.24. I like where the Company is heading fundamentally where it is acquiring intellectual property rights and creating new revenue streams from this IP. My buy order at 97 cents wasn't filled and it ran up when UOB re-issued its "buy" recommendation report.😫 I will wait and see since i am buying this for the long term.

and i decided to top up $15,300 into my SRS account for 2018 ...

The cash in my SRS would increase to $38, 963. This would provide some ammunition for my next purchase.

Readers would know that i faithfully contributed to my SRS account every year since 2006 and over the 13 years, i have contributed $167,025 and the portfolio has since grown to $255,655, compounding at an IRR of 8.2%. 

While my SRS account has done well, wifey's account has not done well at all as it has invested in the 6% Hyflux Perps. The portfolio value is now only 0.84x of the capital invested 🤕

As you can see from the chart above, it reached a new low of 77 cents on Friday, indicating low investor's confidence. 

If i sell now, i am going to realise a big loss but if Hyflux redeems my notes at par on 27 May 2020, then wifey's account will escape unscathed. See my IPO write up here

Hyflux Perps taught me a good lesson on credit ... 

The fall in Hyflux Perps taught me a good lesson on credit worthiness of a Company. It issued the perps on declining revenue and profitability and now even distributed "in kind" dividends to its equity holders while leaving the perps holders out in the cold. That to me, is poor governance. I will continue to hold on to this company given that the redemption is 28 months away. Let's check back here again to see if I will live to regret the decision. (side note: under my usual style, i would have cut loss when 90 cents gave way but i didn't do so for two reasons. (i) this is more of a yield play for me and (ii) i need to deal with cumbersome approval process for each sale.... so I chose the lazy way out of leaving it alone) 

That all the random rumblings for now... do stay warm under the super cold weather.... brrrr.... it's super cold but it's great as i have not turned on my aircon for the whole week! 

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