Saturday, December 19, 2020

Dec 2020 - Portfolio & Transaction Updates

No.

 Counters

No. of Shares

Market Price (SGD)

Total Value (SGD) based on market price

Allocation %

Category

1.

Jardine C&C

    5,000

S$19.95

     99,750.00

20.0%

Recovery

2.

Lendlease Reit

  85,000

S$0.74

     62,900.00

13.0%

Dividend

3.

Manulife Reit

  60,000

US$0.74

     59,490.00

12.0%

Dividend

4.

Comfortdelgro

  30,000

S$1.71

     51,300.00

11.0%

Recovery

5.

Starhill Reit

  90,000

S$0.50

     45,000.00

10.0%

Dividend

6.

Ascendas Reit

  12,000

S$2.99

     35,880.00

9.0%

Dividend

7.

Prime US Reit

  30,100

US$0.80

     32,260.00

8.0%

Dividend

8.

Yuexiu Trans. (HK)

  27,000

HK$4.76

     22,540.00

6.0%

Dividend

9.

JD (HK)

       400

HK$320

     22,450.00

6.0%

Compounders

10.

Bank of China (HK)

  30,000

HK2.59

     13,630.00

3.0%

Dividend

11.

Tencent (HK)

       100

HK$580

     10,170.00

3.0%

Compounders

12.

Alibaba (HK)

       200

HK$255

       8,940.00

3.0%

Compounders

13.

GA Pack (HK)

    9,000

HK4.28

       6,760.00

2.0%

Dividend

14.

Ho Bee Land

       300

S$2.38

          710.00

1.0%

Leftover

15.

Warchest

  

-

     20,000.00

6.0%

 

 

 

 

 

 

 

 

Less:

CFD@3.2%

 

 

(180,000.00)

 

 

 

 

 

 

 

 

 

Total

 

 

 

   311,780.00

100%

100%

Let's proceed ahead with the final updates for the month to end the year.

December has been an excellent month for the portfolio, as the market continues to price in recovery which benefits most of the golden seeds planted earlier in the season.

The portfolio benefited from signs of recovery and I continue to actively monitor and balance them accordingly to the laggards and those which I think present an enticing play at the moment.


First Update - I have trimmed down my position in Comfortdelgro by about slightly more than half the position. It was the top position in the previous month with 80,000 shareholdings and I managed to trim it down to 30,000 shares left after the shares went for a spiked up sometime in the last week of November (which coincides with my staycation when we were enjoying ourselves at the Hilton hotel). I sold two batches at $1.70 and $1.78 respectively.

I have also offloaded my banks position for both OCBC and Bank of America at a gain of 8% and 17% respectively. Again, I was planning with the intention of buying back at a lower price but with the latest news that the FED has allows share buyback to resume again for US banks look like this is a miss for me to have sold it too early.

I took this opportunity to load for more Jardine Cycle & Carriage, which is a laggard recovery play in my view. I added back a lot more during the time when Jardine C&C was down by more than 6% if I recall due to the last trading day of the constituent of the STI, which suffered an unwarranted sell-off in my view given the current situation. I posted an article and notified this in our Facebook Page so do follow us there for more frequent updates on some of the situation or positions which I took. 

The domestic automotive market situation in Indonesia is still in recovery mode and I strongly believe this will be a really good value play that will pay off coming into 2021. I'll continue to add on to the position for as long as the price stays below $20. You may refer to the latest November statistics article here.

I have also taken this opportunity to double up my position for Ascendas Reit, which I initiated a position last month when the offering was announced. This month, Ascendas Reit continues to see weakness which I thought is likely to be temporary. It is still giving a decent forward yield of around 5.3%, and it is incredibly difficult to find a good yield these days, so I'd consider it decent and have added it for dividend play.

Thank you Ascendas :D

I have also added the US office Reits for Prime Reit as well as Manulife Reit respectively for dividend plays. In a world where the situation for finding yield is incredibly difficult, both Prime Reit and Manulife Reit are still dishing out 9% and 8% forward dividend yield respectively which I thought it was decent. While there are some valid concerns over the entire office landscape situation post-Covid, I think the demand in the US will continue to be strong in certain states and they are unlikely to evolve as quickly as we thought it would be. Also, these Reits have strong Asset A-Grade and Trophy Class offices so at least it gives a good margin of safety from there.

If anyone of you knows or could recommend a decent solid dividend play company, please do recommend it to me in the comments below, or you can connect to me in my email. I'd be more than willing to exchange views.

Last but not least, I have also added back my position in some of the HK Tech companies which I have sold previously on the likes of JD on the back of recent weakness after the listing of JD Health. The former continues to suffer post-syndrome while the latter have rallied a lot since the listing. We'll see if this investment pays off over time.

Apart from this, I have also been receiving and generating income from some of the options play which I took mainly on EV plays such as Xpeng and Nio through both Tigers and IBKR. They are not big positions but one which is within my comfort of style of play and tolerance, and most importantly the premiums are great in these companies given their very volatile movement and their recent offerings play. I have also other recent past closed/open positions in Salesforce and Palantir.

Open Options position at Tiger Brokers


Networth Updates

So the portfolio continues to benefit strongly again this month with an upsurge double-digit move month on month.

The continued rotation play benefited some of the positions I have such as Lendlease, Starhill, Comfortdelgro and as a result of this, the portfolio ended a strong month at $311,780.

This brings a total return at the end of this year to 191.7% and cap off a really good base on en-route to the next goal in 2021.


Here off wishing everyone a Merry Xmas joyful and full of bliss ahead from the 3Fs family.

Kaching!

Thanks for reading.

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10 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Hi B,

    Your portfolio building is back

    I find HK exchange littered with dividend plays.

    I believe they are cyclicals and can recover their days to high dividends beyond 2020.

    They are

    Stella holdings (shoes maker and designers) 1836

    Lonking (construction machinery ) 3339

    Lungkee ( mould base markers) 0255

    Cosco international 0517

    GA pack (tera packaging) 0468

    I own all except Stella which I feel I missed the boat and didn't want to chase. All are in excess of 7 percent yield

    I double my hotung too, I believe dividends might be cut this year, but the "badyear" night be good for VC sowing thou not harvesting

    ReplyDelete
    Replies
    1. Hi SI

      Thanks a lot for the recommendation!

      For SG stocks, I'm also forced to look at the smaller caps with the likes of Hotung, Fuyu, and Valuetronics. Appears all three might somewhat cut or muted dividends in FY21 but looking still to see if there are potential plays.

      Thanks a lot for the recommendation on HK dividend companies, indeed they are literally littered with dividend plays, love it, plus the USD is so low now. Could be a double sword to play with and hit both jackpot.

      Delete
  3. Hi B,

    What are your view on Sabana REIT. This one caught my attention due to the activist investor stake, from Quarz Capital and Black Crane. It was supposed to merge with ESR REIT but got downvoted (rare occurance).

    A few things to note
    - Assets trading below book value and below comparative peers
    - Assets concentrated around industrial and logistics and in Singapore, limited risk
    - Activist ownership around 10-15%
    - Possible upside with rental reversions and low borrowing costs
    - Significantly lower geared (but smaller) than its peers

    ReplyDelete
  4. Hi,
    I was to ask you about buying Calls or Puts in IBKR. So, if you buy it for say $10 a piece, say 10 calls/puts, you just need to put in $100, correct? But why i want to buy the calls, they ask for more than just the face value, is it because the calls i want to buy is in the money, so I need to buy with assumption that I exercise it?

    ReplyDelete
  5. Hi B

    I was also wondering why Ascendas dropped so much even though it was due to rebalancing. Its yield is high considering its such a good reit with track record.

    For Alibaba, would you be able to shed some light on why you purchased their HKD shares instead of USD shares?

    Thank you.

    ReplyDelete
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