This is a post on my portfolio holdings as at end Sept 2009.From Jun - Sep 2009, there have been many changes. My portfolio, as at end Sept 2009, contains the following stocks:
Fujian Zhenyun (FZ) Plastics
Sold: Adampak, China Sunsine, China Ziano, Etika, First Reit, Guthrie, Hong Fok, Jardine Strategic and Valutronics.
Etika was sold during the early July downturn as I wish to remove this non-core position during a downturn.
China Sunsine, First Reit, Guthrie, Hongfok, Jardine Strategic and Valutronics are sold to raise cash to buy other ‘better-valued’ (IMHO at that time) stocks.
Adampak is sold to take profit and raise cash for other stocks. China Ziano is sold due to the possibility of weaker fundamentals, as its competitors have slashed prices more aggressively than previously assumed.
Bought: China Eratat, Fabchem, Metro, Techcomp and UOA.
China Eratat is bought on the basis of its very low valuation i.e. around 2 PER. However, I did not buy many lots here as I am wary of its negative cashflow then.
Fabchem is added as a proxy play for mining. Metro is added as it is trading at 0.5 P/B and as a proxy play for China properties.
Techcomp is added due to the possibility of growing sales to other countries in the long run. It is also a possible play on developing countries’ demand for better laboratory equipment due to increasing awareness of health threats from avian flu etc.
UOA is added as an ‘undervalued’ property play. However, I am not very certain presently if my original buy basis on UOA is correct.
Bought and sold: Broadway, Guocoleisure, Kingboard
Broadway is bought as a play on technology recovery. It is later sold to take profit.
I have bought Guocoleisure heavily as it is both undervalued and safe (since it is owned by the Hong Leong/Guoco group). It is later sold to take profit too.
Kingboard is a contra trade, as I feel that my initial buy basis is not sufficiently strong.
During the quarter, I am very active. My portfolio turnover may have exceeded 100%, which may be due to the market bullishness in this quarter.
Presently, the market has become less undervalued. Putting it in another way, the equity-aversion premium has more or less depleted.
Hence, I have adopted a longer horizon in my stock selection. I expect that my latest added stocks above will require longer germination time before they are able reach my target prices. And, due to the longer germination time, I guess that my portfolio turnover rate will decline as portfolio holding period increases.
As for my portfolio returns, it has safely out-distanced the STI returns this year due to the good returns on both the First Reit position and Guocoleisure position.