Sunday, October 3, 2010

Portfolio as at end Sep 2010

This is a post on my portfolio holdings as at end Sept 2010.

My portfolio, as at end Jun 2010, contains the following stocks:

Bright World; China Gaoxian; Eratat; Heeton; Hiap Hoe
Roxy; Techcomp; Valutronics; Ziwo

In the quarter end Sept 2010, my portfolio has experienced some turnover, as I sold off the construction stocks and technology stocks; and bought more S-chips.

Sold: HockLianSeng (HLS), Ryobi, Viz branz, Broadway
I have sold off the construction stocks HLS and Ryobi, as I find myself unable to make proper value assessments since the construction revenues tend to be of uncertain nature.

Viz Branz is sold before the share split, as I think the upside may be limited. From the present price, I may be wrong in my earlier assessment.

Broadway was sold as I feel pretty uncertain about Seagate's HDD sales in the coming quarters. Hence, I decide to be more conservative and sell first. However, I am not sure if this decision may turn out to be a wise one.

Bought and Sold: Koh Brothers

Koh Brothers was bought as a property development play. However, as Hiap Hoe and Heeton seem to have a higher margin of safety compared to Koh Brothers, I have sold my stake in Koh Brothers later.

Bought: Ziwo, Hiap Hoe, Valutronics, Bright World

Ziwo and Valutronics were bought after their good results. In addition, I have further added to the Valutronics position after the recent OCBC report on the good reception to Valutronics air purifier in the US.

Bought Hiap Hoe after some forumer has noted that Hiap Hoe is valued at around 1/3 price to future book value. My own basic calculations concur with the forumer.

Bought Bright World as a play on China's continued increase in manufacturing capacity.

Added: Eratat

Added to the Eratat position, as the price of Eratat falls during July. In addition, I have also added to Eratat after reading some articles on Eratat.

Portfolio Composition

Heeton remains my largest holding in this quarter, while Eratat has become my second largest holding after its price rises. China Gaoxian is my third largest holding.

Conclusion

While STI has risen to a new high, my portfolio did not surpass its previous high in April. Presently, I am pretty neutral towards the market. In addition, I suspect that there may be further re-rating of the S-chips in the medium/long-term future.