Saturday, July 1, 2017

Mid Year 2017

Stock Portfolio Returns 

Year-to-Date Portfolio Returns:20.7%
STI index excl dividends: 12%

Number of stocks in portfolio: 24

Stock Portfolio Rules

1) Keep number of stocks in portfolio to 20-25 stocks.

2) I can only buy the stock till it is 10% of my portfolio

3) No stock can be larger than 20% of my portfolio. If the stock rises to above 20% of my portfolio, I need to trim my position in the stock.

Thoughts on Portfolio

It is harder to find stocks to buy in Singapore market. I have been sellng more Singapore stocks than buying in the last two months.

Instead, it is easier to find stocks to buy in the HK market. I have been buying HK stocks instead in the last two months.

Some portfolio actions in last two months:
Singapore Stocks
- Sold 1/3 of my Dutech position, in veiw of the poorer than expected 1Q 2017 results. If Dutech dropped by 10%, I may add to my Dutech position

- Sold down 75% of my position in Valutronics before the bonus share issue. The bonus share is 1:10. Is leaning towards keeping the remaining Valutronic shares for the dividends. Nonetheless, I may also dispose of the shares, as the position is smallish (around 1% of my portfolio).

- Sold 1/2 of my position in 800 Super at $1.32. The sale is due to the poorer than expected 3Q results. The sale will reduce my concentration in this stock to 5% of my stock portfolio. Prior to the sale, 800 Super is 10% of my stock portfolio.

- Sold 1/2 of my position in OCBC at $10.92. The sale is to take profit. After the sale, OCBC is around 1% of my portfolio. If the price rise further, I will sell all my remaining shares in OCBC.

- Add to my position of Far East Hospitality Trust (FEHT) at $0.615. FEHT is around 4.5% of my portfolio.

- Add to my position in Cogent. I think Cogent earnings should continue to grow in the next 1-2 years.

HK Stocks
- Bought Hui Xian Reit, which is now around 2% of my portfolio. This reit offers more than 8% yield and trades at 2/3 book value.
- Bought China Overseas Land, which is around 4% of my portfolio. It is a China developer with rather interesting ROE of higher than 15% in the last few years.

Thoughts on Stocks

It is interesting that HSBC is now $72 and a year ago, you can snag it for less than $50. Too bad that I was not able to foresee this increase in share price and the under-valuation of HSBC a year ago, even though I am aware that the sentiment on HSBC was quite poor.

I read from somewhere that China banks are among those stocks with very poor sentiments. I agree somewhat with this view as the PE ratio of Big 4 China banks are quite low, even though there are some risks in investing in China banks. I may buy some shares in a big 4 China bank (listed in HKSE) if their share prices fall further.

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