Thursday, 1 May 2014

Re-balancing My Investment Portfolio

It's early morning of Labour day - Hurray Public Holiday! and my family members are all asleep. I am the lone "night cat" again and decide to "meow" a post. This is my 30th post, in my blog's second month anniversary since my first post. The past week had been a busy one buying and selling of stocks, in an attempt to re-balance my Stock Portfolio. Below are some of the purchase and sale done.

"SELL"
SPH - Reasons mentioned in my earlier blog. See here

Vallianz Holdings - I blogged about more growth to come for Vallianz earlier - see here.  So why the sale? I think it is timely to take generous profit at a price of 0.15 in order to recoup most of my initial capital invested more than 3 years ago. Besides, it is probably wise to use these significant funds to add more stocks to my portfolio for achieving more diversification. Lately, I also hear news of strong competitions from this market sector plus the additional 100 million debt Vallianz undertook in Mar, making me uncomfortable. Nevertheless, Vallianz is still one of my major holdings, but comprised mostly of unrealized profits now with limited risk in losing any large initial invested capital.

Swissco Holdings - After its share price tumbles more than 20% within a day on 20th Mar - refer here, I made an re-entry to buy it low then. Last week Swissco make a spectacular rise to 0.45. I chose to take profits, attracted by the 30% gain within less than a month. More importantly I consider this increase "temporary" and "speculative". Hopefully I am right. Meanwhile I will wait for a good opportunity to re-enter again if possible, since I believe it is a potential multi-bagger, going long term. 


"BUY"
Overseas Education Limited - I always love education company and OEL is one I spotted. Great company, lots of cash and no debts. Issue bonds recently to supplement its existing cash for the pay down of her new 270 million campus in Pasir Ris. School fees are not the most expensive compare to competitors. Together with the new campus, expected to be ready Apr next year, upside in earnings is very positive.

Mapletree Logistics Trust - Temasek backing and one of the most diversified logistic trust comprising of >100 properties in Singapore, Japan, HK, China, S.Korea, M'sia and Vietnam. Love the freehold properties in Japan, potential for more acquisitions, healthy WALE, 75% of debt hedged, and finally yield of ~7%  provides strong reasons for my buy call. 

KSH (Kim Seng Heng) Holdings - Construction company with diversification into property sector in S'pore, M'sia, China, and more recently Cambodia. Healthy construction order book 460m, strong cash 144m, low net debt (ST + LT debt - cash + equiv) to equity ratio 4%. Low PE 4.5, PB of 1, good dividend yield 4.8% and strong ROE 20% + ROA 10%.

CURRENT PORTFOLIO
1. Vallianz Holdings
2. Suntec Reits
3. Nam Cheong
4. KSH Holdings
5. Croesus Retail Trust
6. Comfort Delgro
7. Raffles Medical 
8. Mapletree Logistic Trust
9. Oveseas Education Limited
10. Lippo Malls Indonesia Retail Trust
11. Fraser Commercial Trust
12. BRC Asia 
13. SGX
14. Starhub

Seems like the current 14 stocks is not so auspicious since 14 means "going to die" in Mandarin.

I still have funds available for investments and will probably add on one or two more stocks in the next week or so. 

Happy Labour May!!!







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