Monday, 27 October 2014

Rebalancing My Investment Portfolio

It’s yet another busy month in October, both in work and investments. Last week was traveling and prior to that was off-office hour stock scouring after the Bearish stock markets. Made some buy and sell positions as follows.

"SELL"

Suntec Reit – Partial sale to reduce my biggest holdings (before the sale) and unlock profits. This is to provide funds to buy other stocks during times of distress. Nevertheless Suntec is still one of my substantial holdings.  

KSH Holdings – Complete sale due to not so favorable outlook with declining earnings, soft construction and property sector outlook. However balance sheet and cash position is still strong with continual diversification of its business. The sale is mainly to unlock small profits to take advantage of other better opportunity stocks as deem by me.




"BUY"

Sembcorp Ind – Stock price hit 52 weeks low and I picked up at S$4.78 at est PER of 11x with a dividend yield of 3%. Decent I thought for a Temasek owned conglomerate. The falling price is primarily due to pessimism in marine business, as result of bleak oil price outlook. Net profits diversification of 51% utilities and 39% marine seems a better bet than it’s subsidiary Sembmarine who also suffered substantial decline in price. Marine is not entirely doomed to failure with strong backlog order / balance sheet and continual orders win. I also like it’s FPSO penetration lately with OOG-Teekay Libra project. Brazil Petrobras had indicated that it’s FPSO thirst is not going to cease in the short term.

OUE – Another stock hitting 52 weeks trough and I get the bargain at S$2.05 at almost 50% discount its net asset value. Price to Book is at 10 year low with potentials to unlock more asset value after transferring to Trust. Read more from B’s blog here. Thanks B.

Ezion / Nam Cheong / Swissco - Oil and Gas stocks share prices drop like a falling knife. I caught three stocks which I reckon that are able to survive the short term crisis.  Actually I should use the word “nibble” (not big position). This is because if another over-reaction happens in the mid-term causing the prices to drop, I will nibble again. See my previous blog here on why I added these 3 stocks

Anyway nibble is such a good word to use. If prices fall after my purchase, I can say it is only a very small position. If prices rise later, I can say my nimble is actually quite substantial. Either way, I won! Haha… LOL.

CURRENT PORTFOLIO

1. AIMS AMP Cap
2. ARA
3. Asian Pay TV
4. CapitaRetail China Tr
5. Chip Eng Seng
6. CM Pacific
7. Coca Cola Amatil (ASX)
8. Comfort Delgro
9. Courts
10. Croesus Retail Trust
11. Ezion
12. Fraser Com Tr
13. KrisEnergy
14. Lippo MIRT
15. Maple Log Tr
16. Nam Cheong
17. OUE
18. Oveseas Education
19. Raffles Medical
20. Sembcorp Ind
21. SGX
22. Starhub
23. Super
24. Swissco
25. Vallianz

Disclaimer: This blog and its contents contain the opinions and views of me. It is not a recommendation to purchase or sell the stocks of any of the companies or investments herein discussed. If a reader requires expert financial advice, a competent professional should be consulted. I cannot guarantee the accuracy of the information contained herein the blog and its contents. Other than being the shareholders of some of the stocks discussed herein at the time of writing, I am not in any way related to the company mentioned within the blog. I specifically disclaim any responsibility for any liability, loss, or risk, professional or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any contents of this blog.


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Rebalancing My Investment Portfolio

6 comments:

  1. Read somewhere. Can't remember where.

    Nibble is an "ego" word of saying buy just in case if the buy is not so correct. Ha Ha!

    Must learn.

    ReplyDelete
    Replies
    1. Hi Uncle CW,

      I thought I learn it from you! Haha.... LOL
      "Ginger is still more spicy when Old"

      You are always my "Pig in the office" - that story I will tell all my children......

      Cheers, Rolf

      Delete
  2. Wah you got in at a pretty good price for Sembcorp and OUE. Im envious.

    Anyway, I'll probably add to these sooner as well if price continues to decline.

    ReplyDelete
    Replies
    1. Hi B,

      You are the master, I am just the follower! Over time the master's wisdom will outshine the follower. I will add more too if price drop. But need to be careful during earning season now.

      Rolf

      Delete
    2. Hi Rolf

      No master lah... the master is up there on your first comment. Not so loud, he is meditating in the mountains everyday praying to unleash his power :D

      Delete
    3. Hahaha.. Yes yes yes...

      The real master with invincible "Yin Yang Kungfu" waiting to unleash his 47% inner strength powers!

      Delete