Good Saturday morning folks!
It's election fever here in Singapore as we are in the midst of our elections to vote for the next party to be in parliament. My vote is still undecided as a myriad of topics emerge for both deliberations and considerations. Usually in the past, there is an 'election effect' that we would see for Singapore stocks. However, with the current overall market volatility this effect has been completely dilluted.
Nonetheless, I remain steadfast in having strong belief in our local companies. More so of the ones that I have invested in. In recent weeks I have been faced with a dilemma.
- Do I average down only on some of my heavily beaten down positions?: OCBC Bank (11% down), Jardine Matheson (11% down) & Sembcorp (17% down).
- Or do I maintain allocation discipline and add evenly across all names?: Currently I have 8 names in the portfolio which has not changed for the last 6 months: OCBC Bank, Sembcorp Industries, Jardine Matheson Holdings, CapitalandMall Trust, Mapletree Commercial Trust, Singtel, ComfortDelgro and Raffles Medical.
- Or do I add positions to the ones that have continued to hold up well?: Comfortdelgro and Raffles Medical, both positions are the top performers in my portfolio.
As I type this and with limited resources at any one point, I'm still pondering on the next step to take. However and I say this with immense pride, I am glad that I rejected the urge to panic sell or to re-consolidate certain positions indiscrimately. With proper planning and selective stock picking, it became apparently clear and more so during the recent market madness that the companies which I have chosen are solid names that I would want to add even more when markets rotate.
So I'm glad my decision moving forward is skewed towards where to ADD rather than where to SELL as there is no impairment I see at all to any of the 8 businesses that I have stakes in. Nonetheless and on the flip-side, in a bullish market if any of the positions have risen to levels that I feel are prime for trimming, the appropriate rebalancing will be done. This was done a couple of times on both the Comfortdelgro and Raffles Medical positions earlier this year (for those of you who have been following my blog you may have read those earlier posts).
So remember, to empower your portfolio you need to have faith in the companies you put your hard earned money in. Not blind faith I have to reiterate, but faith stemming from hard work and research in the companies you own.
If you are new to investing and would like to construct a portfolio for a start, you may wish to follow my selections and get updated via this blog. However, please do not take this as buy-sell recommendations but they are suggestions on how to construct a proper stock portfolio. This will hopefully set you on the course to a better financial future and less reliance on your active work income.
Ending off with sharing some of my dividend updates for Sept below:
*Dividend Update for Sept
- Scrip reinvestment elected: OCBC Bank $360
- Scrip reinvestment elected: Jardine Matheson US$38
Signing Off and Have a Great Weekend
Transitioning Stock Investor
Showing posts with label OCBC Bank. Show all posts
Showing posts with label OCBC Bank. Show all posts
Saturday, 5 September 2015
Friday, 17 July 2015
Market and My Portfolio
This week has broadly been a good week with a little bitter sweet taste in my mouth. Most of the positions in my portfolio have been resilient and have recovered some of its drops seen in June. I sold off 1000 shares of Raffles Medical to fund a recent watch purchase last week and lo and behold this counter shot up into the hemisphere yesterday and finished at a crazy price of $4.90. I'm glad I still have 1,022 shares of this counter but lament the fact that I probably should have let go of some of my loss making Sembcorp Ind. holdings instead. Oh well, we all don't have a crystal ball do we but lessons learnt. Nevertheless my portfolio should always be looked at as a Long Term proposition and no more of such monkey business (although I have a nicely added watch to my collection lol).
I'm gonna post some comments of some of my holdings.
1. Raffles Medical - I seriously don't know what happened to this stock. It shot up c.4% yesterday and now I'm sitting on a nice 24% profit on this position. I definitely will look to add on in further but does anyone know what caused the sudden uptick in this counter's price movement? I O/W this company provided at more sensible prices.
2. Comfortdelgro - I added on 300 shares at $3.06 yesterday to this counter. This is after I took some money off the table 2000 shares at $3.21 before the Greek crisis unravelled. This turned out to be a pretty good move and I'll be looking to add on more shares to this company which I still favour alot (stable and strong ROE, strong cashflows and balance sheet, solid and diversified business model). I look to continually O/W this company.
3. Capitamall Trust - It was in the news recently regarding two sets of updates. Firstly it announced that it would be buying over Bedok Mall from its parent company Capitaland. Most of this will be funded by debt and some by issuance of additional units to its parent. Now, I'm not too excited about this move and whether the purchase adds significant value to CMT's portfolio. My parents still stay in Bedok and I frequent the mall occasionally. Let's just say that I have doubts that this is a superior mall and that the crowds that I witness are fantastic. The projected yield of c. 5% from this mall also is similar to the current yield of CMT's portfolio so again I don't see much of a quantum leap. Anyways, we wait with abated breath on how this develoment takes shape.
The second development is CMT's announcement of either refurnishing or divestinf Funan Digitamall. This to me is a good move as I have never been a fan of Funan and struggle to understand what is the added value of this IT centric mall. It has also seemed to be positioned awkwardly as people still somewhat flock to Sim Lim for IT related stuff. Get rid of this holding I say and so be it.
The above two developments just set me thinking on CMT's positionings and the retail landscape in Singapore. I currently U/W this sector and will not be looking to add unto my REITs positionings except probably for Mapletree Comm. whereby I see positive developments for Vivocity.
4. OCBC Bank - It was reported in the news recently that our 3 local banks, DBS, UOB and OCBC will be expected to report stable and good earnings. Let's see but I strongly feel that the current price of OCBC at $10.33 is grossly undervalued and has a long way up to go. I am looking to O/W this holding.
What else do you guys think? Let me know :)
Signing Off
Transitioning Stock Investor
I'm gonna post some comments of some of my holdings.
1. Raffles Medical - I seriously don't know what happened to this stock. It shot up c.4% yesterday and now I'm sitting on a nice 24% profit on this position. I definitely will look to add on in further but does anyone know what caused the sudden uptick in this counter's price movement? I O/W this company provided at more sensible prices.
2. Comfortdelgro - I added on 300 shares at $3.06 yesterday to this counter. This is after I took some money off the table 2000 shares at $3.21 before the Greek crisis unravelled. This turned out to be a pretty good move and I'll be looking to add on more shares to this company which I still favour alot (stable and strong ROE, strong cashflows and balance sheet, solid and diversified business model). I look to continually O/W this company.
3. Capitamall Trust - It was in the news recently regarding two sets of updates. Firstly it announced that it would be buying over Bedok Mall from its parent company Capitaland. Most of this will be funded by debt and some by issuance of additional units to its parent. Now, I'm not too excited about this move and whether the purchase adds significant value to CMT's portfolio. My parents still stay in Bedok and I frequent the mall occasionally. Let's just say that I have doubts that this is a superior mall and that the crowds that I witness are fantastic. The projected yield of c. 5% from this mall also is similar to the current yield of CMT's portfolio so again I don't see much of a quantum leap. Anyways, we wait with abated breath on how this develoment takes shape.
The second development is CMT's announcement of either refurnishing or divestinf Funan Digitamall. This to me is a good move as I have never been a fan of Funan and struggle to understand what is the added value of this IT centric mall. It has also seemed to be positioned awkwardly as people still somewhat flock to Sim Lim for IT related stuff. Get rid of this holding I say and so be it.
The above two developments just set me thinking on CMT's positionings and the retail landscape in Singapore. I currently U/W this sector and will not be looking to add unto my REITs positionings except probably for Mapletree Comm. whereby I see positive developments for Vivocity.
4. OCBC Bank - It was reported in the news recently that our 3 local banks, DBS, UOB and OCBC will be expected to report stable and good earnings. Let's see but I strongly feel that the current price of OCBC at $10.33 is grossly undervalued and has a long way up to go. I am looking to O/W this holding.
What else do you guys think? Let me know :)
Signing Off
Transitioning Stock Investor
Monday, 13 July 2015
Market Catalysts and Quick Portfolio Update
Looking at the current market today, there will be some short term catalysts that will be of interest.
Firstly, it has just been confirmed that an agreement has just been reached on a Greek bailout plan. This deal when voted into the Greek government will hopefully keep Greece in the Euro and Grexit will not occur. In fact, it further shows the solidarity of the Euro and keeps the other countries that went through austerity (ie Spain, Portugal, etc) happy. I see this as a positive catalyst.
In the Chinese stock market, I see a longer term systematic issue. Nevertheless, the recent moves by the Chinese government to steady the ship and prop the market up has went some way to steady the market. To me, in the long term the Chinese investor needs to learn from past lessons, but at least for now things look better than a few weeks ago. I similarly see this as a positive situation.
In terms of the local stock market, a slew of companies are poised to announce earnings with the next month. All of the stocks in my current portfolio are slated to announce earnings during this time period. I attach a nice screenshot of the positive price action today:
I await better results especially from the less performing companies: Sembcorp Industries and Jardine Matheson. I hope that my trust in these companies will pay off in terms of better earnings numbers.
I continue to be fairly confident in the earnings of the core companies in my portfolio: Singtel, OCBC, ComfortDelgro and Raffles Medical. I similarly expect the REITS in my portfolio to continue their good performance: Capitamall Trust and Mapletree Commercial Trust.
I will be taking a break from adding to positions in the current month as I continue to build my warchest. I recently sold a holding of Raffles Medical (at a profit of c.S$700) to fund a watch purchase. Oh well, all work and no play makes Jack a dull boy, but I definitely look to lessen such activities moving forward.
The markets do look very interesting now and some of the positions in my portfolio looking prime for adding, especially Singtel, ComfortDelgro and Raffles Medical. Will closely monitor these positions and update accordingly when I make stock additions. As of now, I relaxingly sit back and let the portfolio recover and continue to churn out its dividends.
Signing Off
Transitioning Stock Investor
Firstly, it has just been confirmed that an agreement has just been reached on a Greek bailout plan. This deal when voted into the Greek government will hopefully keep Greece in the Euro and Grexit will not occur. In fact, it further shows the solidarity of the Euro and keeps the other countries that went through austerity (ie Spain, Portugal, etc) happy. I see this as a positive catalyst.
In the Chinese stock market, I see a longer term systematic issue. Nevertheless, the recent moves by the Chinese government to steady the ship and prop the market up has went some way to steady the market. To me, in the long term the Chinese investor needs to learn from past lessons, but at least for now things look better than a few weeks ago. I similarly see this as a positive situation.
In terms of the local stock market, a slew of companies are poised to announce earnings with the next month. All of the stocks in my current portfolio are slated to announce earnings during this time period. I attach a nice screenshot of the positive price action today:
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| Watchlist of My Current Stock Portfolio (Source: sgx.com) |
I continue to be fairly confident in the earnings of the core companies in my portfolio: Singtel, OCBC, ComfortDelgro and Raffles Medical. I similarly expect the REITS in my portfolio to continue their good performance: Capitamall Trust and Mapletree Commercial Trust.
I will be taking a break from adding to positions in the current month as I continue to build my warchest. I recently sold a holding of Raffles Medical (at a profit of c.S$700) to fund a watch purchase. Oh well, all work and no play makes Jack a dull boy, but I definitely look to lessen such activities moving forward.
The markets do look very interesting now and some of the positions in my portfolio looking prime for adding, especially Singtel, ComfortDelgro and Raffles Medical. Will closely monitor these positions and update accordingly when I make stock additions. As of now, I relaxingly sit back and let the portfolio recover and continue to churn out its dividends.
Signing Off
Transitioning Stock Investor
Sunday, 28 June 2015
Portfolio Update - June 2015
Good Sunday Morning Folks!
Today's an interesting day as I sum up my portfolio for June and share the recent developments for the month.
In terms of portfolio additions, as shared earlier in the month I have added 1 lot of Singtel at $4.13. Subsequently in early last week, I added another lot of Sembcorp Industries at an attractive price of $3.91. Overall, I'm quite glad with the prices I paid for both companies as I thankfully managed to capture the downside of the price curve for both stocks. I also now see a nice recovery in the price of Sembcorp and hopefully the price recovers even further.
In terms of portfolio subtractions, I took profit on 2 lots of ComfortDelgro just last Friday before the market closed, locking in a 18% (36% annualised) profit. This leaves my current holdings of the counter at 2 lots. I pondered extremely long over this decision and as can be seen I seldom try to take profits as I do hold my holdings over the LT. However, I do have some concerns on the overall market with the bubble in the Chinese 'A' share market + Greek talks I found that it was a good opportunity to take some money off the table especially as I had made some good percentage profits already. I continue to overweight this company and will definitely accumulate more in future on price dips (this also means I am still overweight transport as an industry and I seek to maintain that).
Finally, in terms of dividends it was a really good month for me as other than May & August, June sees the most dividend payouts as I saw dividend inflows from Mapletree Comm. Trust, Raffles Medical and OCBC (both of which I elected to receive dividends by DRIP).
Here's a summarised look of my holdings and dividend records and trends at the end of June 2015:
I still love the look of my portfolio and struggle to find good companies to add unto it. As such my near-term strategy over the next 6 months is to continue to find good opportunities to add unto my current holdings and to increase my dividend stream consequently. That's it from me this weekend and have a great week ahead!
Today's an interesting day as I sum up my portfolio for June and share the recent developments for the month.
In terms of portfolio additions, as shared earlier in the month I have added 1 lot of Singtel at $4.13. Subsequently in early last week, I added another lot of Sembcorp Industries at an attractive price of $3.91. Overall, I'm quite glad with the prices I paid for both companies as I thankfully managed to capture the downside of the price curve for both stocks. I also now see a nice recovery in the price of Sembcorp and hopefully the price recovers even further.
In terms of portfolio subtractions, I took profit on 2 lots of ComfortDelgro just last Friday before the market closed, locking in a 18% (36% annualised) profit. This leaves my current holdings of the counter at 2 lots. I pondered extremely long over this decision and as can be seen I seldom try to take profits as I do hold my holdings over the LT. However, I do have some concerns on the overall market with the bubble in the Chinese 'A' share market + Greek talks I found that it was a good opportunity to take some money off the table especially as I had made some good percentage profits already. I continue to overweight this company and will definitely accumulate more in future on price dips (this also means I am still overweight transport as an industry and I seek to maintain that).
Finally, in terms of dividends it was a really good month for me as other than May & August, June sees the most dividend payouts as I saw dividend inflows from Mapletree Comm. Trust, Raffles Medical and OCBC (both of which I elected to receive dividends by DRIP).
Here's a summarised look of my holdings and dividend records and trends at the end of June 2015:
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| Transitioning Stock Investor - Portfolio Holdings June 2015 |
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| Transitioning Stock Investor - Portfolio Dividend Trends June 2015 *Note that future dividend trends are projected based on historical dividend payouts |
I still love the look of my portfolio and struggle to find good companies to add unto it. As such my near-term strategy over the next 6 months is to continue to find good opportunities to add unto my current holdings and to increase my dividend stream consequently. That's it from me this weekend and have a great week ahead!
Signing Off
Transitioning Stock Investor
Monday, 15 June 2015
Portfolio Update #2
Following on from my previous portfolio update, I'll be commenting on some of the other stocks in my portfolio. I'll be focussing on OCBC solely for today, due to the amount of information I have to write on it.
1. OCBC Bank
- I currently am holding 2 lots of this bank stock, with some additional odd shares due to dividend reinvestment.
- For me a good portfolio should have some exposure to financials, as they represent the heartbeat of a robust economy. Businesses generally need cashflow and loans to function and this also spreads down to the common consumer like us be it in credit, investments or deposits.
- The thing I really like about OCBC is its healthy dividend yield and that I'm able to participate in the 'DRIP' program. For those who are unfamiliar with 'DRIP' it stands for Dividend Reinvestment Program, whereby you can elect to receive dividends in the form of shares. Much like how an 'accumulation' share class of a unit trust works. This program is really quite brilliant as I leverage on it to compound my portfolio returns effectively.
- What I also like about OCBC is its standing as a solid and safe bank, with good capital adequacy ratios. Its current P/E of 9.7 and P/B of just 1.23 represent fantastic value to me too. Its expansion in HK due to the Wing Hang acquisition looks to have been fully integrated into the business. NIM margins also are expected to be healthy due to the potential increase in US rates, most probably end of the year.
- There are some potential headwinds as well, most notably the general health of the global economy (Greek debt, potential Chinese A share bubble, amongst others). Also a slowdown in certain businesses such as loan issuances, higher defaults, etc pose some concern too. However, I do not expect these headwinds to pose significant or immediate threats to the business.
- In summary, I strongly feel that OCBC is pretty attractively valued at the current price of $10.03. Any price below $10 looks like a viable entry point. Again to me short term pricings should not matter as much but at the current price it does look prime for picking.
Alrighty, I've share my views on OCBC Bank which is one of the key holdings in my portfolio. What do you guys think?
Signing Off
Transitioning Stock Investor
1. OCBC Bank
- I currently am holding 2 lots of this bank stock, with some additional odd shares due to dividend reinvestment.
- For me a good portfolio should have some exposure to financials, as they represent the heartbeat of a robust economy. Businesses generally need cashflow and loans to function and this also spreads down to the common consumer like us be it in credit, investments or deposits.
- The thing I really like about OCBC is its healthy dividend yield and that I'm able to participate in the 'DRIP' program. For those who are unfamiliar with 'DRIP' it stands for Dividend Reinvestment Program, whereby you can elect to receive dividends in the form of shares. Much like how an 'accumulation' share class of a unit trust works. This program is really quite brilliant as I leverage on it to compound my portfolio returns effectively.
- What I also like about OCBC is its standing as a solid and safe bank, with good capital adequacy ratios. Its current P/E of 9.7 and P/B of just 1.23 represent fantastic value to me too. Its expansion in HK due to the Wing Hang acquisition looks to have been fully integrated into the business. NIM margins also are expected to be healthy due to the potential increase in US rates, most probably end of the year.
- There are some potential headwinds as well, most notably the general health of the global economy (Greek debt, potential Chinese A share bubble, amongst others). Also a slowdown in certain businesses such as loan issuances, higher defaults, etc pose some concern too. However, I do not expect these headwinds to pose significant or immediate threats to the business.
- In summary, I strongly feel that OCBC is pretty attractively valued at the current price of $10.03. Any price below $10 looks like a viable entry point. Again to me short term pricings should not matter as much but at the current price it does look prime for picking.
Alrighty, I've share my views on OCBC Bank which is one of the key holdings in my portfolio. What do you guys think?
Signing Off
Transitioning Stock Investor
Friday, 29 May 2015
Thoughts on the Market - 29th May 2015
Day's off for me today. As I settle down for the long weekend, I'm at my laptop thinking about what has happened in the market during the week. Yes, we may ask.....what happened???
As most of us may know, the Chinese Stock Market plunged more than 6% yesterday. As I'm watching CNBC, I'm also seeing a lower pre-opening price for most of the Chinese stocks. Pundits are gunning for a 3% rebound, so let's see where that heads.
What does the above Chinese market sell-off spell for the Singapore stock market? Inadvertently, there is a similar spooking of the market. Most of the stocks in my portfolio (barring Raffles Medical) are trading mostly downwards this morning.
In the past, whatever that we have witnessed would have similarly spooked me and I may have just closed my laptop and just avoided the market with a ten foot pole. However, as my investment maturity grew (that was of course due to witnessing the 2008 GFC, Fed taper tantrum, Oil shocks, etc) I begin to look at this period as a great opportunity to invest in the stocks that I like.
This brings me back to my previous post whereby I wrote at length about Singtel. The current price of $4.09 does look extremely attractive and I would probably add another lot if the price hovers around those levels for the next couple of weeks. We'll see.
OCBC Bank does look interesting as well at its current price of $10.14. It has fallen quite substantially below my average cost of $10.34 for my existing holdings so probably this is an area that I may be seeking to increase my holdings. You may refer to my current portfolio (in my previous post) for a guidance on what stocks that I'm 'focussing' on.
To reiterate my thoughts for the market today. What goes up, does have to come down. The Chinese market has been red-hot and the pull-back was as inevitable as ice melting on a hot bonnet of a black car in a 33 degrees day in Singapore. However, what this does is also present us opportunities to invest in the Singaporean market with bargain opportunities galore.
I hope you can find your set of bargain opportunities as well.
Signing Off
Transitioning Stock Investor
As most of us may know, the Chinese Stock Market plunged more than 6% yesterday. As I'm watching CNBC, I'm also seeing a lower pre-opening price for most of the Chinese stocks. Pundits are gunning for a 3% rebound, so let's see where that heads.
What does the above Chinese market sell-off spell for the Singapore stock market? Inadvertently, there is a similar spooking of the market. Most of the stocks in my portfolio (barring Raffles Medical) are trading mostly downwards this morning.
In the past, whatever that we have witnessed would have similarly spooked me and I may have just closed my laptop and just avoided the market with a ten foot pole. However, as my investment maturity grew (that was of course due to witnessing the 2008 GFC, Fed taper tantrum, Oil shocks, etc) I begin to look at this period as a great opportunity to invest in the stocks that I like.
This brings me back to my previous post whereby I wrote at length about Singtel. The current price of $4.09 does look extremely attractive and I would probably add another lot if the price hovers around those levels for the next couple of weeks. We'll see.
OCBC Bank does look interesting as well at its current price of $10.14. It has fallen quite substantially below my average cost of $10.34 for my existing holdings so probably this is an area that I may be seeking to increase my holdings. You may refer to my current portfolio (in my previous post) for a guidance on what stocks that I'm 'focussing' on.
To reiterate my thoughts for the market today. What goes up, does have to come down. The Chinese market has been red-hot and the pull-back was as inevitable as ice melting on a hot bonnet of a black car in a 33 degrees day in Singapore. However, what this does is also present us opportunities to invest in the Singaporean market with bargain opportunities galore.
I hope you can find your set of bargain opportunities as well.
Signing Off
Transitioning Stock Investor
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