Stock radar alert! I have a stock that I might be adding to my portfolio.
And the stock is.....Jardine Matheson Holdings.
I generally like the idea of conglomerates as businesses and Jardine fits the bill well. I especially like their supermarket and insurance parts of the business. I have always been a fan but didnt have the capital to invest but thanks to the smaller lot sizes i can take a nibble. The price is also looking pretty attractive too now.
Only slight hurdle is that the stock is in USD so I would need to sort out my multi-currency account. But shouldnt be a biggie.
Will update again when the stock is added, probably later in the week.
Signing off
Transitioning Stock Investor
Tuesday, 30 June 2015
Sunday, 28 June 2015
How much is enough in order to be able to invest Full Time?
Was just wondering about this as we end off the weekend. This question has always been running through my mind.
How much is enough in order to be able to invest full-time and probably find a part-time job that we enjoy doing?
What yield should this portfolio generate to be considered adequate and/or good?
How much? What do you guys think? I really wanna know. Do share with me folks what you guys think.
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
Thursday, 25 June 2015
Thoughts on the Market - 25 June 2015
Wow, what an eventful recent few weeks we have had. We saw the Fed being dovish on rates, the China 'A' share market taking a nosedive 'again' and most importantly the threat on a 'Grexit'
So I ask myself again what should I be doing in such a market environment whereby it is fraught with 'Ifs' and 'Hows'.
I found it important again to remember this. Stay invested, buy on dips and keep a warchest for eventual corrections. I also realised that I have repeated this process over time and it always works. The key to success in investing is this: Know what you are buying, keep emotion out of investing, have a plan and always think LONG TERM. Avoid trading the market and you already have half the battle won.
Remember this again, be the tortoise and beat the hare at the investing race!
Signing off
Transitioning Stock Investor
So I ask myself again what should I be doing in such a market environment whereby it is fraught with 'Ifs' and 'Hows'.
I found it important again to remember this. Stay invested, buy on dips and keep a warchest for eventual corrections. I also realised that I have repeated this process over time and it always works. The key to success in investing is this: Know what you are buying, keep emotion out of investing, have a plan and always think LONG TERM. Avoid trading the market and you already have half the battle won.
Remember this again, be the tortoise and beat the hare at the investing race!
Signing off
Transitioning Stock Investor
Monday, 22 June 2015
Sembcorp Industries - Updated Holdings
Hey Guys,
Quick update. I added 1 pop of Sembcorp Industries today at the price of $3.91. This brings my average cost of this counter down to $4.26 from $4.43. This position I'm fairly confident should pay off, especially when the following happens:
- Sembcorb's share price converges with the price of oil.
I did a simple comparison of the share price vs WTI oil and there is a obvious divergence seen. I expect some levels of convergence, something which when extrapolated over time has shown to recur consistently.
- Market realises that Sembcorp is good value currently
All ratios, be they P/B, P/E etc all point to good value for the company
- Sembcorp's businesses pick up
I know we have all recently read their declining margins, businesses not doing well, falling revenue and asset turnover etc. However i like their overall business and strongly feel that they will revert to mean in the long run. Most of their businesses, marine included are fairly important and I expect again mean reversion in the LT.
Shall monitor the market closely for other developments but feeling glad on the addition today. Again one must take a long term view for this view to true play itself out positively.
Signing off
Transitioning Stock Investor
Quick update. I added 1 pop of Sembcorp Industries today at the price of $3.91. This brings my average cost of this counter down to $4.26 from $4.43. This position I'm fairly confident should pay off, especially when the following happens:
- Sembcorb's share price converges with the price of oil.
I did a simple comparison of the share price vs WTI oil and there is a obvious divergence seen. I expect some levels of convergence, something which when extrapolated over time has shown to recur consistently.
- Market realises that Sembcorp is good value currently
All ratios, be they P/B, P/E etc all point to good value for the company
- Sembcorp's businesses pick up
I know we have all recently read their declining margins, businesses not doing well, falling revenue and asset turnover etc. However i like their overall business and strongly feel that they will revert to mean in the long run. Most of their businesses, marine included are fairly important and I expect again mean reversion in the LT.
Shall monitor the market closely for other developments but feeling glad on the addition today. Again one must take a long term view for this view to true play itself out positively.
Signing off
Transitioning Stock Investor
Tuesday, 16 June 2015
Portfolio Update #3 Sembcorp Industries
This is the 3rd instalment of my portfolio update and this is where it becomes interesting. I will be touching on Sembcorp Industries today, a stock in which I own 2 lots of. This stock represents the Industrials segment of the sector allocation within my portfolio.
Share Price
As can be seen above, the share price of the stock has been seeing a steady decline since Aug 2014 last year. This as we all know can be attributed mostly to the fall in oil price over the same period. The average cost of my holdings is $4.43, so this is around halfway of the peak to trough price.
Pros of Sembcorp
The reason why I commented that this post is interesting is because I truly do not know or have a good gauge where the share price of this company is heading to in the near future. On one hand I know that there is a solid business model in place for Sembcorp and I was not only focussed on their O&G businesses when I bought the stock. I also greatly favoured their utilities and waste management businesses, sectors which I found important and necessary in any market environment.
The dividend payout and yield of the company has been excellent as well and has been really consistent over the years.
Cons of Sembcorp
Neverthless, the company could not escape the eventual impact of a low oil price and its effect on its margins and marine segment of the business. I also re-studied their latest financial statements last evening and the numbers do paint a pale picture of their businesses. Overall, turnover and margins have been falling with also a drop in free cash flow generated. Debt levels are increasing for the company which is inevitable for a capital intensive company. Lessons previously learnt from a local water management company which can be read in my previous post on "Due Diligence" and the importance of throwing caution to capital intensive companies still ring fresh in my mind.
Valuation
Usually I have strong conviction in my portfolio holdings and when the price falls I usually average down due to that conviction. However, using the Graham's discount model (will not furnish the valuation here, as this is just used as an estimate) the fair value for the company that I have derived at is still at a level that is lower than its current share price. Do note that this is not a recommendation to you to buy or sell the stock but just a valuation guide that I have used to help determine my investment decision.
Summary
I may probably add holdings of this position if I see a turnaround in prospescts of the company moving forward. At the current moment, I'm adopting a wait and see approach as there are just too many potential headwinds and questions left to be answered.
Signing Off
Transitioning Stock Investor
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| Sembcorp Ind. 1 year share price (Source: Bloomberg） |
Share Price
As can be seen above, the share price of the stock has been seeing a steady decline since Aug 2014 last year. This as we all know can be attributed mostly to the fall in oil price over the same period. The average cost of my holdings is $4.43, so this is around halfway of the peak to trough price.
Pros of Sembcorp
The reason why I commented that this post is interesting is because I truly do not know or have a good gauge where the share price of this company is heading to in the near future. On one hand I know that there is a solid business model in place for Sembcorp and I was not only focussed on their O&G businesses when I bought the stock. I also greatly favoured their utilities and waste management businesses, sectors which I found important and necessary in any market environment.
The dividend payout and yield of the company has been excellent as well and has been really consistent over the years.
Cons of Sembcorp
Neverthless, the company could not escape the eventual impact of a low oil price and its effect on its margins and marine segment of the business. I also re-studied their latest financial statements last evening and the numbers do paint a pale picture of their businesses. Overall, turnover and margins have been falling with also a drop in free cash flow generated. Debt levels are increasing for the company which is inevitable for a capital intensive company. Lessons previously learnt from a local water management company which can be read in my previous post on "Due Diligence" and the importance of throwing caution to capital intensive companies still ring fresh in my mind.
Valuation
Usually I have strong conviction in my portfolio holdings and when the price falls I usually average down due to that conviction. However, using the Graham's discount model (will not furnish the valuation here, as this is just used as an estimate) the fair value for the company that I have derived at is still at a level that is lower than its current share price. Do note that this is not a recommendation to you to buy or sell the stock but just a valuation guide that I have used to help determine my investment decision.
Summary
I may probably add holdings of this position if I see a turnaround in prospescts of the company moving forward. At the current moment, I'm adopting a wait and see approach as there are just too many potential headwinds and questions left to be answered.
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
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