Overview / Reflections of ST Portfolio 2013 .

Overview of ST- Portfolio 2013

Courtesy of Portfolio Tracker from investmentmoats.com

Vested- 1 lot of ST Engineering  @ $3.79.  ( Strong fundamentals , solid blue chip with U.S dealings)

Divested - 5 lots of Freightlinks @0.105  ( now known as Vibrant Group ) loss of $180 . ( Apparently Freightlinks Express had renamed to Vibrant Group . Not a good sign in my own opinion as it has been in affiliation with one of the " Mega Church " in Singapore though interest of 6% per annual  had been charged through borrowings and substantial shares of  Suntec Reit might indirectly benefit the growth of Vibrant Group . Fundamentals of Freightlinks in 3QR were disappointing  , and focus of shift towards from logistics to invesments and properties had prompt me to cut loss .)


Valuetronics might be the best investments so far i had made during august with price of less than 20 cents and cost on yield of 7.60% .

Personal Self Reflection

It has been a "tapered " year with news of tapering spreading like wild fire in 2013 and finalised in the upcoming months which we are going to enter in year 2014 .

"Taper Breakdown

The Fed’s purchases will be divided between $40 billion in Treasuries and $35 billion in mortgage bonds starting in January, down from $45 billion of government securities and $40 billion of the home-loan securities it’s buying each month now."http://www.bloomberg.com/news/2013-12-18/riskiest-retail-bond-spreads-widen-credit-swaps-hold-before-fed.html

I had finally achieved my target set of 10k portfolio ( All right this is very very small compared to many other peers here ) , well it's still an achievement for me .

Peers in my bloglist had really taught me alot with aspect not just interms of investments but also life, philosophies ( Uncle CreateWealth , ASSI & SMOL ). Through blogging , it has enriched my knowledge .

To end with a quote by Bruce Lee : “All knowledge leads to self-knowledge.” 
― Bruce Lee, Tao of Jeet Kune Do

  Last but not Least , Merry Christmas and Happy New year to All . Huat la !!

10 Reasons That Stopping You to Be Rich

Just Chanced upon this article featured on Yahoo ( http://sg.finance.yahoo.com/news/10-reasons-youll-never-rich-050001764.html )

The title captured my attention and here it goes  :

10 Reasons You'll Never Be Rich

1) Spending too much. 

2) Saving too Little.

3)Carrying too much debt.

4)Paying too many fees.

5)Passing up free money.

6)Neglecting Retirement.

7)Buying High and Selling Low.

8)Retiring too early.

9) Buying everything new.

10) Not investing in yourself.

So how many points did it hit you on your spot ? 

Ps : on a side track , a quick update of my portfolio : Received Dividends (Oct- Nov 2013) : $21.26 (Cache Log)+ $19.60 ( First Reit ) + $ 25 ( Freight Links  now known as Vibrant Group ) = $65.26

Total Dividends Collected  ( June - Nov 2013 ) $108.74 + $65.26 = $174

Invest the way you'd like to live .

As per title referred to an article in " The Sunday Times " Nov 3 , 2013 invest section by Senior Correspondent , Goh Eng Yeow .

A summary of observations about human nature - how it can change the way we live our lives , and for that , how we invest matter made by Clayten Christensen ( a best-selling writer whose works have profound impact on how big United  States  companies like Intel run their business.)For instance , we unconsciously allocate resources that offer us immediate gratification .

A fine example noted by Mr Christensen would be on how we put in enormous efforts into our careers , offers the most concrete evidence through steady rank progress. In contrast , fewer and fewer people are spending time and energy with their spouses and children  because nurturing such relationships fails to give the same sense of immediate satisfaction .

Through this , it may very well apply to how we invest our money . Many numerous professionals claimed themselves to be serious investors , yet in the next minute , they might be asking  " Got any good stock to buy anot ? Any inside information ? " ( How many of you did it ? I admit i do .)

Many people would have think that the stock market as a venue to make a quick buck and condone any small lapses  without realising the later consequences that could befall them .

Mr Christensen said " A voice in our head would say as a general rule , most people shouldn't do this . But in this particular extenuating circumstance, just this one , it is OK . The marginal cost of doing something wrong 'just this once ' seems alluringly low. It suckers you in and you don't ever look at where that path ultimately is headed and at the full costs that the choice entails."

His observation reflects on temptation to chase after loss-making penny stocks when we see our friends making big bucks while we watch like fools from sidelines wishing that we had joined in the fun as well.
Despite knowing the fact that we will violate the original objective to exercise prudence in growing our nest egg.

Thus when crash comes , penny stocks bubble bursts and we blamed the media and authorities for not doing more to stop our greed slaughtering.

The lesson learnt : " Keep your eye on long term rather than be tempted to make a quick buck "

Mr Christensen faces up to cancer and the possibility that his life might end sooner than planned.

Cache / First Reit FR

Cache Reit 3rd Quarter FR  

• Dpu at 2.126 cents ( formerly 2.144 ( -0.8%))
• Gearing ratio of 29.2%
• Nav of 0.97 
• Epu of 1.89 (formerly 1.90)
• Distributable ( 16.5m) income grew 9.6%( increase of 1.4m ) 
• No debt refinancing till 2015.  

First Reit 3rd Quarter FR 

• Dpu at 1.96 cents ( formely 1.68 ( 16.7%))
• Gearing ratio of 33.40%
• Nav of 0.955 
• Epu of  1.72 cents ( formerly 1.57 cents)
• No refinancing needs till 2016

On a side track for First Reit  ," While the Indonesian government has raised the benchmark interest rate to 7.25% on 12 September 2013 to deal with inflation and the weakening Rupiah, its healthcare policies remained unchanged. Its universal healthcare programme is expected to begin in 2014 and under this scheme, healthcare insurance will be provided for its citizens so that they can get free access to community healthcare centres and government hospitals. This scheme is targeted to cover all Indonesians by 2019. 

 As such, this will drive demand for better quality and faster private medical facilities from the 

 growing middle-class and the younger Indonesian consumers who seek these services."

Information could be found here

S-T Sept Portfolio Update

-Bought Valuetronics , FreightLinks , First Reit
-Sold Cache Log ( -$330 loss) , bought back Cache Log , Sold  Far East Hospitality  ( -$430 loss)

Dividends collected from 2013 ( June to Sept )  - $108.74

Bernanke "shocked " the market by doing nothing to the taper during the focm .

S-T Portfolio Update

The market has been in  a " slump " mode few weeks back with anticipation of  Fed bonds gradual reduction  with 85b which FOMC would have their minutes coming out on 21 Aug .

http://www.bloomberg.com/news/2013-08-19/u-s-stock-index-futures-little-changed-edwards-jumps.html

How would Mr Market react ? Would he slump or stabilise ?

U.S. housing starts rose 5.9% from June to a seasonally annual rate of 896,000 from June’s revised figure of 
846,000. This was less than expectations of 900,000.

Consumer confidence unexpectedly dropped in August from a six-year high as Americans faced rising interest rates.

With news of tapering and rising interest , Reits  have been hit hard . Had divested Both Feht and Clt to cut loss. The yield has started to be attractive i would say but the risk of uncertainty looms . 

Would seek opportunities in the upcoming months but not probably in Sept . 

S-T Portfolio Update

Alright will receive advanced distributions of approximately 1.9 cents from Feht and earlier on from Clt in the month of Aug and Sept .

Things to take note would be the tapering from Fed as the the jobless reduced.,http://www.bloomberg.com/news/2013-07-06/u-s-employers-added-more-workers-in-june-than-forecast.html  and the declining PMI of China .

Fed Meeting

"Fed officials next meet July 30-31 in Washington, yet they will not update their economic forecasts, and Bernanke isn’t scheduled to hold a press conference after that meeting. By the time of the September meeting, the Labor Department will have published jobs reports for July and August, giving the Fed more information to make a decision."

PS: This would certainly sounds an "uncertainly danger. " 

Missed the boat of Neratel that shot up from 0.61 to 0.73 within a week (Neratel has high chance of winning the official bid from Telenor and Ooredoo through their past supplied services with them . Both of Telecoms need lots of support from their supplier base such as Neratel as Both Telecoms target to cover 75% voice services and 50% data services within next 5 years of Myanmar .Neratel has also been deploying payment solutions terminals in the biggest bank operating in Myanmar.  )

S-T Portfolio Update

Loaded Cache Logistic Trust .  Below  shall do the illustration :

Properties under Cache 

-Strategically located near the logistic ports such as Changi Airport , PSA Terminals , Jurong port  for Singapore .  While ermm for China , Shanghai , (near to Hang Zhou Bay ? But quite a distance to the Airport  ).

Strong and Diverse Demand by Underlying End-Users

-Cache's portfolio enjoys a high underlying occupancy by end-users, majority of which are multinational corporations. The end-users are also diversified by trade sectors such as industrial and commercial goods, commodities and chemical sectors, food and cold storage, aerospace, healthcare, courier services and hospitality.

Stability of Cash Flows from Long Term, Triple Net Master Leases

-12 properties are on master lease agreements. Only APC Distrihub is a multi-tenanted property. The triple net ("NNN") master lease agreements provide for long lease tenures ranging from three to 10 years with locked-in annual rental escalations, providing Cache with a stable income stream. Multi-tenancy properties, on the other hand, provide potential positive rental reversions, which contribute to organic income growth within the portfolio.

High Occupancy in Underlying Portfolio

-Cache enjoys a 100% occupancy level, which means no expiry of lease issues . ( When you see your report card is 100% , you will also feel happy ).

Source:http://www.cache-reit.com/property_overview_of_portfolio.html

On a side note , the month of may and onwards will be volatile as FED Chairman  Bernanke's words of QE tapering , reducing of bond purchases , amid of Central Banks from Toyko to Europe declines to add stimulus  swept through the market . 

Crossed fingers as there are currently no clear instructions according to the situation seen . 

Ps: The bloodbath ( which actually to some people is not even consider yet) had taught me to have patience and be more disciplined . Nevertheless , i am targeting at some stocks given at the ideal price for me to invest again . In courtesy of  Dividendswarrior 's " Keep Calm and Carry on " .  Mine would be : 

S-T Portfolio Update

Next Dpu would be 1.38 cents on 14Jun .  Vested as seen potential growth in this stock with upcoming downtown line which projected to be completed in  2017 , which would benefit the amenities around it . 

Downtrend would be pandemic disease (Such as H7N9 , Sars etc ) that will hit hard on the Hospitality Business and competiton from the same trade .  

 There are upgrades plans for Albert Court Village Hotel and Regency House .

Changi Village Hotel, which is experiencing weakness from new competition in the vicinity, is undergoing soft refurbishment though . 

FEHT is expected to complete the acquisition of Grand Hotel Rendezvous by Aug 2013.

Properties Under  FEHT  : 

Ps : "of course FEHT is under the arm of powerhouse , Far East Organization , Largest Private Property Developer which was founded by late Mr Ng Teng Fong ".Another  "Bias" reason would be my favourite area , Hougang which is part of it . " 

CapitaMall Trust...Potential to rock on to 2013/2014.

CapitaMall Trust 

http://capitamall.listedcompany.com/misc/ar2012.pdf

Opening of WestGate Mall in 2014 , Strategic Location of Malls in the central area ( interception of  all MRT colour lines) 

Current yield is ard 4.4% - 4.5% . Has potential to rise back near $3 ( Dated 5 yrs back before the crisis) , but current situation is uncertain due to Cyrups , ECB and Properties Curb issues . 

Overall constant distributions over past 10 yrs ( even during the subprime crisis)  and has an investment rating of  'A' . 

PS: Quite surprised that Rivervale Mall is under CMT too 

Huat 蛇字(Hokkein) Year !

 A Very Happy Chinese New Year  and wishing All  Best in  the Year of

Huat la ! 

Phillip Arthur Fisher

The "Low Profile" Investor  

Philip Arthur Fisher was an American stock investor best known as the author of Common Stocks and Uncommon Profits, a guide to investing that has remained in print ever since it was first published in 1958.

He was a very private person, giving few interviews, and was very selective about the clients he took on. He was not well-known to the public until he published his first book in 1958. At this point Fisher's popularity rose dramatically and propelled him to his now legendary status as a pioneer in the field of growth investing.

Warren Buffett on some occasions  had mentioned that he is " 85%  Graham and 15% Fisher  " 

So here is the investment philosophy of  Phillip A Fisher .

1) Buy into companies that have disciplined plans for achieving dramatic long -range growth in profits and have qualities making it difficult for new comers to share in that growth . 

2) Focus on buying companies when they are out of favour , that is , when either because of general market conditions or because the financial community at moment has misconceptions of its true worth , stock is selling at prices well under what it will be when true merit is better understand .

3) Hold the stock until either  (1)  there has been a fundamental change in its nature or (2) it has grown to a point where it no longer will be growing faster than the economy as whole . Never sell the most attractive stocks for short term reasons . When management fail to grow as companies grow ( Small companies fail to change management style to meet different requirements of skill big companies need) , shares should be sold . 

4) For those primary seeking major appreciation of capital , de-emphasize the importance of dividends . Most attractive opportunities are most likely to occur in profitable , but low or no dividend payout groups. Unusual opportunities are much less likely to be found in situation where high percentage of profits is paid to stockholders. 

5) Making some mistakes is as much as an inherent cost of investing for major gains as making some bad loans is inevitable in even the best run and most profitable lending institution. The important thing is to recognize them as soon as possible , to understand their causes , and to learn how to keep from repeating the mistakes . 

6) There are a relatively small number of truely outstanding companies . Their shares frequently can't be bought at attractive prices . Therefore , When favourable prices exist full advantage should be taken of the situation . For Larger companies , proper diversification requires investing in a variety of industries with different economic characteristics. For individuals  , any holding of over twenty different stock is a sign of financial incompetence as an individual's holdings climb towards as many as twenty stocks , it nearly always desirable to switch from Least attractive of these stocks to more of attractive . It should be remembered that ERISA stands for Emasculated results : Insufficient Sophisticated Action . 

7) Basic ingredient of outstanding common stock management is the ability neither to accept blindly whatever maybe the dominant opinion in the financial community at moment nor to reject the prevailing view to be contrary for sake of being contrary . Rather it is to have more knowledge and to apply better judgement , in thorough evaluation of specific situation and moral courage to act " in opposition to crowd " when your judgement tells you , you are right . 

8) In handling common stocks , as in most of other fields of human activity , success greatly depends on a combination of hardwork , intelligence , and honesty .