Wednesday, October 7, 2020

Mike vs Newbie Energy Challenge!

Mike and Newbie were discussing on whether Energy ETF or individual energy stock pick would work better in the current virus ravaged market.

Mike picked XLE.

Newbie picked Shell.

Let's start tracking!

https://finance.yahoo.com/quote/XLE/

https://sg.finance.yahoo.com/quote/RDSB.L/


Close of 6th October 2020 (Start Date)

XLE = USD 29.74

Shell = GBp 953.60


Tuesday, October 6, 2020

Newbie Portfolio - End 2020 09

Looking at the current market, it is unlikely that I will be investing into any new positions with this mini portfolio until I sell something. Therefore, I decided not to keep the idle SGD cash in the portfolio (earning 0% interest) and switched it into USD to reduce my USD loan (saving loan interest).

Portfolio Performance (Start Date: End November 2019 with SGD400k Cash)


Portfolio performance is dragged down by the poor price performance of Shell. Oil outlook remains weak but I would take a long term view (stuck?!) on this blue chip equity. Having hard energy assets on its books and access to cheap financing, I have confidence in Shell's long term performance. Of course, it would be prudent to keep an eye on Shell's PE ratio over the next few financial results.

Looking back at the past months, I would regret venturing into equities as they have been the cause of my portfolio's poor performance (realised big loss on Keppel corp and unrealised loss on Shell). Fixed Income on the other hand is performing well and will continue to perform well in the current low interest rate environment (at least till 2023 and beyond!). With locked in coupons exceeding 5% p.a., they will continue to be the earner behind the scenes to provide stable income, and hopefully slowly earn back the losses from the equities.





Current Portfolio Margin Value:

a) Cash of SGD1,141.23

b) SGD277,337.09 x 0.6 = SGD166,402.25

c) SGD247,080.48 x 0.5 = SGD123,540.24

d) SGD89,412.09 x 0.8 = SGD71,529.67

e) SGD49,570.56 x 0.8 = SGD39,656.45

Total Portfolio Margin Value = SGD402,269.84

Total Liabilities = SGD350,855.60

Margin Ratio = 87.2%


Regards, Newbie

This blogpost is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.

Friday, September 4, 2020

Newbie Portfolio - End 2020 08

No action was taken for the month. Just waiting.

Portfolio Performance (Start Date: End November 2019 with SGD400k Cash) 


Portfolio continues the recovery process of earning back the loss from Keppel Corp. I'm glad I cut loss on Keppel Corp before the announcement by Temasek to invoke the Material Adverse Clause to terminate the partial takeover at $7.35.




Current Portfolio Margin Value:

a) Cash of SGD69,220.43
b) SGD282,733.60 x 0.6 = SGD169,640.16
c) SGD251,104.45 x 0.5 = SGD125,552.23
d) SGD106,626.20 x 0.8 = SGD85,300.96
e) SGD57,726.05 x 0.8 = SGD46,180.84

Total Portfolio Margin Value = SGD495,894.62

Total Liabilities = SGD432,806.06

Margin Ratio = 87.3%

Regards,
Newbie

This blogpost is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.

Monday, August 10, 2020

Effective Annual Interest Rate Calculations

Our beloved Addict951 had a question on how Citibank calculated the 9.78% EIR published on their website.

https://www.citibank.com.sg/loans/paylite/index.htm

$250 loan with upfront 2% service fee with 6 equal instalment payables.

On face value the EIR appears to be way lesser. However, it is way MORE! In fact, Citibank is correct to publish the EIR figure at 9.78%.

This is because this is a loan (like a car loan) where interest is being charged based on the ORIGINAL PRINCIPAL (what a crappy method right?).


Thursday, August 6, 2020

Newbie Portfolio - End 2020 07

No action was taken for the month. Just waiting.

Portfolio Performance (Start Date: End November 2019 with SGD400k Cash) 



Portfolio continues the recovery process of earning back the loss from Keppel Corp. Nothing much else to comment.


Current Portfolio Margin Value:

a) Cash of SGD69,215.33
b) SGD275,802.06 x 0.6 = SGD165,481.24
c) SGD252,383.56 x 0.5 = SGD126,191.78
d) SGD100,012.20 x 0.8 = SGD80,009.76
e) SGD59,739.80 x 0.8 = SGD47,791.84

Total Portfolio Margin Value = SGD488,689.95

Total Liabilities - SGD435,083.79

Margin Ratio = 89.0%

Regards,
Newbie

This blogpost is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.

Monday, July 20, 2020

Track Mike's Recommendations

17th July 2020, Friday Close.
IHI = USD286.11
XBI = USD118.74

24th July 2020, Friday Close.
IHI = USD289.21
XBI = USD112.23

8th September 2020, Friday Close.
IHI = USD289.83
XBI = USD103.87

Monday, July 6, 2020

Newbie Portfolio - End 2020 06

No action was taken for the month. Just waiting.

Portfolio Performance (Start Date: End November 2019 with SGD400k Cash) 


 
Portfolio continues the recovery process of earning back the loss from Keppel Corp. Nothing much else to comment.




Current Portfolio Margin Value:

a) Cash of SGD69,458.15
b) SGD273,990.61 x 0.6 = SGD164,394.37
c) SGD250,543.66 x 0.5 = SGD125,271.83
d) SGD99,711.33 x 0.8 = SGD79,769.06
e) SGD62,931.88 x 0.8 = SGD50,345.50

Total Portfolio Margin Value = SGD489,238.91

Total Liabilities - SGD433,932.25

Margin Ratio = 88.7%

Regards,
Newbie

This blogpost is provided to you for general information only and does not constitute a recommendation, an offer or solicitation to buy or sell the investment product mentioned. It does not have any regard to your specific investment objectives, financial situation or any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of your acting based on this information.