Wednesday, August 6, 2008

My stocks portfolio - Jul 2008 (Corrected)

My overall portfolio was down by 21.69% at the end of July. Like in the previous months, fresh funds were injected into my stocks portfolio this month as well. As long as I see opportunities or value buys, I will continue to buy regularly in future.

There were two transactions for the month of July.
Bought Capitacomm, price at $2.008
Bought Vanguard Emerging Markets, price at USD$45.98

Latest quarterly report for Capitacomm was out on the 23 July. Distributable income for first half of 2008 rose by 22.7% to 5.19 cents as compared to first half of 2007. Despite a slowdown in global economy, so far there isn’t any significant impact to most of the Singapore REITS after they reported their latest earnings.

The main recent why I choose Capitacomm is its attractive valuation and reasonable gearing level. It is one of the top quality REITS behind Capitamall. Unfortunately Capitamall is trading at a more expensive valuation as compared to Capitacomm. The latest NAV of Capitacomm is at $3.07 which means the current price is at 33% discount from its NAV.

Capitacomm occupancy rate

Capitacomm historical DPU chart

Capitacomm’s occupancy rate still remains strong from the chart above. There is also no doubt from what I read in Intelligent Investor book by Benjamin Graham that REITS are good inflation protected investments. The evidence is illustrated by the historical Dividend Per Unit (DPU) chart above. The aim of the REIT is to distribute higher DPU year after year. After the most recent acquisition of One George Street, it will add to a higher DPU payout for next year.

In one of my previous articles, I have mentioned that I intend to set up a supplementary portfolio consisting of global stocks. I believe now is a good time to buy into Vanguard Emerging Markets stock. The stock has corrected about 20% from the previous high and at a support level around USD$45. Its trailing twelve month PE is at 13 (source from yahoo) and is considered attractive enough for me.

Vanguard Emerging Markets historical chart

Take note this stock is listed on American Exchange. Even though emerging market is very volatile, it does suit my risk profile. It also gives me exposure to oil and gas related stocks around the globe with companies like Gazprom and Petroleo. I believe in the long term economic prospect of countries like Latin Americas, China and Russia. That is the main reason why I choose this stock as part of my supplementary portfolio and I decided to go the index way.

I received total cash dividends of $56.16 for the month of July.

NoStockModeUnrealised P/L
1ALLCOREIT CASH-23.15%
2ARA CASH-33.13%
3CAPITACOMMCASH-4.38%
4CHINA HONGXINGCASH-17.95%
5CHINA MILKCASH-7.26%
6COURAGE MAR CASH-17.91%
7COSCOCORPCASH-9.33%
8FIBRECHEM CASH-32.80%
9FSL TRUST CASH0.92%
10GEN INT CASH-13.61%
11JAYA HLDG CASH-24.89%
12KS ENERGYCASH1.27%
13MACQ INT INFRA CASH-30.72%
14ROTARY ENGRG LTD CASH-51.22%
15TAI SIN CASH-33.54%
16SWIBERCASH-26.28%
17UOB-KAY HIAN CASH-28.18%
18VICOM CASH3.66%
19VANGUARD EMER MRKTSCASH-2.04%
20BH GLOBALCPF-31.20%
21COSCOCORPCPF4.15%
22SIAENGGCPF-34.50%

15 comments:

Anonymous said...

Mike, sth wrong with ur CBox? I got the following message.

Error
Private Cbox. Check code and reinstall.

Mike Dirnt said...

Thanks for highlighting. I do encounter that last time. Pls check if it occur again

Anonymous said...

Still persists.

ku said...

Mike, I am using my home PC now (OS is WinXP SP3) and running both IE7.0 and Firefox 3 hit the same error msg on ur webpage. Using my office PC (with Vista) doesn't have any problem, though.

Mike Dirnt said...

Guys thanks for the feedback. im contacting cbox support now.

cae said...

Hi Mike,

I'm also interested in the index funds offered by Vanguard. I'm been reading up and it seem that index funds are the way to go.

Can you kindly blog about your process of purchasing? Anything to look out for? Eg, as it being a US fund, is there any additional charges by the brokers house?

Deeply appreciate it.

Mike Dirnt said...

Hi Cae,

i see if i got the time to write a long article. in the mean time, he are my short writings

1) you need to understand estate tax duty when investing in US
2) there is a 30% tax on dividends in US as well
3) you can consider low cost broker like optionsxpress or saxo capital. the disadvantage is the funding process. very troublesome need to send cheque and wait to deposit into account, etc
4) if you dont mind paying sligthly more and easier method of funding, just consider DBS Vickers. No other charges when buying except broker fees min of 29USD

for those points above, you may want to visit sgfunds forum? there are great deal of discussions about US ETF there

hope it helps

Mike Dirnt said...

i have done a few corrections on my portfolio.

1) included capitacomm which was purchased in July

2) corrected portfolio value to 21.69%. previously was 24.51%

cae said...

Mike,

Thanks for the prompt reply. :)

Your blog seem to be covering a lot of stuff that I have a keen interest. Will be looking forward to your article on purchasing of US stocks

Mike Dirnt said...

Thanks Cae,

my blog basically shares anything that can be monetarily rewarding. not only about stocks and shares.

join the discussion in the chat box to learn and share!

Ku said...

Mike, I thot u said u will buy Capcomm only at below $1.80? :P Welcome to the Capcomm club, my ave price was $2.4, lol

Mike Dirnt said...

lol ku,

i bought after the result announcement. wanted to earn the dividends as well. seems i got cheated. the price drop lower after that. its ok. im willing to hold. :)

ku said...

My latest top-up on Capcom was $1.87, and the price has strong support around $1.80++. Short-term players can trade can in the $1.85-$1.95 region, IMO. :)

Mike Dirnt said...

becareful Ku dont get caught in the market swing. but capitacomm is a good stock. so even if you get caught, you are "forced" to hold :)

Ku said...

Mike, thanks for your kind advice, yeah, any stock can fall in a bearish market, we should take heed :)