I still continue to Dollar Cost Average (DCA) my Capitaland and SGX shares purchases through Phillip Share Builders Plan (PSBP). I am glad that I have made such arrangements. My unit price for SGX is going down as its share price goes lower. That means I am buying more shares as it gets cheaper.
As for Capitaland, I am looking forward to subscribe to my rights entitlement and apply for excess shares. If my strategy works out as planned, I can bring down my average price for Capitaland to about $1.70. I will comment further in my next portfolio update.
There were 3 transactions for the month of February 2009.
Bought Capitaland (PSBP), new average price at $2.782
Bought SGX (PSBP), new average price at $5.132
Bought CSE Global, price at $0.389
CSE Global is one of the few penny stocks that are on my watch list. I admit the buy price is not that attractive enough because I bought it before the results announcement. My position with CSE Global is still small so I am prepared to buy some more shares if the share price falls substantially further. Some people may comment that I will incur higher brokerage fees in percentage terms if I buy in small amount. That is not really true. If you have been following my blog, you will know that I have managed to redeem most of my brokerage fees for the past nearly one year!
CSE Global provides a variety of turnkey solutions to the industries with a wide range of core businesses from control, telecommunication, electrical, healthcare to environmental segments. Their customers profile is further diversified almost equally from every region around the globe. I would consider CSE Global a truly diversified company in the technological industry. And this is one of the sectors that is lacking in my portfolio. Therefore I see CSE Global as a suitable candidate to be added into my portfolio.
Below I present a highlight of the company financial statements since 2003.
Over the years, revenues are increasing steadily with improving margins. However earnings growth for 2008 slowed down in line with deteriorating global economy. On a positive note, management is confident that they will remain profitable in 2009. I believe they can achieve it as outstanding order book was S$269.5M at end of 2008. The outstanding order book seems to be on the decline due to a weaker British Pound currency. Their priority now is to capture more healthcare and infrastructure business opportunities which could benefit from government spending around the world.
From the balance sheet, the company is quite leveraged with a net gearing of 0.797 but its short term liquidity is still sound at the moment. From the receivables per revenue ratio, management is on the right track in collecting payments from debtors. Throughout the years, CSE Global has low capital expenditures which can translate more cash from operation into higher free cash flow.
Last but not least, CSE is a good dividend play stock. Based on my buy price, dividend yield is around 10%. Discount that yield by 50%, I am still contented with a 5% yield and I am also looking forward for capital appreciation. Overall based on the Total Enterprise Value (TEV) over EBITDA ratio, I am satisfied to buy at a ratio of below four.
I received total dividends of $341.46 for the month of February 2009. The amount does not include dividend from SGX which I will choose to reinvest through PSBP. The good thing is that there is no cost for reinvestment.
| No | Stock | Mode | Unrealised P/L (SGD) |
| 1 | ARA | CASH | -56.28% |
| 2 | CAPITACOMM | CASH | -42.89% |
| 3 | CAPITALAND (PSBP) | CASH | -28.83% |
| 4 | CHINA HONGXING | CASH | -82.05% |
| 5 | CHINA MILK | CASH | -54.97% |
| 6 | COSCOCORP | CASH | -78.67% |
| 7 | COURAGE MAR | CASH | -58.33% |
| 8 | CSE GLOBAL | CASH | -12.60% |
| 9 | FIBRECHEM | CASH | -88.71% |
| 10 | FRASERSCOMM | CASH | -84.82% |
| 11 | FSL TRUST | CASH | -71.23% |
| 12 | GEN INT | CASH | -35.78% |
| 13 | JAYA HLDG | CASH | -81.50% |
| 14 | KEPPELCORP | CASH | 12.95% |
| 15 | KS ENERGY | CASH | -53.25% |
| 16 | MACQ INT INFRA | CASH | -67.71% |
| 17 | PAC ANDES | CASH | -15.46% |
| 18 | PLIFE REIT | CASH | -1.41% |
| 19 | RAFFLES EDUCATION | CASH | -50.24% |
| 20 | ROTARY ENGRG LTD | CASH | -75.15% |
| 21 | SATS | CASH | -28.32% |
| 22 | SGX (PSBP) | CASH | -11.54% |
| 23 | ST ENGG | CASH | 1.40% |
| 24 | SWIBER | CASH | -78.23% |
| 25 | TAI SIN | CASH | -58.68% |
| 26 | TAT HONG | CASH | -28.57% |
| 27 | UOB-KAY HIAN | CASH | -62.18% |
| 28 | VICOM | CASH | -14.08% |
| 29 | VANGUARD EMER MRKTS | CASH | -48.03% |
| 30 | iSHARES MSCI EAFE | CASH | -19.84% |
| 31 | BH GLOBAL | CPF | -57.00% |
| 32 | COSCOCORP | CPF | -75.49% |
| 33 | SIAENGG | CPF | -61.04% |
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