I bought SGX shares through Phillip Share Builders Plan (PSBP) while suspending the Capitaland purchase. I was a bit disappointed because my first participation in a rights exercise was a failure. I did not manage to achieve my targeted number of Capitaland shares. As such I will continue to DCA through PSBP for the month of April. However I have used up the cash returned from the rights exercise to buy Capitaland shares through the unit share market instead.
There were 3 transactions for the month of March 2009.
Bought Capitaland, new average price at $2.384
Bought SGX (PSBP), new average price at $5.103
Bought UOB Kay Hian, new average price at $1.874
UOB Kay Hian is one of the pioneer stocks in my portfolio. I bought this company at a high price during the peak of the stock market bull run. Since then I monitored its share price falling and I am glad to have added some shares at a reasonably attractive price of around $0.89. The purchase brought down my average buy price to $1.874 per share. At this price, my dividend yield is about 4%.
As usual in my monthly portfolio update, I like to post a little bit of information on the companies that I bought. UOB Kay Hian is a broking and corporate finance services company based in Singapore. Their principal activities are stocks, futures and investment trading, margin financing, investment holding, and provision of nominee and research services. The company has quite a fair share of revenue coming from Singapore and Hong Kong regions.
There is no doubt that lower investment and trading activities will impact UOB Kay Hian profitability but looking at its income statement is only one side of the story. Below I present a highlight of the company financial statements since 2004.
If you were to compare the year 2007 and 2008 from the balance sheet, UOB Kay Hian has significantly lowered its debt level coupled with a large increase in cash holdings. The company currently has a negative net gearing which means they are in a net cash position of $0.559 per share. Historically they spent small amount of cash for capital expenditures so I believe the company can still continue to generate free cash over the coming quarters.
Investment and trading activities have always been a risky business especially at times like now when high chances of credit defaults may occur. However if you look at the receivables per revenue ratio, the company does not show sign of that risk. The company still maintains a decent amount of receivables from clients. Assuming my calculation of its latest EBITDA is right, the Total Enterprise Value (TEV) over EBITDA ratio is on a low side of 1.726. Overall I would say it is a value buy for me. Thus I see it is a good opportunity for me to accumulate more shares from the company.
I received total dividends of $100.37 for the month of March 2009. I am looking forward to receive a bigger portion of dividends income in the coming month of May.
| No | Stock | Mode | Unrealised P/L (SGD) |
| 1 | ARA | CASH | -56.79% |
| 2 | CAPITACOMM | CASH | -33.43% |
| 3 | CAPITALAND (PSBP) | CASH | -2.27% |
| 4 | CHINA HONGXING | CASH | -83.76% |
| 5 | CHINA MILK | CASH | -57.66% |
| 6 | COSCOCORP | CASH | -75.70% |
| 7 | COURAGE MAR | CASH | -58.33% |
| 8 | CSE GLOBAL | CASH | -12.60% |
| 9 | FIBRECHEM | CASH | -88.71% |
| 10 | FRASERSCOMM | CASH | -86.72% |
| 11 | FSL TRUST | CASH | -68.72% |
| 12 | GEN INT | CASH | -19.72% |
| 13 | JAYA HLDG | CASH | -79.27% |
| 14 | KEPPELCORP | CASH | 29.49% |
| 15 | KS ENERGY | CASH | -51.30% |
| 16 | MACQ INT INFRA | CASH | -68.78% |
| 17 | PAC ANDES | CASH | -22.71% |
| 18 | PLIFE REIT | CASH | -2.69% |
| 19 | RAFFLES EDUCATION | CASH | -55.04% |
| 20 | ROTARY ENGRG LTD | CASH | -68.69% |
| 21 | SATS | CASH | -28.32% |
| 22 | SGX (PSBP) | CASH | -0.06% |
| 23 | ST ENGG | CASH | 7.99% |
| 24 | SWIBER | CASH | -82.25% |
| 25 | TAI SIN | CASH | -55.92% |
| 26 | TAT HONG | CASH | -20.92% |
| 27 | UOB-KAY HIAN | CASH | -41.30% |
| 28 | VICOM | CASH | -13.53% |
| 29 | VANGUARD EMER MRKTS | CASH | -42.57% |
| 30 | iSHARES MSCI EAFE | CASH | -14.57% |
| 31 | BH GLOBAL | CPF | -54.55% |
| 32 | COSCOCORP | CPF | -72.09% |
| 33 | SIAENGG | CPF | -60.61% |
6 comments:
This is a global financial crisis, I can't understand why????? You didn't hold any!!!!! When the market turn to positive, Finance Side will come first...
Lastly i'm appreciate that you are honest and willing to share your portfolio.
sorry i beg your pardon. didnt hold any what?
i believe you meant banks? nope i dont like to buy banks because i dont really understand how to value them. instead i got stocks like SGX and UOB Kay Hian. They are in financials as well :P
VANGUARD EMER MRKTS
iSHARES MSCI EAFE
how did you buy this 2? Off the us stock market or an SG equivalent?
hey squared2,
they are bought from the US market. i wrote something about US ETF. read it if you are interested
http://sti-stocksinfo.blogspot.com/2008/06/us-exchange-traded-fund-etf.html
if you need any help, just drop me a message in the CBOX above
In that case isn't your risk exposure 2 fold?
i.e. the market themselves and exposure to US currency exchange?
ETF and index seems a really good neutral/sedentary style of investing but the choice in singapore is limited :(
heard of the rafi index? Any comments?
http://www.researchaffiliates.com/rafi/rafi.htm
the currency risk is present not only to US ETF. there are also currency risks even if you invest in SGX SGD denominated stocks. most of the local companies have sources of income from foreign currencies too. investing in a broad region ETF is more diversified in a sense its a collection of stocks from multiple regions. so the currency fluctuations may cancel one another
i have not heard of rafi. i prefer to stick to the recommended and common ones like vanguard and ishares
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