There were 5 transactions for the month of October 2009.
Sold Cosco Corp at -64.9% loss
Sold Swiber at -57.6% loss
Exercise Fortune Reit RIGHTS, average price at $0.491
Exercise Genting RIGHTS, new average price at $0.709
Bought SGX (PSBP), new average price at $6.349
I decided to dispose away my shares with Cosco and Swiber. These are shares I bought in cash. I am still keeping my Cosco shares that were bought with CPF money though. I foresee that I may not be able to recover my losses in these two stocks anywhere in the near term so I decided to cut loss and also to prevent further losses.
Cosco is suffering from multiple blows in the shipping industry from problems like over supply of ships worldwide, deferments and cancellations of projects to lack of new shipbuilding orders. Swiber on the other hand is also lacking of new contract orders. Furthermore I see Swiber management of not creating enough value to the shareholders. First of all, Swiber is a non dividend paying stock. Secondly if you look at the cash flow over the years, there wasn’t any generation of free cash at all. Swiber has been continuously financing their capital expenditures through internally generated cash flow which I think is acceptable. But on top of that, Swiber issued external financing through debts too which I am getting a little bit uncomfortable. Suffice to say, I bought Swiber at the wrong price and made a mistake of not being cautious enough to look at its cash flow.
It seems that major stock markets are trending sideways and losing momentum to drive higher. After a huge climb from the bottom, I anticipate a minor correction to take place soon. So I plan to redeploy my funds collected from the sale into some small cap stocks.
I participated in two RIGHTS exercises with Genting and Fortune Reit. I did receive a modest amount of excess shares in these two companies so as to make my purchases slightly discounted. Fortune Reit holds a portfolio of retail malls and properties in Hong Kong. Based on my average price, it is trading at 0.3x of book value and offering around 10% FY10 dividend yield as forecasted by a few analysts. After the recent RIGHTS exercise, Fortune Reit will have no refinancing needs until 2013. I think my buy price offers quite a good margin of safety from further downside.
I did not receive any dividends for the month of October 2009.
| Stock | Mode | Unrealised P/L (SGD) | Stock | Mode | Unrealised P/L (SGD) |
| ARA | CASH | -14.61% | MACQ INT INFRA | CASH | -55.87% |
| ARMSTRONG | CASH | 100.00% | NEPTUNE ORIENT LINES | CASH | 20.73% |
| CAPITACOMM | CASH | 21.18% | NOBLE GROUP | CASH | 5.31% |
| CAPITALAND (PSBP) | CASH | 66.33% | PAC ANDESW110722 | CASH | NA |
| CHINA MILK | CASH | -39.52% | PLIFE REIT | CASH | 57.49% |
| CITYSPRING | CASH | 16.40% | RAFFLES EDUCATION | CASH | -38.95% |
| COURAGE MAR | CASH | -40.71% | ROTARY ENGRG LTD | CASH | 4.37% |
| CSE GLOBAL | CASH | 105.66% | SATS | CASH | 46.33% |
| FIBRECHEM | CASH | -88.71% | SGX (PSBP) | CASH | 27.26% |
| FORTUNE REIT | CASH | 13.23% | ST ENGG | CASH | 25.55% |
| FRASERSCOMM | CASH | -49.48% | TAI SIN | CASH | -32.51% |
| FRASERSCT | CASH | 12.45% | TAT HONG | CASH | 32.65% |
| FSL TRUST | CASH | -49.96% | UOB-KAY HIAN | CASH | -22.63% |
| GENTING SP | CASH | 52.33% | VICOM | CASH | 17.52% |
| HG METAL | CASH | -26.75% | VANGUARD EMER MRKTS | CASH | -15.77% |
| JAYA HLDG | CASH | -66.32% | iSHARES MSCI EAFE | CASH | 11.31% |
| KEPLAND | CASH | 123.97% | BH GLOBAL | CPF | -22.60% |
| KEPPELCORP | CASH | 111.68% | COSCOCORP | CPF | -61.54% |
| KS ENERGY | CASH | -26.62% | SIAENGG | CPF | -41.03% |
6 comments:
Looks like you are trading too actively. When price drop by more than 60%, should be in the position of buying rather than selling. You may recall the reasons why you buy it at the first place. Suggest to read cif5000.do-talk.com for more idea. This is my humble comments, hope it is okay to you. I like to read your studies on STI ERP. Thanks:)
if you really follow my blog, you will know that i do buy when prices are cheaper. that means i do average down.
of course i wouldnt buy blindly. whats the point of averaging down, if my fundamental views of the companies are not positive.
i forgot to say something. i could have added more cosco shares with cash. but that will mean cosco will be overweight in my portfolio. i dont want that to happen.
i am left with few options. either i hold my loss making investment in cosco for a very long time (my purchase price is too high) OR i could use the proceeds from the sale into something else that can give me better returns in the nearer term. so i choose the latter option
You have a really informative website. pls continue sharing. ;)
I just feel that anoyone who is willing to show their portfolio return openly is an encouraging act. I proud of you!
Hi,
I am keen to buy Fraserscomm. I realised that you also have that. Is it worthwhile keeping ?
Thank you
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