Tuesday, December 1, 2009

My stocks portfolio - Nov 2009

Based on total invested capital, my stocks portfolio was down by 14.36% at the end of November 2009. Total portfolio loss adjusted to 8.58% after taking dividends into account.

There were 5 transactions for the month of November 2009.
Exercised Mermaid Maritime RIGHTS, average price at $0.706
Bought SGX (PSBP), new average price at $6.368
Bought Courage Marine, new average price at $0.252
Bought Healthway Medical, average price at $0.133
Bought CapitaMalls Asia (IPO), average price at $2.120

November was another successful month for me in receiving a good amount of excess shares from Mermaid Maritime RIGHTS exercise and also the allocation of CapitaMalls Asia shares from its IPO exercise. In that month, I completed a full year of dollar cost averaging for SGX. I have made monthly purchases of SGX shares diligently through PSBP since November 2008. My latest average price is at $6.368 which includes a reduction in cost price by reinvesting dividends received so far. I am looking forward to select another bluechip stock to be purchased by dollar cost averaging. I will probably select Starhub due to its unpredictable future earnings after it lost the rights of broadcasting EPL. Nevertheless Starhub is offering an attractive dividend yield.

Mermaid Maritime is a fast growing drilling and engineering servicing company for the oil and gas industry in South East Asia. It has served and currently serving large oil and gas related clients like Shell, BP, Chevron, Petronas and many others. With decent double digits net profit margin and return on shareholders equity over the years and coupled with its low debt profile, I believe this company has a big growth opportunity over the longer period. Considering that its IPO price was $1.27 (adjusted for RIGHTS), I think I have gotten Mermaid shares at a good discount in psychological terms and I plan to top up if it falls 50% lower.

Previously I was considering CapitaMall Reit but missed that opportunity. Now I think CapitaMalls Asia is a better deal as I get to gain exposure to retail properties not only in Singapore but also to properties around Asia. Many investors claimed that the offer price of $2.12 is a bit too expensive which is 1.55x of book value. According to an article from FinanceAsia, a similar comparison to CapitaMalls Asia is Hang Lung Properties which was trading at 1.8x of book value on the Hong Kong stock exchange.

Valuation aside, I give some reasons why I think it is a good long term stock to hold. First of all, I predict this stock is likely to be constituted into the ST Index during the next FTSE meeting on Februrary 2010. Therefore it shall gain buying interests from institutional investors and fund managers in future. Secondly Capitaland is an experienced and established property company in the region. Since CapitaMalls Asia has a big growth in the pipeline for China, an investor who wants to ride the rapid growth of the Chinese economy can use CapitaMalls Asia as a proxy with greater confidence. In other words, this proxy is less risky than buying some doubtful China S-Shares listed on SGX. Lastly Capitaland shareholders should not be too worried if the IPO is overpriced as the proceeds from the IPO will indirectly benefit the parent company that is Capitaland and its shareholders. Again I am looking forward to top up CapitaMalls Asia if its share price falls much lower.

I made a third purchase of Courage Marine shares thus bringing down my average price to $0.252. If you look at the Baltic Dry Index, it is quite obvious that the dry bulk shipping industry has bottomed out and resuming its long term uptrend climb. My shares in the company have not reached a critical level yet so I am willing to average down even further.

In line with Singapore ambition to become a major Healthcare Services Hub in Asia, I have decided to pick another medical stock into my portfolio. I missed the opportunity to grab some Raffles Medical and Parkway Holdings shares cheaply, so I try to pick another smaller company that has a potential to be big in the future. Healthway Medical has already established itself as one of the largest provider of private medical services with clinics and centres around Singapore. With the recent opening of multiple new clinics in Novena Medical Centre and in hospitals like Gleneagles and Mount Alvernia, I am looking forward to a strong and positive growth in future earnings of this company. You can read those announcements from the links below:

Four new NeuGLOW centres
Opening of Thomson Child Development Centre
Opening of Nobel Specialist Dental Centre
Nobel new Heart Centre
Launch of Nobel Surgery Centre
Two new psychological wellness clinics

I received total dividends of $205.77 for the month of November 2009.

StockModeUnrealised P/L (SGD)StockModeUnrealised P/L (SGD)
ARACASH-11.01%KS ENERGYCASH-26.62%
ARMSTRONG CASH92.00%MACQ INT INFRA CASH-53.18%
CAPITACOMMCASH30.24%NEPTUNE ORIENT LINESCASH14.65%
CAPITALANDCASH61.91%NOBLE GROUPCASH24.60%
CAPITAMALLS ASIACASH8.02%PLIFE REIT CASH54.93%
CHINA MILKCASH-63.04%RAFFLES EDUCATIONCASH-48.11%
CITYSPRINGCASH15.38%ROTARY ENGRG LTDCASH1.39%
COURAGE MAR CASH-30.56%SATSCASH51.07%
CSE GLOBALCASH95.37%SGXCASH23.43%
FIBRECHEM CASH-88.71%ST ENGGCASH33.01%
FORTUNE REITCASH9.37%TAI SIN CASH-40.77%
FRASERSCOMMCASH-52.96%TAT HONG CASH21.17%
FRASERSCTCASH15.24%UOB-KAY HIAN CASH-23.69%
FSL TRUSTCASH-50.79%VICOM CASH30.27%
GENTING SP CASH50.92%VANGUARD EMER MRKTSCASH-10.80%
HEALTHWAYCASH-6.02%iSHARES MSCI EAFECASH14.30%
HG METALCASH-20.38%BH GLOBALCPF-26.29%
JAYA HLDG CASH-67.06%COSCOCORPCPF-63.58%
KEPLANDCASH146.85%SIAENGGCPF-38.71%
KEPPELCORPCASH109.36%

5 comments:

AK71 said...

I am vested in Healthway Medical too. I think it's an undervalued stock in the medical services sector here.

I know that the management has proven themselves so far to be astute and aggressive. The business is a defensive one with stable and growing demand. The management is not resting on its laurels and have grown the business rapidly.

Mike Dirnt said...

This stock has the potential to be upgraded to Mainboard from catalist. It has met all the requirements. Its just a matter of time before its upgraded :P

AK71 said...

For sure. Meanwhile, it has a breakout today. If breakout is confirmed next week, a retest of 14.5c is at hand. :)

AK71 said...

14.5c taken out with ease. Next targets are 17c and 19.5c. :)

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