My stocks portfolio - May 2010

Based on total invested capital, my stocks portfolio was down by 10.80% at the end of May 2010. Total portfolio loss adjusted to 3.37% after taking all dividends into account. My holding period return was -7.12% for the month of May 2010 and overall holding period return translates to -1.41% in annualized return since beginning of the year.

There were 5 transactions for the month of May 2010.
Sold Frasers Commercial REIT (FCOT) at -39.7% loss (adjusted for dividends)
Sold First Ship Lease (FSL) at -26.6% loss (adjusted for dividends)
Bought Asia Travel, average price at $0.464
Bought Tiong Seng, average price at $0.260
Bought Design Studio, new average price at $0.616

I sold two of my “F” stocks which were FCOT and FSL. Prior to selling FCOT, the stock was trading at a current dividend yield of 11%. I told myself that at such yield, I won’t be able to recoup my losses with the stock in the next few years. Furthermore on a risk adjusted basis, I don’t think FCOT can trade at a much higher price unless the dividend yield increases significantly in the next few quarters. With limited upside potential and possibility of down side risks in the stock, I decided to sell FCOT.

The other “F” stock which I sold was FSL. On the night before the announcement of vessels cancellation, I actually queued to sell FSL at 60 cents. Then there came the bad news which caused FSL to crash to 56 cents the moment I logged into my trading account. I did not wait any further and decided to sell straight away. Actually that wasn’t the main reason of me divesting FSL shares. The main reason was also on its low dividend yield on a risk adjusted basis. Without adding more new vessels, there is no way FSL can improve its dividend pay out. And going forward, I foresee FSL to raise equity to strengthen its balance sheet. Take note that one of the managements goals is to maintain FSL at a 1:1 (debt:equity) capital structure. At this moment, FSL is already highly leveraged. Also coupled with the twin depreciations in equity value and USD currency, I hope I have made the right decision to divest FSL shares away.

I used up the free cash from the sale of FCOT and FSL to buy shares in Asia Travel and Tiong Seng. The former stock will give me exposure to the tourism industry which was one of the few sectors that was lacking in my portfolio. Asia Travel has fallen by more than 50% from its peak of 84 cents thus I thought it was a good buying opportunity since I have monitored this stock for some time.

The other sector that was lacking in my portfolio was the construction sector. I think Tiong Seng fits to fill up the missing stock in that sector. With its huge order book of close to a billion dollars, I am assured that Tiong Seng construction business will be kept busy for the next few years.

I have also taken advantage from the recent sell down to buy some more shares of Design Studio. The company still has a decent amount of outstanding order book which can cushion their bottom line for the next one or two years. And any new projects that are secured will definitely be a catalyst to its share price movement.

I received total dividends of $1,483.10 for the month of May 2010.

Month	Holding Period Return	Annualized Return
Jan-10	-1.75%	-1.41%
Feb-10	1.36%
Mar-10	2.98%
Apr-10	4.36%
May-10	-7.12%

Stock	Mode	Unrealised P/L (SGD)	Stock	Mode	Unrealised P/L (SGD)
ARA	CASH	16.67%	MACQ INT INFRA	CASH	-51.02%
ARMSTRONG	CASH	196.00%	NEPTUNE ORIENT LINES	CASH	46.55%
ASIATRAVEL	CASH	-20.26%	MERMAID	CASH	-32.72%
CAPITACOMM	CASH	29.11%	NOBLE GROUP	CASH	12.42%
CAPITALAND	CASH	43.83%	PLIFE REIT	CASH	71.57%
CAPITAMALLS ASIA	CASH	-0.94%	RAFFLES EDUCATION	CASH	-59.71%
CHINA MILK	CASH	-67.74%	ROTARY ENGRG	CASH	-8.55%
CITYSPRING	CASH	20.45%	SATS	CASH	57.58%
COURAGE MAR	CASH	-26.59%	SGX	CASH	15.42%
CSE GLOBAL	CASH	119.79%	STARHUB	CASH	1.33%
DESIGN STUDIO	CASH	-26.95%	ST ENGG	CASH	36.96%
FIBRECHEM	CASH	-88.71%	TAI SIN	CASH	-30.60%
FORTUNE REIT	CASH	37.71%	TAT HONG	CASH	14.80%
FRASERSCT	CAS	19.89%	TIONG SENG	CASH	-5.77%
GENTING SP	CASH	49.51%	UOB-KAY HIAN	CASH	-21.56%
HEALTHWAY	CASH	27.12%	VICOM	CASH	43.57%
HG METAL	CASH	-36.31%	VANGUARD EMER MRKTS	CASH	-14.23%
JAYA HLDG	CASH	-54.85%	iSHARES MSCI EAFE	CASH	1.14%
KEPLAND	CASH	174.45%	BH GLOBAL	CPF	-26.29%
KEPPELCORP	CASH	127.97%	COSCOCORP	CPF	-53.03%
KS ENERGY	CASH	-27.27%	SIAENGG	CPF	-21.44%