My stocks portfolio - Aug 2010

Based on total invested capital, my stocks portfolio was down by 4.65% at the end of August 2010. Total portfolio gain adjusted to 3.39% after taking all dividends into account. My holding period return was -1.38% for the month of August 2010. Since the beginning of the year, my overall holding period returns translate to 10.61% in annualized return.

There were 3 transactions for the month of August 2010.
Sold Design Studio at 5.5% gain (exclude dividends)
Sold KS Energy at 35.7% loss (exclude dividends)
Bought Pteris Global, average price at $0.219
Bought Hock Lian Seng, average price at $0.298

I have accepted the offer of $0.65 from Depa Interiors to buy over my Design Studio shares. I wish I could hold on to the shares of this undervalued counter but sadly I think Depa Interiors has accumulated more than 90% of the issued shares on the last few days of the offer period. Anyway I am glad that I did some averaging down as the share price tumbled below 50 cents. If I didn’t average down, I would have suffered a slight loss.

I decided to get rid of my loss making investment in KS Energy. I bought this company shares near its peaked price during my early investing days. Nevertheless I managed to average down a little bit when the stock price bottomed. Like what the management has iterated, the company is currently plagued with major restructuring exercises, high debts which impacted the company bottomline and assets which are not under any charter. My investment loss in the company is 32.8% if I were to include dividends collected.

I bought Pteris Global with part of the cash raised from the sale of Design Studio and KS Energy shares. They are one of the top integrated solution providers of airport logistics systems. Behind the efficient and success stories of Singapore Airport is Inter Roller (former name of Pteris Global), which had designed systems from baggage handling to in-flight catering for all of our airport terminals. I believe the company is deeply undervalued based on the expertise and track records that they possess. I think they have the potential to secure more and higher value contracts in the future. Improvements in air tourism data will likely spur the upgrade and construction of new airport terminals around the globe. Here I present the quarterly new orders for the company. It is evident that new orders are coming in and I hope the company can reclaim back its glory moments like prior to financial crisis.

($M)	Revenue	New Orders	Oustanding Orderbook
3Q2009	$18.138	$22.000	$142.000
4Q2009	$24.931	$26.000	$143.000
1Q2010	$21.995	$29.000	$148.000
2Q2010	$29.821	$88.000	$208.000

I remain bullish on the prospect of infrastructure construction in Singapore. Thus the other construction counter that I bought was Hock Lian Seng (HLS). I have chosen this company over OKP, Koh Brothers and Lum Chang because of lower PE multiples, higher order books and its debt free status. Currently HLS is holding on to cash equivalent to 29 cents. Since HLS is in such a strong financial position and with ample headroom to raise debt, I think they are suitable to win large contracts in excess of $200M. In the recent National Day Rally speech, PM Lee said the government will spend $60B to double our rail network. I am quite confident HLS will garner a slice from these construction initiatives.

I received total dividends of $544.42 on the month of August 2010.

Month	Holding Period Return	Annualized Return
Jan-10	-1.75%	10.61%
Feb-10	1.36%
Mar-10	2.98%
Apr-10	4.36%
May-10	-7.12%
Jun-10	4.40%
Jul-10	4.49%
Aug-10	-1.38%

Stock	Mode	Unrealised P/L (SGD)	Stock	Mode	Unrealised P/L (SGD)
ARA	CASH	40.74%	MACQ INT INFRA	CASH	-45.10%
ARMSTRONG	CASH	256.00%	MERMAID	CASH	-40.51%
ASIATRAVEL	CASH	-1.94%	NOBLE GROUP	CASH	-0.76%
CAPITACOMM	CASH	58.55%	NEPTUNE ORIENT LINES	CASH	45.03%
CAPITALAND	CASH	57.09%	PLIFE REIT	CASH	102.30%
CAPITAMALLS ASIA	CASH	-0.94%	RAFFLES EDUCATION	CASH	-67.03%
CHINA MILK	CASH	-67.74%	ROTARY ENGRG	CASH	-9.54%
CITYSPRING	CASH	20.45%	SATS	CASH	65.28%
COURAGE MAR	CASH	-26.59%	SGX	CASH	18.09%
CSE GLOBAL	CASH	145.50%	ST ENGG	CASH	40.47%
FIBRECHEM	CASH	-88.71%	STARHUB	CASH	14.53%
FORTUNE REIT	CASH	42.67%	TAI SIN	CASH	-32.18%
FRASERSCT	CASH	29.18%	TAT HONG	CASH	16.07%
GENTING SP	CASH	138.36%	TIONG SENG	CASH	-5.77%
HEALTHWAY	CASH	41.03%	UOB-KAY HIAN	CASH	-21.56%
HG METAL	CASH	-36.31%	VICOM	CASH	51.33%
HOCK LIAN SENG	CASH	-2.68%	VANGUARD EMER MRKTS	CASH	-11.47%
JAYA HLDG	CASH	-50.04%	iSHARES MSCI EAFE	CASH	1.02%
K-GREEN	CASH	NA	BH GLOBAL	CPF	-20.15%
KEPLAND	CASH	211.90%	COSCOCORP	CPF	-46.22%
KEPPELCORP	CASH	131.33%	SIAENGG	CPF	-13.02%
LEE METAL	CASH	-3.30%