Tuesday, February 14, 2017

Portfolio Update- Feb 2017

It's been almost 8 months since I last updated my portfolio. My desktop at home was down since mid of last year and I was also pretty busy and stressed with work. Today, I have decided to take a day off to rest and do some blogging.

There has been major changes in my stock holdings as I've initially decided to do some property investments in August of $100k, hence I sold away much of my shares . However, I changed my decision last minute due to some personal reasons. Hence, I am currently holding much cash and looking to reinvest again.

Here are the stocks I've sold.


Singapore Shares



HK Shares


US Shares



Using factor of USD/SGD of 1.37 and HKD /SGD of 0.17654, total shares sold is about $69k. I saved up another $30k over another 3.5 months.

As I continue to save, I bought back Parkway Life Reit in Nov at $2.40 and 1600 shares of Raffles Medical in Dec at $1.385 at 1400 shares at $1.395, because only partial filled at market closing.

I have also added Fraser Logistic & Industrial Trust, with 1000 allotted shares via IPO. I couldn't buy 3000 shares at once, because at that time I was trying very hard to save up $100k while minimizing the selling of shares.



....and now I am holding much cash..



Sadly after selling the shares, STI traded sideways and subsequently had a good run from 2.8k to 3.1k. I am currently trying to buy back the shares that I've sold, but most of them went up quite abit, especially 800Super, trading at $1.145 (sold at $0.72), Sats at $5.00 (sold at $4.74).



Having the $100k cash, I was abit impatient and hungry for yields. I bought 3000 shares of Starhub at $2.98 for it's 6.7% yield just before result announcement and kept my fingers crossed that the numbers won't turn out so bad. But it turned out quite bad, and management had to cut dividends by 20% to sustain it's cashflow. I sold away at $2.79.

Reason for selling: Dividend yield is only 5.3% at $2.98 ( $0.04*4= $0.16 dividend/year). A 5.3% yield with minimal/declining growth doesn't fit into my investment criteria and I think I can get a better deal by investing in stable Reits with more growth potential such as Parkway Life Reit.

I have also read articles by investment bloggers. Shares they bought recently, e.g Kingsmen Creative, ISO Team, M1. Kingsmen Creatives has a very healthy order book, minimal debt and high free cashflow. However, I don't seem to quite understand their business and the risks involved.

For now, I should be more patient and wait for opportunities. Perhaps the next market correction is just round the corner.


Current Portfolio

 Individual Acc Portfolio (retirement fund)


 Current Acc2 shares:





Phillip Share Builder

On Jan, I have also decided to take up the Phillip Share Builder plan, $1,000/month to sort of dollar costs averaging in STI ETF $600 and ST Eng $400.

For $600 and above, I would recommend Phillip Share Builder as compared to OCBC BCIP and POSB Invest Saver as the costs is lower. What I like most about share builder is it allows dividend reinvestment and the uninvested portion would be rolled over to the next month's investment.



Here's how ledger balance is being derived.


Cash Ledger Balance = [ A/B - A/B (round down) ]* B

On 2nd Feb, STI went Ex-Dividend (XD) of $0.053/unit. Hence dividend of 193*0.053= $10.229 (before dividend charge of 1%) and cash ledger balance of $2.74 would be reinvested next month.

Amount alloted for STI ETF is $593.59 instead of $600 is due to the fees of $6.41. ($6+ 7% GST).
If you chose more than 2 stocks, you can decide where the costs will be deducted from upon enrollment.

Hopefully the next time I blog, some of the shares under my watchlist would have hit my buy price.

Just a question for readers: I bought SATS at and average price of  $2.93 to $3.10 and 800Super at $0.475. If you were in my shoes, would you consider buying back at higher prices?

Monday, June 13, 2016

Direct Interest & Deemed Interests

Hi all,

Today I ll be writing about disclosure of Interests/ Change in Interest of Substantial Shareholder(s) or Director/Chief Executive Officer.

You will see this very often when you scroll through the Company Announcement under the Company Information Tab. When I just started investing, I remembered scrolling down to check the earnings report and end up seeing many of these.

Well the purpose of this is that Under the Securities and Futures Act as well as Companies Act, Part VII, MAS requires CEO/Directors of the company, substantial shareholders, trustee manager of listed REIT or BT to actually disclose when there's a change in their shareholdings.

Source: http://www.mas.gov.sg/~/media/Part_VII_FAQ_revised_23_Nov_2012

In the form,

There's a column for direct interest and deemed interest.


 
Definition of deemed interest under Companies Act   
I'll label them into 4 points.

1. Control of board / controlling interest - where a body corporate has, or is deemed to have, an interest in a share and the body corporate is, or its directors are, accustomed or under an obligation whether formal or informal to act in accordance with the directions, instructions or wishes of a person; or a person has a controlling interest in the body corporate, that per son shall be deemed to have an interest in that share;

2. Control / exercise of ≥ 20% or more through itself, its associates or together with associates – where a body corporate has, or is deemed to have, an interest in a share and a person is, the associates of a person are, or a person and his associates are, entitled to exercise or control the exercise of not less than 20% of the votes attached to the voting shares in the body corporate, then that person shall be deemed to have an interest in that share;

3. Interest arising from right to acquire shares/units , shares/units purchase agreement, options to acquire shares/units etc.

4. Where one is entitled (other than by being a proxy or representative to vote at a meeting) to exercise or control the exercise of a right attached to the share/units

Difference between direct and deemed interest

Let's illustrate this difference with an example.


Direct Interest
In 800Super's example, Lee Koh Yong owns 2.8% of the shares in his own name, that's direct interest.


Deemed Interest
Deemed interest is one which are not held in the name of the director but the law regards as being attributable to him. According to Companies Act, Mr. Lee Koh Yong, Executive Chairman of 800Super has control of board (pt 1) and as he owns 28% (≥20%) of the company which in turn own shares of 800Super (pt 2) so he has deemed interest in 800Super shares in which Yong Seong Investments has an interest.

A director/CEO can also deemed to have interest in the shares if his spouse or child (below 21 years of age) owns the shares.

For point 3 and 4, you will see it in companies which commonly issue options/warrants to management which gives them the right to exercise the options at a certain price. Once CEO/Directors are awarded options/warrants, they have to declare as they have deemed interest in the shares of the company.


Effective ownership interest vs deemed interest




There's actually a difference in the two terms used above. In the case of 800Super, Mr. Lee's effective ownership interest is actually 2.8% + 28%* 66%= 21.28%. Deemed interest=66%. Technically speaking, Mr. Lee should have 21.28% of voting rights, because he only owns 28% (not 100%) of Yong Seong Investments Pte. Ltd.

Let's work on 2 more examples:

 Global Logistic Properties



In the case of GLP, PNC Financial Services Group, being a substantial shareholder of GLP ( ≥5% effective ownership in of GLP) needs to notify company of its shareholding movement.

Since it owns ≥20% of Blackrock Inc which in turn own shares of GLP, PNC Financial Services Group has deemed interest in shares of GLP.





Hotel Properties


There was a change in the Managing Director Ong Beng Seng's deemed interest as his wife added more shares in her own name and through her holding company.

This transaction also shows that MD deemed to have interest  in his spouse in shares own by her spouse in her own name or shares which she has deemed interest in.

So here's how it's derived:

Before Transaction


After Transaction




If you have any questions, feel free to ask me. I am also learning at the same time :)

Last Friday, I received a call from OCBC securities that I was not allotted any private placement shares for Fraser Logistics & Industrial Trust IPO. (I've updated in FB last week). So from the email from OCBC it states that the public offer starts on 10 to 16th June. Most likely I ll be applying some. Keeping my fingers crossed.


Source:
http://www.imas.org.sg/uploads/media/2012/10/29/348_111130_Susbstantial_Shareholdings_Disclosure_Obligations.pdf
http://infopub.sgx.com/FileOpen/_BlackRock_Form_3_091015_final.ashx?App=Announcement&FileID=373318
http://infopub.sgx.com/FileOpen/_FORM1_OBS_FINAL.ashx?App=Announcement&FileID=286882


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Friday, May 27, 2016

Current Portfolio

Hi all,

It's been awhile since I update my blog. I did some adjustments in my portfolio and wish to exclude the stocks which I decided not to include in my retirement fund & dividend calculation purposes (see list below). Hence, to make things more organized, I have actually created another CDP joint account (since 1 person can only have one CDP acc)- let's call this Acc2, to store the excluded shares and recently also added more shares to that portfolio. I will slowly be transferring the excluded over to Acc2. Moving forward, I will not be adding anymore shares into Acc2 and won't be updating it anymore.

The way I ll be transferring is to use my cash allocated for retirement fund to buy shares through standard chartered and transfer it to Acc2.
I wont actually be transferring shares to Acc2 from my individual cdp acc; I'll buy shares using Stan Chart and transfer it to Acc2 e.g for DBS, I bought 300 shares using stan chart. Once I have accumulated 400 shares, I'll transfer to Joint Acc CDP.

So moving forward, I ll slowly be buying those shares shown below through stan chart and transfer it to Acc2.

Stocks excluded for retirement fund (excluded shares)
1. 1000 shares of ST Eng (transferred 1000 shares)
2. 400 shares of DBS (not yet transferred)
3. 1000 shares of Keppel Corp (not yet transferred)
4. 1000 shares of SGX (not yet transferred)
5. 5000 shares of 800Super (not yet transferred)



Current Acc2 shares:


Since SGX implemented the 100 shares/lot, I have been using more of Standard Chartered trading platform by buying hundred to few hundred shares at one time till I hit the desired no of shares and head over to stan chart to fill in the form to transfer to CDP and I plan to do so in future.


 Standard Chartered Portfolio: (part of retirement fund)



Retirement Portfolio

I have divested SembCorp last year at a price of $3.70 which I regretted not selling when it hits about $4.84 where B and ASSI sold. I bought at $4.18 which makes it a loss of $500 (inc brokerage fees ex. div). Personally, I believe oil prices will eventually recover one day but it' ll be quite sometime am. So the current oil&gas share which I own is only Keppel Corp.

Other than buying shares through Stan Chart, I have also been buying Nikko STI ETF shares through POSB InvestSaver which allows me to do dollar costs averaging. I am funding it through the angpow money I've collected since young :) I bought at 2014 so the returns hasn't been fantastic since STI is still at 2.7k levels; but long term should be good.

That's for today. I ll also post my entry price for my individual acc soon, write up about SLA and some stocks under my watchlist.

(Btw, I am currently just showing my portfolio. Will write more on the transactions soon i.e why did I buy/sell those shares )

Individual Acc Portfolio (retirement fund)