Saturday 1 April 2017

March 17 Portfolio Update

It has been almost 2 months since my last portfolio transaction updates. So here goes:

1. World Precision Machinery

The "No dividend" announcement was bit of a shocker to me. My main thesis to invest in World Precision was due to its consistent declaration of dividends. Therefore, i took a chance to divest it when someone was offering to buy it at 0.235 after the full year results. This allowed me to clock in a 7% return.

2. First Ship Lease Trust

This was another company hit by negative news via comments made by its auditors. However, when I re-invested into FSL trust; I was already aware of the fact that its bank loan will be classified to "Current Liabilities" because it is due in Dec 17, resulting in current liabilities exceeding current assets. So when Moore Stephens LLP, its auditor, highlighted of its going concerns due to the high current liabilities; I wasn't surprised. To me, given the company's prompt repayment, and that its 22 ships will serve as collateral and has sufficient market value in the tanker markets, I am quite confident a new bank loan will be granted (rolled over)

Capitalizing on the fall in prices due to its auditor's comments, I took the opportunity to add to my initial stake at 0.131. 

3. Silverlake Axis

I also bought 11,000 shares of Silverlake at 0.575 because I still find it undervalued due to its actions of monetizing its china associate's stake and stable core banking system segment.

4. Broadway Industrial

Sold all of my Broadway Industrial holdings as the run up in its price meant an opportunity to deploy cash for other purposes.

5. Hyflux Preference Shares

Sold some of my Hyflux Preference Shares and used the proceeds to purchase FSL. This is due to my belief that FSL trust should achieve a return of at least 10% vis-a-vis Hyflux's estimated returns of 8.5% in the next 1 year and 2 months basis.

Financial Journey

Thanks to my bonus and own saving habit, my portfolio has crossed the $300,000 mark! In my journey thus far, the growth of my portfolio has been largely down to my frugal saving habit. Hopefully as my portfolio grows, the returns it generates will eventually exceed that of my monthly saving contributions.