Friday 16 April 2021

Portfolio Addition: Bought Boustead Singapore and Borr Drilling

 Just a simple post, recent additions to my Portfoilo: Boustead Singapore and Borr Drilling in NYSE

Boustead Singapore was an investment because of their strong operating cashflow as well as news of gains in disposal of investment properties in Boustead subsidiary. I am expecting a growth in dividends that will justify a permanent 5-6% dividend yield at current prices. 

The company is the sole distributor of the ESRI software in Singapore which is the main geo-spatial technology everyone uses here. Essentially Boustead holds a monopoly in the local geo-spatial software system. The company currently distributes 3 cents dividends at a payout ratio of about 40%. With higher earnings as a future REIT manager, increased usage of geo spatial software and water usage in singapore, it is possible boustead earnings will increase and along with it higher dividends.

The next purchase is Borr Drilling. They are listed in NYSE and own a fleet of new oil rigs. However, only 50% of their current oil rig fleet have contracts while the rest are idle laying in yards across the world including Singapore. My prediction is that with oil demand increasing, the utilisation of Borr's rig will increase and losses will turn to profits.

That's all I have, simple theory to my investing thesis!