My portfolio of stocks

This is how my portfolio of stocks is like, or what I try to have:

My investment strategy:
Long term -10yrs at least
Conservative risk appetite
Aim for passive income


1. Blue Chip Stocks
Blue chip stocks are stocks belonging to well-established and finally sound companies that have operated for many years. They are normally the market leaders in their respective industries. For e.g. Starhub/Singtel/SembCorp/Keppel/CapitaLand/UOB

Their earnings are consistent, sustainable and provide stable dividends. Once in awhile, I would just need to take a look at their financial statements to see their earnings and future growth. I wouldn't be too worried about their performance.

2. Trusts and Reits
Reits is a stock that invests in real estate directly and typically offer investors high dividend yields and highly liquid method of investing in real estate. For e.g., AIMS AMP CAPITAL INDUSTRAIL REIT comprises of a portfolio of industrial real estate properties in Singapore.  They have warehousing/logistics/Manufacturing/Business parks. What I like about trusts and reits are the relatively stable stock prices (one that does not fluctuate much) and a consistent dividend payout.

3. Undervalued stocks
I tend to keep some cash at my bank to spot on undervalued stocks and make an immediate 'Buy' when the stock market makes a slight correction. For e.g., there was a very brief period where Capitamall trust was selling at $1.9+ and I quickly made a purchase of it.

Of course, due to market efficiency, there are always reasons that justifies that value but having analyzed their financial reports, I believed that it was a worthy purchase and one that might be undervalued. True enough, it didn't take long before it sets back to $2.++ price, a price that holds it stable for the past year.

Such market corrections are not the norm, and it requires some analysis on each individual stock.

4. Potential high growth stock
I think spotting a good potential high growth stock is one of the most ardent task and requires one to look carefully at the fundamentals, analyze the industry, analyze the current value and then determine whether it is worthy to purchase. Not easy, but I guess the returns are one of the highest. That's where we have Warren Buffet..

So here it is, my portfolio. I think that it is relatively conservative as I just looking at a stable flow of passive income.

Do NOT day-trade:

 In addition, I am not an advocate of Day trading, nor do I encourage anyone to be. The main reason is because only a very small percentage of day traders (perhaps lesser than 10%) can consistently earn from it. Today, you might be able to earn thousands from it but tomorrow you can lose everything. It is really, a form of gambling. Technical analysis, to me, does not make much logical sense.

Fraser Centrepoint Trust Stock Analysis

This is a follow up of the review of FCT's 2Q2015 financial results originally posted here .

1. Operational performance
The remaining renewals in FY2015 are mainly at Northpoint, Causeway Point (CWP) and Yew Tee point. Yew Tee point forms the bulk of the renewals.

I do not have much concerns over CWP. Personally, as someone staying in the North and then having moved to the West recently, CWP has been a very bustling mall since years ago and is always packed with people in the weekends. It is not a surprise because at Woodlands, this is the one and only shopping mall to go. Many republic polytechnic students also go there to shop or dine after their studies. The next nearest is either SunPlaza which is really crap or Lot1. Lot1 isn't that popular compared to CWP too.

As for Yew Tee point, I can relate it as a small Plaza in a suburban area fulfilling a myriad of basic needs for the people living around there. Having been there several times, I do think the shopper traffic there is relatively good.

Fraser Centrepoint has strategically locate their retail malls at the suburban areas and most are doing well, except pehaps for BedokPoint.

2. Gearing ratio
Gearing has reduced from 29.3% to 28.6% and % of borrowings on fixed rates or hedged via interest rate swaps has increased by 12%. This means that their debt and risk management is improving.
Interest rates, however, has increased.

3.Outlook
Some of the challenges include manpower shortage, competition from online sales and slowing retail sales growth. However, rising average household income and population coupled with low unemployment rate, I think one can expect a sustainable performance for FCT.

Fraser Centrepoint Trust 2Q2015 distributable income rose 14%

With the increase in net income of 3% by Capitamall Trust for 1Q2015 (mentioned here), it is not a surprise that Fraser Centrepoint Trust (FCT) results were positive as well ^^

FCT did better as its increase was a whooping 14.4%! Distributable per unit increased by 6.2%, a pretty good figure.

"FCT’s property portfolio comprises the following suburban retail properties in Singapore: Causeway Point, Northpoint, Anchorpoint, YewTee Point, Bedok Point and Changi City Point..The Properties are strategically located in various established residential townships, and have a large and diversified tenant base covering a wide variety of trade sectors. "

And with that, I totally agree.

If you are looking at a good source of passive income, this is a stock to consider :D

CapitaMall Trust Financial Results 1st Qtr 2015 Stock Review

Capitamall Trust has released their 1st Qtr 2015 Financial Results. Trusts and Reits are a good source of dividends as they have rather consistent payouts.  However, their stock prices do not fluctuate much so do not expect much capital gains.

Most buy Trusts and Reits to park money into it and leave it there for a long long time. They then enjoy the dividends payout and return of about 4.7% which is pretty good.

Anyway,a good sign that Capitamall Trust's Net property income has increased by 3% and DPU (Distribution per unit) is 2.68cents per share (annualized as 10.87 cents) which means it has increased.

Their shopping malls such as Plaza Sing, IMM, Junction 8 are always packed with people and have high occupancy rates.  Well I enjoy shopping and I tend to think that Singaporeans will continue to shop during weekends as long as the economy is not facing a drastic recession.  Look, there aren't many places to go in Singapore and with Singapore's very hot climate, I would think that majority of the people prefer air conditioned places like Shopping Malls.

Yes, I think can buy, ideally at $2.21 (today's lowest price).

Keppel Corp Financial Results Stock Review

Finally I had some time to analyze their financial results which were released last week.

A key part of being a sound and informed investor is to really read financial statements properly and 'between the lines'.

It was posted that the net profit increased by 6% compared to the same period in 2014. I find that this figure is not meaningful as they used "profit attribute to shareholders" and not "operating profit. "

This is my analysis:

1. Operating profit dropped YOY
Operating profit dropped year on year. Looking at the red box figures below, the drop is about 4%.

2. Operating Profit dropped QOQ

Operating profit dropped Quarter on Quarter. I thought I saw wrongly when I compared the 4th Qtr of 2014 to the 1st Qtr of 2015.

This is the 4th Qtr 2014 results:

 

Take a look at the 1st Qtr 2015 Results:

 

 

 

 

 

That's like a 57.2% drop!? I am not sure whether this is seasonal so I would not really be overly concerned about this, albeit I would take a more cautious outlook.

3. Order book is disappointing

I get that oil prices have fallen drastically, and the oil and gas sector is not looking good now. But the new contracts secured so far for 2015 hasn't been assuring. It is only $0.5B so far..2015 has another 9 months to go and I don't foresee a miracle happening for new contracts being secured.

 

4. Other sectors not performing as well too

Keppel group comprise of 4 main sectors- Offshore and Marine, Property, Infrastructure and Investments.

 

 

Offshore & Marine: Dropped 17%

Property: Dropped 22%

Infrastructure: Dropped 26%

Investments: Increased by almost 6 times

The only redeeming factor was Investments, which they have attributed it to 'the sale of investments'.

The worst performing segment was Infrastructure which was due to a lower contribution from the power and gas businesses.

5. EPS increased

EPS has increased to 19.8cts, compared to 18.7cts for the same qtr 2014. I would take this with a pinch of salt though.

Conclusion:

It is no wonder that by the time you see this, Keppel Corp stock price has fallen to $9.27 (it was trading at $9.4+ before the announcement of results).

Haizzzz. Don't look promising as their business is highly dependent on oil (Offshore+ Infrastructure).

I shall wait for the 2nd qtr results before purchase. Perhaps I am looking into a $8+ (low) price now before entering. Unless Mr Oil price is up again.

 

StarHub Stock Review

StarHub has reached a new high again.

$4.43!!

For the whole of Year 2014, it has been hovering at $4.10+, reaching a low of about $4.00+ and then a max of about $4.20+.

Puzzling me especially when the latest financial statements haven't been exactly promising (net operating income fall, although gross profit increased).

With the 4th Telco coming up soon, I expect market share of the Telcos to be more diluted. There will be more competition with better mobile and data plans. That probably means a relatively slow growth (granted that population increase means a bigger consumer base).

The Price/Earning is 20 times. Crazy or what?

Sometimes I think people aren't really sure what to invest so they put their money into the highly raved SH and just go on shut off mode. That is fine too, especially if you do not want to constantly monitor the market and you are ok with returns of 4.5%.

For me, I can use the money to generate more returns with better growths. So SH at the moment is a No for me.

Dividends paying stocks in Apr/May 2015.

Hello there.

If you haven't know, Apr is a bountiful month. Many stocks pay dividends during this month!

These are the stocks which I expect dividends to be paid out in Apr/May 2015 and are in my portfolio:

Of course, I have bought the stocks at a much lower price, so my yields are higher than the stated above.

My basis  is also on past historical dividend announcement dates in 2013/2014.

The yields are based ONLY on their dividends, which I took reference from Year 2014 data. The dividends are generally consistent and stable. Some stocks enjoy both high growth and high dividends, which makes their yields much higher than stated.

It is important to know that you have to purchase the stock before the Ex-dividend date. Also, knowing in advance when are the dividend paying months allows you to monitor the stock prices early and only take position when the stock has a slight correction.

I tend to think that stocks prices generally fall after the ex-dividend date. But if you are looking into a long term investment horizon, then this slight fall shouldn't be a deciding factor. Wouldn't it be good if you can earn one more dividend payout?

Heidi.