Investment activities - week ending 24 Feb

There is no movement to both CPF and SRS portfolios in this week so am updating Cash portfolio as below.

Serial (S69)

Sold Serial System 19 lots this week; a day before its results announcement.  Nett nett gain at $86.  If this is kept till ex-dividend date then l will get $63 and from past record, the expected dividend payment date is 14 May.  So,  l have actually collected the dividend in advance and at higher amount.  Since 2001, its Revenue CAGR is 26%.  Measuring from year 2006, its semiconductor revenue CAGR is at 22% versus Asia Pacific semiconductor industry CAGR of 7%.  Its gross profit CAGR is at 15% since year 2005.  Though l would prefer a CARG data of the same starting year but these few CAGR info shows good growth track for Serial System. It must however, not losing focus and monitor very closely its increasing inventory and trade receivable turnover days.  l will reinvest into Serial System again at good entry price point.

The share market (local and global) seems overbought at this moment.  But in both bear and bull market, l reckon there are always (both long and short term) opportunities.  So, l did some purchases this week; as below.

Mun Siong MF6) 
Quick financials :- (based on full year results released on 10 Feb) Revenue +6.5%, lower gross profit margin in 2011 due to more complex scope of project work in 2010, current ratio 5.3 times, healthy operating cash flow before working capital changes. 
No. of shares purchased : 10 lots
Dividend rate : 0.6 cents
Ex-dividend date : Not announced yet.  Expected this to be on 27 April.
Plan A : To sell at exit selling price based on the dividend rate and am hoping this to happen within 60 days - which is the time-frame between now till 27 April.
Plan B : If stock price facing resistance between now and 27 April, then to sell it off at break even or at lower exit selling price target for a smaller nett gain.
Plan C : If stock price goes south and holding time frame already past 27 April then to hold for selling it at break even within six months.  Average down if necessary, in order to sell it off at break even.

Foreland (B0I) 
Quick financials :- (based on nine months results released on 14 Nov) Revenue +175%, gross profit margin improved to 29% from 18% in 2010, current ratio 3.5 times, healthy operating cash flow before working capital changes, Foreland issued higher revenue and profit alert on 14 February.
No. of shares purchased : 35 lots
Dividend rate : Not announced yet. Expected it to be higher than previous year 0.379 cents.  In order to form the exit selling price l have assumed and used the dividend rate of 0.51 cents.
Ex-dividend date : Not announced yet.  Expected this to be on 10 May.
Plan A : To sell at exit selling price based on the assumed dividend rate and am hoping this to happen within 74 days - which is the time-frame between now till 10 May.
Plan B : If stock price facing resistance between now and 10 May, then to sell it off at break even or at lower exit selling price target for a smaller nett gain.
Plan C : If stock price goes south and holding time frame already past 10 May then to hold for selling it at break even within six months.  Average down if necessary, in order to sell it off at break even.

HockLianSeng (J2T) 
Quick financials :- (based on full year results released on 22 Feb) Revenue -29% due to the completion of the Marina Bay station project , gross profit margin improved to 25% from 13% in 2010, current ratio 1.5 times, healthy operating cash flow before working capital changes.
No. of shares purchased : 6 lots
Dividend rate : 2 cents
Ex-dividend date : 7 May
Plan A : To sell at exit selling price based on the dividend rate and am hoping this to happen within 71 days - which is the time-frame between now till 7 May.
Plan B : If stock price facing resistance between now and 7 May, then to sell it off at break even or at lower exit selling price target for a smaller nett gain.
Plan C : If stock price goes south and holding time frame already past 7 May then to hold for selling it at break even within six months.  Average down if necessary, in order to sell it off at break even.


previous journal :-   Cash - Closing Status 17 Feb