SRS - Closing status 15 November

Divested away SingPost 5 lots in this week from my SRS portfolio for a nett gain of $14 as part of regular portfolio re-balancing.  In its 2Q2014 results, revenue +32.6%, Profit +9.7%. Total expenses +34.9% as its business expands and transforms into a diversified group with a bigger regional presence and lower-margin businesses   There is much room to improve on synergy and productivity from within.  Finance expenses -65.8%  as it had repaid the $300 mil bond in Apr'13.  Healthy operating cash flow.  It continues to conserve cash to support its investment needs as part of its growth strategy , anticipated capex, working capital and other funding requirements.

Added Asian Pay TV(APTT) 5 lots so total holding in it now at 13 lots under SRS portfolio.  Subscriber households have grown, average revenue per subscriber is constant, penetration rates have increased, all leading to growth in recently acquired Taiwan Broadband Communications (TBC) earnings.  Taiwan regulator already approved TBC expansion to greater Taichung which opens up opportunity to increase  household network coverage by up to 400,000.  NAV as of end June at $0.94 and last done share price at discount of $0.77.  Interest rate swaps have been entered into, which fix a significant portion of the interest rate exposure from TBC's borrowings.  For growth in penetration rates, premium digital cable tv and broadband to increase as a result of up-selling and bundling strategies, increased set-top box penetration, greater availability of digital content, need for reliable internet access.  Network expansion through re-zoning is an opportunity for APTT.  Positive ongoing discussions with Taiwan tax authorities to resolve tax dispute.

Portfolio walk since previous posting :-

+$7,897 Total Returns as of 08 Nov

+$14 Gain on sales of SingPost

-$16 Unrealised positions worsened

+$7,895 Total Returns as of 15 Nov

previous posting :- SRS - Closing status 08 Nov