CPF - Closing Status 30 August

For my CPF portfolio this week l have invested into First Reit 2 lots.  It pays reasonably good annual dividend of 6.9% based on my investment costs in it so l am okay to be stucked with this investment.  But my preference is short term and l am trying to get an advance dividend from it by using an exit selling price matching to its next dividend payment.  However if l am stuck with this investment then l will treat it as passive income stream. 

Portfolio walk since previous posting :-

-$8,648 Total Returns as of 23 Aug

-$1,005 Unrealised positions worsened

-$9,654 Total Returns as of 30 Aug

previous journal :- CPF - Closing Status 23 Aug

SRS - Closing status 30 August

For this week under SRS portfolio l have invested into Ascendas Reit 2 lots.  If l am stuck with this investment then based on my investment costs in it then l can expect a 6.4% dividend yield per year from it.  For now, l am eyeing an exit selling price equal to its next dividend payment in Nov'13. 

Portfolio walk since previous posting :-

+$5,041 Total Returns as of 23 Aug

-$418 Unrealised positions worsened

+$4,624 Total Returns as of 30 Aug

previous posting :- SRS - Closing status 23 Aug

Equal Ark

Donated $25 to Equal Ark (“Equine-Assisted Learning for At Risk Kids”)

EQUAL-ARK is an Equine Assisted Learning Programme specially designed to help children who are considered to be 'at-risk'.   These children come from disadvantaged families or face a range of challenges that puts them at risk of developing social and behavioural problems.

The programme is designed to boost the children’s inter-personal skills as well as their general self-esteem through a specialized range of horse-related activities. Targeted areas include:

■self-discipline
■concentration
■problem solving
■empathy
■communication skills
■teamwork

http://www.equal.org.sg/

Cash - Closing Status 23 August

Invested into First Reit 2 lots in this week under Cash portfolio.  But in the same week l have divested it away for nett gain of $49.  Using last year as a guide, next dividend will XD on 31 October and dividend payment to happen on 29 Nov for dividend rate of $0.0168.   If l have invested and hold then l can expect dividend amount at $34 but the nett gain for divesting it away in this week was at a higher amount (2 lots x dividend rate $0.0168 x 1.47 times).  And l  have already collected its dividend instead of waiting for its payment date, earlier by three months.  Also l have freed up available funds for other investment opportunities.

Increased my holding in SingPost 1 lot in this week under Cash portfolio.  Cost management is key element to watch as Qtr 1 higher revenue was quickly eroded by it.  Hopefully it can quickly finding synergies among its businesses especially from recently acquired ones.  Also, with 7th consecutive quarter of domestic mail volume decline so it clearly shows the need for it to (tactfully) continue with its transformation journey.

In this week for my Cash portfolio, l have invested into AIMS AMP Industrial Reit 1 lot.  Based on my investment costs in it l am looking forward for an annual dividend yield of around 7.1%.   Also, for the next quarter, AIMS AMP expects additional rental income from the completed phase II of 20 Gul Way and this will boost distributions further.

Increased my holding in Keppel Reit 1 lot in this week under Cash portfolio. So my total holding in it now at 3 lots.  Reasonably good annual dividend yield of 5.9%.
 
Invested into Rickmers Maritime 18 lots for Cash portfolio in this week.  Reasonably good 2Q13 results.  Fleet utilization was at 99.7% in 2Q13.  It continue to successfully deleverage resulting in a stronger balance sheet.   Freight rate restoration started in July and a further freight increase have happened in August.  Assuming annual dividend rate maintained at US$0.024 then l can expect a 11% yield.

Got into Asian Pay TV 4 lots under Cash portfolio before it went XD in this week.  Investment amount of $3.5k in it is not so significant but l will certainly looking forward to a 10.3% dividend yield from it.  

Portfolio walk since previous posting :-

+$1,891 Total Returns as of 16 Aug

+$49 Gain on sales of First Reit

-$1,734 Unrealised positions worsened

+$206 Total Returns as of 23 Aug

Previous posting :-Cash - Closing Status 16 Aug

SRS - Closing status 23 August

For this week under SRS portfolio l have invested into Cache Logistics 1 lot in this week.  Good results for 2Q2013.  DPU grew by 8.4% even though unit base got increased after its recent private placement in Mar'13.  No logistics warehouse (properties) renewal risk in 2013 as all expiring leases have been renewed.  Next leases renewal happening in year 2014 is for a small gross floor area of 6%.

Invested into Rickmers Maritime 18 lots for SRS portfolio in this week.  Reasonably good 2Q13 results.  Fleet utilization was at 99.7% in 2Q13.  It continue to successfully deleverage resulting in a stronger balance sheet.   Freight rate restoration started in July and a further freight increase have happened in August.  Assuming annual dividend rate maintained at US$0.024 then l can expect a 11% yield.

Got into Asian Pay TV 3 lots under SRS portfolio after it went XD in this week.  It's a small investment amount of $2.5k and l will certainly looking forward to a 10.8% dividend yield from it.  

Portfolio walk since previous posting :-

+$6,143 Total Returns as of 16 Aug

-$1,102 Unrealised positions worsened

+$5,041 Total Returns as of 23 Aug

previous posting :- SRS - Closing status 16 Aug

CPF - Closing Status 23 August

For my CPF portfolio this week l have invested into Mapletree Industrial 3 lots.  It pays reasonably good annual dividend of 7.1% based on my investment costs in it so l am okay to be stucked with this investment.

Portfolio walk since previous posting :-

-$7,554 Total Returns as of 16 Aug

-$1,095 Unrealised positions worsened

-$8,648 Total Returns as of 23 Aug

previous journal :- CPF - Closing Status 16 Aug

Passive income investors panicking now?

Passive income investors :-

• no selling action when share price going up and higher; the wonderful feeling of paper gain (say, $50k)

• when market starts correcting so paper gain reduced (say, to $20k) or turned into paper loss   

• starts to sell when market continue to correct further so turning paper loss into locked-in losses (say -$10k)

• lacking or no more bullets because paper gain (of $50k) was not locked-in when share price was higher; and at the same time suffering realized losses (of -$10k)

where is the rationale???

Portfolio rebalance and capital preservation

In recent weeks I have seen a number of passive income investors (PII) selling stocks at realized losses. 

For PII, in their stock portfolio are not speculative stocks; in in their portfolio are reasonably well and good dividend stocks.  PII should not be too distracted by movement of stock prices - ups and downs. 

If PII needs to re-balance her (/his) stock portfolio then when is the best time to do so?   Is doing portfolio re-balancing during shares prices going through correction is a good move?  Especially when divesting it away at realized loss!  A better time to do portfolio re-balancing is when the stocks in the portfolio are having paper gain status; during market bull run. 

Is it a good move to preserve capital or building up war chest for investing during a bear market?  By divesting stock at realized loss then is this still an act of capital preservation when in the first place PII should actually do nothing and enjoying the dividends paid quarterly or semi-annually? By locking up (realized) profit when stock market prices are up then PII can preserve capital and building up war chest. 

 

Cash - Closing Status 16 August

For my Cash portfolio this week l have invested into Mapletree Industrial 1 lot.  It pays reasonably good dividend of 6.9% based on my investment costs in it so l am okay to be stucked with this investment.

 
Portfolio walk since previous posting :-

+$2,800 Total Returns as of 7 Aug

-$909 Unrealised positions worsened

+$1,891 Total Returns as of 16 Aug

Previous posting :-Cash - Closing Status 7 Aug

SRS - Closing status 16 August

Invested into Mapletree Commercial Trust 2 lots in this week under SRS portfolio.  VivoCity maintains respectable growth despite a significant number of tenants undergoing fit-out; also improving performance at PSA building.  No debt due to expire in FY 2013/14; started exploring options to refinance debt due to expire in FY 2014/15.


In this week for my SRS portfolio, l have invested into AIMS AMP Industrial Reit 4 lots and got attacked by short sellers almost immediately.  I am already down by -6.7% on this new investment as of Friday's closing; rotten luck.  But l will not be over worrying as l am looking forward from it an annual dividend yield of around 6.7%.   Also, for the next quarter, AIMS AMP expects additional rental income from the completed phase II of 20 Gul Way will boost distributions further.

Portfolio walk since previous posting :-

+$7,265 Total Returns as of 7 Aug

-$1,122 Unrealised positions worsened

+$6,143 Total Returns as of 16 Aug

previous posting :- SRS - Closing status 7 Aug

CPF - Closing Status 16 August

Received the CPF Investment statement from the bank in this week for July month.  Have updated CPF portfolio with the correct charges incurred on both investments and divestments made in July month.

Portfolio walk since previous posting :-

-$6,691 Total Returns as of 2 Aug

-$5 Realized transactions differences per CPF Investment statement from bank

-$858 Unrealised positions worsened

-$7,554 Total Returns as of 16 Aug

previous journal :- CPF - Closing Status 2 Aug

Is that investment paper gain so important?

At times, l wonder why would people want to invest and holding on to their paper gain? 

If my portfolio already running at 10% - 20% paper gain then is there any valid reason to keep holding on to it?  Is it meant for the next generation?  Then, is the next generation really so incapable of starting at ground zero?  l am certain there are some successful investors out there growing their wealth from ground zero.   So, it is good to divest away stocks that are already having more than 10% paper gain and re-investing on the proceeds.

Is keeping the 10% - 20% paper gain on the stock holding is to demonstrate one's ability of being a genius?  Will that kind of paper gain able to bringing food to the table for the family members?

Invest and hold only brings a sense of insecurity; e.g. if l divest away my stocks holding to achieve realized gain of 10% - 20% then l am faced with re-investment risk at higher share price levels.  If one's purpose is to invest and hold then why be bothered with paper gain and losses. 

Stock markets are subject to up and down cycle.  A paper gain of 10% - 20% of one's stocks portfolio will at one point of time turning into paper loss; touch wood.  Unfortunately it's the reality of stock investing.

Bulls, bears, chickens and pigs

info source :- Investopedia.com


A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook".

A bear market is when the economy is bad, recession is looming and stock prices are falling. Bear markets make it tough for investors to pick profitable stocks. One solution to this is to make money when stocks are falling using a technique called short selling. Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook".

Chickens are afraid to lose anything. Their fear overrides their need to make profits and so they turn only to money-market securities or get out of the markets entirely. While it's true that you should never invest in something over which you lose sleep, you are also guaranteed never to see any return if you avoid the market completely and never take any risk,

Pigs are high-risk investors looking for the one big score in a short period of time. Pigs buy on hot tips and invest in companies without doing their due diligence. They get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investment vehicles. Professional traders love the pigs, as it's often from their losses that the bulls and bears reap their profits.

There are plenty of different investment styles and strategies out there. Even though the bulls and bears are constantly at odds, they can both make money with the changing cycles in the market. Even the chickens see some returns, though not a lot. The one loser in this picture is the pig.

SRS - Closing status 7 August

Invested into Starhub 2 lots before its 2Q2013 results announcement.  Starhub declared the usual dividend rate $0.05 (so, expected dividend amount 2 lots x dividend rate $0.05 = $100) which will XD on 14 Aug and payment date 29 Aug.  As usual, l have eyed my exit selling price to be the  dividend rate.  In this same week l have divested my 2 lots holding of it at $117 nett gain.  The nett gain amount is slightly higher than the expected dividend amount and l have already collected it by 3 weeks in advance.  Of course its share price went up higher but as l dislike trading (and speculating) and always targeting my exit selling price at the dividend rate (or higher than bank deposit rate) so l am always at peace with my investments and divestments.

Portfolio walk since previous posting :-

+$7,418 Total Returns as of 2 Aug

+$117 Gain on sales of Starhub

-$270 Unrealised positions worsened

+$7,265 Total Returns as of 7 Aug

previous posting :- SRS - Closing status 7 Aug

Cash - Closing Status 7 August

CDL Hospitality Trusts share price dropped further in this week so l have increased my holding in it from 2 lots to 3 lots now.   It reported a weaker 2Q2013 results due to stiff hotel competition in Singapore and lower corporate bookings.  I am probably stuck with this investment now but l will have no regrets as l will consider it a good problem to have.  This is because of its reasonably good dividend yield of around 6.6% based on my investment costs in it and projected annualized dividend rate by CDL HTrust.  

Invested into Starhub 1 lot before its 2Q2013 results announcement.  Starhub declared the usual dividend rate $0.05 (so, expected dividend amount 1 lot x dividend rate $0.05 = $50) which will XD on 14 Aug and payment date 29 Aug.  As usual, l have eyed my exit selling price to be the  dividend rate.  In this same week l have divested my 1 lot holding of it at $68 nett gain.  The nett gain amount is slightly higher than the expected dividend amount and l have already collected it by 3 weeks in advance.  Of course its share price went up higher but as l dislike trading (and speculating) and always targeting my exit selling price at the dividend rate (or higher than bank deposit rate) so l am always at peace with my investments and divestments.

Portfolio walk since previous posting :-

+$2,710 Total Returns as of 2 Aug

+$68 Gain on sales of Starhub

+$22 Unrealised positions improved

+$2,800 Total Returns as of 7 Aug

Previous posting :-Cash - Closing Status 2 Aug

Cash - Closing Status 2 August

Divested SingPost 4 lots in different days (in Jul/Aug) within this week under Cash portfolio for nett gain of $58.  With this divestment l am still having remaining 9 lots of it as "forced" passive income investment.  On the 4 lots which was divested away in this week, the expected dividend will be 4 lots x dividend rate $0.0125 = $50.  The nett gain $58 is a slightly higher amount and l have already collected this dividend in advance by one month (actual dividend payment date is 30 Aug). 

Also in this week l have divested away First Reit 4 lots for nett gain of $35.  I have divested it away before it went XD on 2 Aug so l will not get its full dividend amount (4 lots x $0.0086 = $34), matching the nett gain achieved.   So l  have already collected its dividend instead of waiting for its payment date in one month's time on 29 Aug.   Will re-invest into First Reit, hopefully at lower share price levels.

Portfolio walk since previous posting :-

+$3,089 Total Returns as of 26 July

+$93 Gain on sales of SingPos, First Reit

-$472 Unrealised positions worsened

+$2,710 Total Returns as of 2 Aug

Previous posting :-Cash - Closing Status 26 July

CPF - Closing Status 2 August

Invested into SingPost 8 lots in this week under CPF portfolio.  I have always like SingPost for its predictable dividend rate which have been quite "fixed" since year 2007.   Cost management is key element to watch as Qtr 1 higher revenue was quickly eroded by it.  Hopefully it can quickly finding synergies among its businesses especially from recently acquired ones.  Also, with 7th consecutive quarter of domestic mail volume decline so it clearly shows the need for it to (tactfully) continue with its transformation journey.

Portfolio walk since previous posting :-

-$6,289 Total Returns as of 26 July

-$402 Unrealised positions worsened

-$6,691 Total Returns as of 2 Aug

previous journal :- CPF - Closing Status 26 July

SRS - Closing status 2 August

Sold away First Reit 5 lots in this week for nett gain of $39.  I have divested it away before it went XD on 2 Aug so l will not get its full dividend amount (5 lots x $0.0086 = $43).  Even though the nett gain is slightly lower than the full dividend amount but l have already collected it in advance instead of waiting for its payment date in one month's time on 29 Aug.   Will re-invest into First Reit, hopefully at lower share price levels.

Added CM Pacific 5 lots so my total holding in it now at 8 lots.  It will announce its 2nd Qtr results on Wednesday 7 Aug.  Gauging from its low daily volume l think its 2nd Qtr results will be in line with "business as usual" type and so, it is likely to declare a usual dividend rate of $0.025-$0.0275.  It will probably unveil its next action plan on the recent failed disposal of its property development business in New Zealand.  

 Invested into SingPost 5 lots in this week under SRS portfolio.  I have already collected its dividends in advance when l have divested 10 lots of it away in last week.  Let's see whether l can be 2nd time lucky this time round or keeping it as a "forced" passive income investment.  I have always like SingPost for its predictable dividend rate.

Portfolio walk since previous posting :-

+$7,659 Total Returns as of 26 July

+$39 Gain on sales of First Reit

-$280 Unrealised positions worsened

+$7,418 Total Returns as of 2 August

previous posting :- SRS - Closing status 26 July

Is owning credit card a bad thing?

Never underestimate what great savings credit cards have to offer.  Own as many credit cards you want but immediately making payment to them once an expense is charged to it.  In this way, you get to accumulate the points or cash rebates and at the same time you are freeing up yourself of credit card debts.  Making credit card payment is so easy nowadays - via AXN, ATM machine, self service Cash Deposit Machine (for Citibank), online banking (my personal favorite). 

Owning as many credit cards as you want is necessary as each has its own merits --> for discounts, cash rebates, etc.  But do remember to make payment to them immediately or as soon as possible (within 1-2 days); which will ensure that you keep a clean record with the credit bureau.  On this point, credit card companies from time to time offer free gifts when you signing up credit cards with them so it's not worth keeping to the same plastic for many years.

Like a broken record l would like to remind again, "please making payment on the expense which you have charged to your credit card, immediately".  So, go ahead - own and swipe your credit cards "freely" and enjoy the savings.