Cash - Closing Status 25 Oct

For my Cash portfolio this week, l have made silly and costly investment mistake, again.  I have wanted to re-invest into 2nd Chance 40 lots.  l was in a great hurry to attend to another urgent matter when l placed my buy order on 2nd Chance.  It was such a huge mistake as l did not aware l have wrongly placed a sell order instead and l did not even pause to review the pop-up order confirmation.  l have immediately queued to buy back at same price level but failed.  So, l bought back 40 lots at higher price a few minutes before market closed and l got poorer by $322.    

Finally managed to sell away Lee Metal 2 lots for a $6 gain.  I have waited for its share price to go lower since 8 June week in order to increase my investment in it so that l can lower the cost per unit in it.  As its share price did not weaken so l have decided to sell it away.  Based on 2nd Qtr results, even though total revenue is lower but gross profit margin improved.  No worry of higher debtor as this is probably due to higher sales in Qtr 2 comparing to Qtr 1.  Inventory has lowered and this is a very prudent decision to make as Singapore economy has weaken.  Lee Metal had decided to invest on newer machines and decommissioned older ones to expand capacity and improve productivity.  Will re-invest into Lee Metal if it is able to continue maintaining good gross profit margin, positive PBIT, strong balance sheet, etc., once its share price weakens.

Managed to get Starhub 4 lots this week when its share price was close to 4-weeks low.  I am expecting it to declare the same dividend rate of $0.05 when it goes XD around 15 Nov.  For 4 lots l will get $200 (4 lots x $0.05) as dividends if l keep my invested funds in it till XD.  But l reckon there is no need to wait till then when l can already get half of the dividends in advance now (within the same week!) as l managed to divest all of it for a gain of $99.

Also this week under Cash portfolio, l have invested into M1 5 lots when its share price was already weakens to 4-weeks low.  Its next XD is in April'13.   Investing in M1 cost lesser and hence resulting in highest dividend yield comparing to other two bigger competitors (SingTel / Starhub).    If share market tanked and its share price going lower then l will keep it for good dividends income stream.

Religare Health Trust share price yet to go higher than its IPO price level of $0.90 as there are many viewing it as a bad investment option.   l beg to differ with views that India related businesses are destined to doom.  There is an existing business trust (Indiabulls) listed in Singapore dealing primarily with commercial space and residential property in India which is giving everyone the shudders as it did not pay a single dividend since IPO in Jul'08; but starts giving out dividends for the very 1st time which XD Dec'12.  But everyone seem to forget that there is one other business trust (Ascendas India) doing quite well in India which primarily dealing with  rental of investment properties.  There are many other world class India businesses - Tata Consultancy, ITC, HDFC Bank, Bharti Airtel, Tata Motors, Sun Pharmaceutical, and many more companies.  So, for now l have invested into Religare 6 lots this week.  I will look at Religare's performance and will decide accordingly whether to include it in my so-called permanent watch list.

 

Portfolio walk since previous posting :-

+$295 Total Returns as of 19 Oct

+$105 Gains on sales of Lee Metal and Starhub

-$322 Loss on 2nd Chance investment mistake

-$129 Unrealised positions worsened

-$51 Total Returns as of 25 Oct

previous posting :- Cash - Closing Status 19 Oct

Cash - Closing Status 21 Sep

Received a cheque of $10 this week under Cash portfolio from Lee Metal.  This is for the 2 lots which l was unsuccessfully selling it away in Jun'12.  In latest results for 2Q12, its gross profit margin improved on a lowered revenue.  The improved gross profit margin actually helped to lift its PBIT.  With an annual dividend yield of 8.70%, l am hoping to re-invest into it if its share price visits 20 cents and lower. 

Invested into CDL Hospitality Trusts (CDL HTrust) 5 lots this week when its share price weakened slightly.  Its dividend yield is at 5.30%; which is not great but not that really bad. I did not hold on to it but selling it all away for a 0.84% yield as l was unsure whether its share price is able to go above $2 mark.

Portfolio walk since previous posting :-

+$254 Total Returns as of 14 Sep

+$82 Gains on sales of CDL HTrust

+$10 Dividends from Lee Metal

+$463 Unrealised positions improved

+$810 Total Returns as of 21 Sep

previous posting :- Cash - Closing Status 14 Sep

Cash - Closing Status 8 Jun

Queued to invest into Lee Metal on 8 Jun. But only managed to get 2 lots so, the costs of investment is really high and this is due to the minimal brokers charges of $25.  Seems that l will have to continue to get more of Lee Metal so that l am able to cover the minimal broker charges when it is time to sell it away. 

Lee Metal's steel business is likely to continue weigh down total gross profit margin.  But l am certain management will continue to focus on higher ASP mix for its steel business to minimize the margin erosion.  On fabrication and manufacturing, though competition is getting into bitter fight over a shrinking business pie but if Lee Metal is able differentiate itself on being of better value proposition then this segment will continue to grow but l am hoping this is not at the expense of falling margin.

  
Portfolio walk since previous posting :-

-$454 Total Returns as of 1 Jun 

-$888 Unrealised positions worsened

-$1,342 Total Returns as of 8 Jun

previous posting :- Cash - Closing Status 1 Jun