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Sunday, April 3, 2011

March 2011 Portfolio Update

Having liquidated my lone S chip- Dapai International with reasons here, my Long Term holdings now consist of only 5 stocks:

Stock Bought Buy Price
MIT $0.930
Sabana $1.050
First REIT $0.700
ST Engineering
Poh Tiong Choon Log 0.48

Comments:

MIT: At my buy price, 93c at IPO, gives close to an 8% yield + 12% capital gain at closing price of $1.05. Not divesting because: Reasonably high yield at my price and peace of mind from a strong parent. Even as CIT, First, Sabana and AIMSAMPIREIT give almost 10% yield at their price, I'm willing to accept a lower yield for MIT's "blue chip-ness", so to speak.

Sabana: 8.22% yield this year and 8.5% projected yield at my price, $1.05. 11% capital loss currently. At current prices, Sabana gives a 9.5% yield- highly attractive yet commensurately high with erstwhile troubled AIMSAMPIREIT and CIT. Not divesting, as I only have 1 lot, so will just chuck this into the freezer. Seeing heavy selling by BB's recently, having touched an all time low of 92c last week. AK71 of ASSI has a summary of Sabana here.

My first freezer stock.....  :(

First REIT: Saw heavy selling during the Japanese crisis, has recovered somewhat but not to the fervour of January 2011 yet where it touched a high of 77c due to a highly favourable OCBC research report. Gives me a projected 9.5% yield at my buy price and also 5.5% capital gain YTD. Received a small dividend in Jan 2011.

Poh Tiong Choon Logistics: I bought this for pretty dumb reasons here and I probably suffer from confirmation bias now. Looking back, it was a POOR decision to buy at that point. Why? Look at the technicals at the time I bought. Way above the value zone. I was very "gian gian" to enter. Luckily for me, I didn't suffer too heavy a paper loss.

As for the fundamentals: PTC showed a pretty good 2H 2010 profit turnaround. Insiders are still buying and buying and providing a support at 43cents. I usually see 100 lots buy queue at 43cents everyday. 2cents dividend coming next month.

ST Engineering: A very blue blue chip, owned by our government. No need to say anything. 11.55cents coming in May. Nice capital appreciation for me too :)

May looks to be a good month: $400 coming from the government due to budget 2011, 11.55c a lot from ST engg, Sabana distribution, maybe First and MIT too.

8 comments:

  1. Hi,

    What exactly is a "freezer" stock?

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  2. hi MW.
    haha, it's a poor performing stock which is not really worth to cut yet you "no eyes see".

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  3. Hi Isaac,

    Why is it not worth to cut? If you base on TA, I understand there are strict rules on cut-loss. If you are using FA, then you should assess if you were wrong/right based on fundamental values for the Company.

    If a freezer stock is really what you define it as, then might as well free up the capital and re-deploy it to enjoy potential yield + capital gains elsewhere. Unless, of course, the freezer stock is still paying a decent yield on its own, then there is still some justification for retaining it in one's portfolio.

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  4. Hi MW,

    as spoken on the cbox, Sabana is a pretty interesting case.

    Even though I do have a 12% capital loss, the yield this year and next is around 8.5% pa. so eventually I'll make some money, assuming unit price does not drop and no catastrophic events occur. (Quite a tall order)

    So yea. Interesting case there.

    TA wise, there's a nice bullish move on the charts. If it does reach $1 i will consider divesting.

    thanks for visiting my blog. You always give critical comments that help me and other newbies learn more. :)

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  5. Hi Isaac,

    Notice that you changed your blog interface. Thumbs up! :)

    I agree with you on MIT. Unfortunately I did not get it at 93 cents IPO price. But am willing to average down again. My average price is 1.08.

    Cheers,
    Ken

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  6. Hi Ken,

    thanks! The old interface was too cluttered, haha.

    We spoke before on MIT on the cbox. Agree with you that it's a good buy even now.

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  7. Hi Drizzt.

    Thanks for visiting. I enjoy reading your blog :)

    MIT's indicative yield during IPO was ~8% for 2011 and 2012. Obviously since it's now priced at 10% over IPO pricing, the yield is somewhere closer to 7%.

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