Tuesday 26 May 2015

Local/Foreign Portfolio Log (May 2015)

Good Day,

May has come and almost gone. And traditionally the portfolio does throw out a fair bit of cash in May, and this time round I've got a nice S$1.8k payout from the portfolio. As a result of a whole bunch of XDs, the portfolio value has since fallen from the nice $150k number reported last month.

A few significant updates off the top of my head from the most recent earnings season with regard to my local portfolio.

One of my larger holdings, SIA Engineering, reported another sub-par quarter. In addition, the final dividend has also been slashed from $0.20 last year to $0.085. The past year has been rather turbulent for the company, and from what I know, its due to airlines delaying heavy checks, reduction in engine shop visits due to newer engines requiring less frequent maintenance and overhaul. I would think that this level of earnings would continue in the near term (next 1-2 years). I still believe in the long term growth prospects of the company, its strong balance sheet, and the fleet service joint venture with Boeing looks promising in the long run.

Boustead Singapore also spun off its infrastructure developing arm into the newly listed Boustead Projects. As a result, I've gained 1800 shares of Boustead Projects. To be honest, I have only briefly glanced through it's prospectus, and I don't know much about the financial details of Boustead Projects. But from what I've noticed, the spinoff did unlock some shareholder value which was previously discounted as it was part of a larger conglomerate.

Many Singtel investors were expecting a special dividend this year, however none was announced. On a bright note, it did increase its final dividend payout marginally this year from 10 cents per share to 10.7 cents.

Another bright spark in the portfolio was SATS, one of my larger holdings as well. Though revenue remained stagnant, profits and EPS increased by quite a bit. A large contributor in my opinion was its cost-cutting and efficiency increasing efforts over the past year. It also increased its final dividend from 8 cents to 9 cents this year. SATS is a keeper for its strong balance sheet and free cash flow, though only time will tell whether it is able to increase its top-line. Also at current stock prices, in my opinion it is slightly overvalued by the market.

The rest of my holdings have been pretty stable in its earnings, not counting the oil and gas plays. Once again, my holdings are as shown below:

Stock  Shares Market Value (S$) % of Portfolio
SingTel 5000 21,200.00 14.29%
Keppel Corp 2000 17,680.00 11.92%
SIA Engineering 4000 16,080.00 10.84%
SATS 4000 13,400.00 9.03%
Ascendas Reit 4000 10,120.00 6.82%
CapitaMall Trust 4000 8,880.00 5.99%
Boustead 6000 8,640.00 5.83%
Sembcorp Ind 1900 7,961.00 5.37%
ST Engineering 2000 7,040.00 4.75%
ComfortDelGro 2000 6,100.00 4.11%
SingPost 3000 5,580.00 3.76%
Suntec Reit 3000 5,490.00 3.70%
Keppel DC Reit 5000 5,350.00 3.61%
CapitaCom Trust 3000 4,875.00 3.29%
Cache Log Trust 4000 4,640.00 3.13%
Keppel Reit 3000 3,570.00 2.41%
Boustead Proj 1800 1,710.00 1.15%

Portfolio Value $148,316
Dividends (May) $1,841.94
Average Monthly Dividends $554

A long time since I have updated on my foreign holdings. Over time, I have been slowly adding to them, and they've been providing decent returns (asides from my speculative punt in Solazyme). Oil and Gas plays (Shell, British Petroleum and to a lesser extent General Electric) have been rather volatile due to commodity price volatility and supply-side gluts. My UK and US portfolios as shown below:

UK Portfolio:

Stock  Shares Market Value (£) % of Portfolio
Royal Dutch Shell 130 2,600.65 31.19
GlaxoSmithKline 140 2,050.30 24.59
Unilever 58 1,670.98 20.04
Royal Mail 179 901.27 10.81
Tesco 200 438.80 5.26
British Aerospace 77 396.94 4.76
British Petroleum 61 279.23 3.35

Portfolio Value £8,338
Dividends (May) £78.66
Average Monthly Dividends £32.47

US Portfolio:
Stock  Shares Market Value (US$) % of Portfolio
General Electric 75 2,076.00 65.07
Procter & Gamble 10 799.50 25.06
Solazyme 100 315.00 9.87

Portfolio Value $3,190.50
Dividends (May) $0.00
Average Monthly Dividends $7.95

Until next time!