Monday, 19 January 2015

Diverting of Portfolio


I am glad I'm on off today so that I have the chance to go through a day of volatile stock market in the STI which finally ended at 3307.700 (+7.020).

Primarily, my focus is on few stocks on my Holding List and Watchlist which most of the time, I am looking at Capitamall Trust and Keppel Corp.

It's been awhile since I wanted to divert my REITS stocks to Growth stocks hence today I've made up my decision and take chance on the volatile market.  As today is a day where people can starting buying shares in multiply of 100.

I managed to purchase 1100 units of  Keppel Corp @ $8.10 = $8910 (closed $8.18) 

On the other hand, I am still trying to sell off my 4000 units of Capitamall Trust @ $2.18 = $8720  (closed $2.16) looking to realise a paper gain of $1056 not including the brokerage. I will give this a go until this Friday, 23 Jan before the market closes. If not I will just settle to whichever is the next highest before the stock market closes on Friday.

The reasons why I buy Keppel Corp:
1) This is an appropriate time to get Keppel due to the falling oil prices. (I don't want to keep guessing/predicting about how much further the oil price will drop, i believe at this point my entry is relatively conservative already)

2) When the oil crisis saga ends, the price will recovery back to about 30-40% (don't know when, but it's a waiting game)

3) Dividends yield not too shabby (average of 5%)

4) I want to make full use of a crisis and here's the chance.

The reasons why I choose to sell off my holding of Capitamall Trust:
1) I believe it's a relatively matured stock which may have slow growth from now onwards.

2) It will realise me a profit of $1056 not inclusive of brokerage fees.

3) I believe FCT still has the potential to grow further so I don't want to touch it.


Would like to hear from your sharing and what do you think if you were me?


PS: The aboves reasons are only made of what I feel and what I think, hope fellow investors have no offence.

8 comments:

  1. Hi Jfree

    The Keppel buy is rather decent but all will hang on the possibility of oil price coming back. It's a matter of when but given the stability of Keppel balance sheet, they should be able to withstand this turmoil.

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    1. Hey B

      Certainly they should be able to withstand this turbulence! As from my calculations, switching my CMT to Keppel should be beneficial in a long run. Personally I think it's a 1 stone kill 3 bird strategy for myself.

      1) Rebalance my overweighted REIT portfolio
      2) Get about the same amount of dividends as CMT (avg 5%)
      3) Able to expect a higher gain in a long run

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  2. Hi Jfree,

    I think CMT is safer than the Japanese retail REIT that you have, with currency risk and uncertainty in REIT overseas tax. Your money, your choice.

    Cheers,
    Farmer.

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    1. Hi PIF.

      yes i agree with that but because my holding of Croesus is making quite a loss currently, i would wanna hold it for awhile more before i do any thing to it. hopefully by then it may expand further and become better.

      thanks for the highlight bro!

      jfree

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  3. Hi Jeff,

    I could not understand the below?

    "I managed to purchase 1100 units of Keppel Corp @ $8.10 = $8910 (closed $8.18)???"

    Keppel corp is a good company. At $8.10 it's decent and I almost wanting to take a bite. I resisted hoping it tank further. "Dun ham tam me!". Now the news about kepland. Hmmm...

    By the way, kep corp O&M is not all about oil rigs (k Fels) which most people only know. Kep singmarine build vessels n kep shipyard converts FPSO n repair vessels. I normally go deeper by looking at who is the client giving the orders. Most of Kfels rig orders are non speculative, hence it is less risk expose. Fpso is production n have less elastic effect than rigs in relation to oil price.

    I expect kep singmarine n kep shipyard to bag some big orders this year..

    Also what is important is order invoice for 2015 n not order intake which is recognize in later years when vessel is delivered.

    My question is how long u intend to keep for it to rise 30%?





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  4. Jeff,

    Sorry my mistake... Forget about the odd lot now... Outdated me!! Knock on my own head

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    1. Hi Rolf Suey!

      Thank you for the comment!

      Ahh.. I didn't looked that in-depth actually, I bought Keppel Corp because of the drop on price due to the oil crisis currently. So my purchase of KC is based on the numerical figures I see and from my own assumption it should be due to the oil price drop. I did not research further.

      I will be keeping Keppel Corp in my portfolio as long as I can since it pays a good dividend, its a blue chip stock (less risk) and I'm positive that after privatising Keppel Land it would definitely have a bright growing further with that additional brick and mortar package as a whole.

      I felt like I've taken the Time Machine from movie "Back to The Future". I'm travelling back to year 2009 to purchase this stock but this time with better perks after the acquisition of Keppel Land. Which I didn't know any 'inside information' at the time I choose to purchase this, I guess I got lucky!

      I noted your guidance regarding who is the client giving orders and what type of order are they making at which period of time. I seriously didn't analyse that much when I purchase this stock, because I buy it based on my simple thinking and positive gut feel which may have caused me to overlook some important details.

      I don't know how long I would have to wait for the price to rise. but hopefully after the oil crisis starts to recover it would. Which I predict it would take 1 to 2 years for that to happen. Although thing may not happen as I envisioned and will have a long drag. I still can receive dividends from it which I am already contented, price rise is a waiting game but I am positive it will rise!

      Regards
      jfree

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  5. Hi Jeff,

    Haha...time machine is good. But if you have it, means others can have access to it also... so maybe got to queue in 2009...Also in 2009, the sentiments is not as easy as what we think to invest huge sum of money. It is always easy on paper as we thought...but investing huge sum of your fortune during crisis is not so easy when doing.

    For Kep Corp, you can refer to CW.....he is vested for 14 years.

    I had known Kep Corp for many years. Unfortunately it is also a cyclic business due to the O&M. Other than that, it is an excellent company....Strong management, strong structure, low staff turnover, deliveries to client on time, pay suppliers on time...... I am referring to the O&M segment only.

    It is the pride of Singapore in O&M industry internationally.

    I like to post their pictures in my blog during oil shows. Refer below... :) Huat for you. Hopefully I join you soonest.

    http://www.rolfsuey.com/2014/10/my-samba-trip-in-brazil.html#uds-search-results

    http://www.rolfsuey.com/2014/12/oil-price-slump-thoughts-prompted.html

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