Monday, April 13, 2015

Latest action: further reduced Singapore Shipping and divested China Marchant Pacific Holding

The market is on a roll. Guess it will be a matter of time 3500 will be breached.

I further reduced my stake of Singapore Shipping for 33 cents. I sold 10 lots and is left with only 10 now.

As for China Merchant Pacific, I have divested completely.

It is not actually a easy decision for these 2 counters

I believe singapore shipping to be a dividend grower. Perhaps increasing dividend to 1.5 cents and then further to 2 cents when all the new brought ships bring in the charter income. 

Assume 2 cents dividends, it's a very decent 6% yield at current price and a good 8% yield at cost. 

I however decided to lock in 4 years worth of 2 cents dividends as profits.
It's ok if it go up further, in fact, the day high is 35 cents. I still have 10 lots :)

The same goes for CMPH, I was lucky to have already taken 1 year of dividend from it. Capital gain is another 4 years. If u tell me this bull run has legs for another 4 years, I personally do not buy it.

I am being opportunistic here. I hope to get back the counters at my original buying price within the next 1-2 years.

Anyway, what's goes up have to come down. We had it good, I am not sure how many good years we will have and how good they are. If STI go beyond 4000, think I will be banging my head but still happy :) 

I guess there is nothing wrong with taking profits. 

12 comments:

  1. Hi SI

    All I can say is congrats on the gains.

    You locked in those gains so never look back and regret later. Pass the risk and return to the buyer who bought from you at the later stage :)

    ReplyDelete
    Replies
    1. Hi B,

      Thanks. I remember CMPH is your core portfolio.

      I am very very risk averse now. think I will stay at the sideline now.

      Delete
    2. why are you risk adverse? what is wrong with this 2 business??

      Delete
    3. Kyith,

      The 2 business is sound. I did not see anything changing regarding their fundenmental.

      I am holding cash and distributing some profits to my emergency fund as well As standby for my mum hospitalization bill.

      I cannot really afford to wait out a bear. I cannot imagine when I need a big sum of money for my mum cheomo and a significant correction happen at the same time.

      Also, I am opportunistic. I think the bull has perhaps only 1-2 years of leg at most. In fact, when interešt rate start rising in September, I think market might think it as a excuse for correction.

      Not that I think yhese 2 companies have any problems managing interešt rate hike. But I hope to have more MOS AS I rebuild my portolio

      I have always wanted to trim port as STI go nearer to its peak, maybe if I have a big ear chest already, I would not have taken profits. I want to be able to take advantage of bear. If I get bullied by bull, I just have to wait

      Delete
  2. hi SI
    ask u.if you, will you sell singtel (paper gain 23%), ocbc( 10.5%) and UOI(9.5%)

    well, total gain if sell all, can get 18k. should i sell?

    wonder i sell then can i get back so low price again? in dilemma....

    very tempted to sell.

    ReplyDelete
    Replies
    1. Yeh,
      My situation as I explained to kyith, is very different from yours.

      I foresee high expenses going forward, in particular my mum outpatient bill. I am also trying for my second child ...

      So, I cannOT afford to lose. Having a chance to take 20%-30 % profits is good enough for me.

      If I am like u, with spare cash, and no dependants, I will most prob just hold the SSC and CMPH ...

      Maybe sell only when it is over- valued like with yield of CMPH BELOW 5%

      As for your counters, I have not studied them so no comments...

      Delete
  3. Hey SI,

    I think you made a good call, pocketing 4 years of income as capital gains is a good respectable win! I think it's not psychologically easy selling winning positions. I am also considering easing up on some of my positions as well, but they haven't run up as much as I would like yet!

    ReplyDelete
    Replies
    1. Thanks GMGH,

      Only time will tell. I am still holding to lippo mall losses. But it's ok. Just collect the dividneds as pain killer.

      Maybe the rest will run. But like B says, I am ok with passing ghe risk and returns to whoever brought it from me

      Delete
  4. hi SI
    well, Semb corp and STE are rallying, are you cashing out?

    ReplyDelete
    Replies
    1. Nope for ST and Sembcorp.

      Although both are in the green, I just bought them for less than 6 months, and if I include the average down buy, it's less than 3 months. I believe more time is needed for them to show value.

      Also, I have sold them a month ago to reduce risk. So now I am
      Left with only 1 Lot each. And with a comfortable cash holding, I think I can wait for these 2. If it goes higher, I am happy. Lower, I can sleep well.

      Delete
    2. i have quite a bit of STE and semb corp.
      will probably sell STE if can go up to 3.8 or higher...STE chart looks bullish
      as for semb corp. hope to sell above 5:)

      Delete
  5. HI SI,

    Congrats on your profits. Because it is a Chinese company, I hesitated too long on CMPH and missed the boat.

    Cheers,
    Farmer.

    ReplyDelete