Friday, January 15, 2016

Random thoughts: Annual report 2015 Sillyinvestor INc

Warning: long post! LOL
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Statement from Chairman:

Dear readers, this is the maiden annual report from Sillyinvestor Inc. 2015 has been a good year. The company has very humble beginning and manage a recurring dividends $2718 for 2015. This amount generated from a base of $67420 as of 31Dec mean a yield of 4%. 

This yield is better than the recent Singapore Bonds. 

More importantly, the company make a opportunistic trading gain of $3992.

Taken with the recurring dividend, it yields almost 10%. It would have put some funds into shame. However trading gains is highly volatile and a wild card, the company does not expect such results to recur. 

Outlook:
2016 has started off with a Big Bang! It created a black hole and It is rather dark and gloomy now. The company vested position has now increased to $75340. With this bigger base, the company expect recurring dividends to increase, providing more stability to earnings. However, due to poor market sentiments, the portfolio is only worth $65470, a loss of 13% in portfolio value if the entire portfolio is liquidated now. However, as stamp collector as our aspiration, and a target recurring yield of 6% as our motivation, we see the current environment as an opportunity. However, the company will Never leverage to build up the base, neither will it dips into the CPF OA unless market gives an incredible price. 

We might have made a wrong call and enter the market too early, expending  our ammo. But given the small base, the company believe in building a base as and when it deem fit. Our director, Mike, will contribute to our fund every year after settling his family's comfort and security. So we are not really sitting duck. 

Appreciation to directors and readers:
Sillyinvestor inc like to show its appreciation to its directors. Greenrookie who is a forummer in valuebuddies and Nextinsight, sourcing for investment ideas for the company. Our executive director, Mike, who is also the founder of the company, and a veteran in the government sector, providing fund injection to the company every year. As a corporate Governance disclosure, Mike is a hen-pecked husband and might not provide annual injection, and its parent company is Mike's Wifey Pte Ltd

As for readers, to show appreciation to your support, Sillyinvestor Inc will propose a ... Hey! You are reader, not shareholder, I receive not a single cent from you! So instead of dividends, I give you my electronic hug and kisses, I love all of you! World peace. I need you for my Ad rev which I will explained in operation review segment.

Operation Review:

Dividends chasing
In 2015, we bought into accordia trust and increase positions in sembcorp industries and ST engineering. Sembcorp Industries is the biggest drag in our portfolio value. Although price is much lower now, we do not intent to add into our position to prevent over-exposure risk. But we never say "never", and might nimble when our resources permit.

Accordia Trust really lived up to the Chinese Proverb "天有不测之风云”,bad weather has caused its latest quarter earning to fall and affect investors' sentiments. We believed its growth prospect is intact with its parent dumping   Its assets into this trust sooner or later. Also, we need more time to ascertain if the company is affected by weather or faced more fundamental problem. We will give Accordia Trust the benefit of doubts. 

Prior to Black Monday, was a time we also bought back Ascendas REIT, and Mapletree Industrial Trust as well as CM pacific. With the exception of CM pacific, we are happy that the value of the 2 industrial trusts are holding up well. 

Lee Metals, LMIR and Singshipping are so far giving out dividends as expected.

We also newly invested into Cogent, we have not receive any dividends from the company but we expect at least 2 cents dividneds annually. We hope we are not wrong in our decision. 

Trading:
Dividends chasing and trading is not mutually exclusive. We will readily take 3-4 years of dividends off the table and hold cash if we think the market is giving too good a valuation to the companies we hold.

We sold CM pacific, Ascendas REIT and Sing Shipping for 4, 3 and 7 years of dividends. In hindsight, we are too impatient with Venture, and sold it cheap with only 2.5 years dividends. We bought back Venture in 2016 at a higher price. 

In 2015, Siilyinvestor inc also made an speculative trade into FST, the company believed the company is a beneficiary of the current oil glut situation, as the company has a large portion of revenue generated from Tankers. Tankers rate is in roll in 2015 until it is showing signs of slowdown, but nonetheless still profitable. Also the low oil price means the cost of bunker is low for company. Sillyinvestor inc is in the opinon the company could resume dividend payout later this year. "Could" is not a doubt but company "might not". It is a speculative position because the we do not intent to hold this company for
More than 1 year if there is no new positive development. Sillyinvestor inc will cut loss if no clarity of dividends is given in its annual report. 

We also bought into Gold for the first time. It is a balance of portfolio of sorts and not really for trading, but since it is not generating any dividends, we will park it under trading. 

Online Ad revenue:
This segment is  insignificant. We generate an income of $65 for 2015. 
We believed Adsense will terminate our account sooner or later before we can milk it. 

Social Coporate Responsibility:

With our humble fitting, we contribute monthly to World vision, SASCO and Community Chest, in order of size of donations with Community Chest Contribution insignificant. We adopted 2 children from world Vision. It is our hope that as we grow in stature, we can increase contribution to charity. 

Financial statement:
Our company does not have the resources to employ an accountant. So right now, everything is self-learned and agar agar du.

But below is our financial highlight as of 14 January 2015



Investor relationship:
If you are reading till now, you are my pal. My contact info is on this blog, but seriously, I am not sure why you would want to contact me. 

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Footnote: 
Feeling rather pleased with myself after writing this. Lol

9 comments:

  1. Well. I have both semb corp and Kepple corp.
    Both quite huge holding.
    One is about 20% while another is 5%.

    My price is also quite high. 3.6 and 6.5

    These 2 are big headache to me.
    Used to under pillow stock. Now is big headache. Luckily I didn't lose sleep

    ReplyDelete
    Replies
    1. Hi Yeh,

      As I said, diversify. Don't be over invested, also there are various dimensions in investment, not need to always look at port valie

      Delete
    2. today i funny thought in my mind.
      let's assume price stagnant at 2.5, then dividend 3% based on utilities.
      then like this, i have to hold about 20 years to get back my losses.

      i hope that i can live long enough to see my capital earn back.

      a bit pessimistic:(

      Delete
  2. Hi SI

    I really enjoyed your annual report until the end. It was very nicely written and humorous. I think this shows that you slept just well with the down market ;)

    ReplyDelete
    Replies
    1. HI B,
      Glad you like it.
      Sleep well now, another 30% down, then I don't know.

      Seldom have the mood to write nonsense like this, think i am getting mojo back

      Delete
  3. Sillyinvestor,

    Nicely written :)

    Glad you are having fun blogging!

    Never let our creativity go to waste ;)

    ReplyDelete
    Replies
    1. SMOL,

      Just wondering how come my online pal never come show support!

      Thank you!

      The market is becoming your playground now, may you huat!

      Delete
    2. Sillyinvestor,

      Low expectations.

      I working on no expectations ;)

      If I go holidays no response how?

      The most important person is you. Enjoy you ;)

      Delete
    3. LOL SMOL,

      Maybe will go on a depression. Hahaha
      A... Come on la, later people think I gay, got support good la, dun have also too bad lor.

      Actually think the currency market is a bit grey now. Hope The set up u are waiting for appear soon LOL

      Delete