Friday, January 13, 2017

Random thoughts: Annual Report 2016 Sillyinvestor Inc

Chairman statement: 
Dear readers, the theme in 2016 is surviving in a volatile world. There are 2 shocker news: first Brexit and next Trump's election. But the market survived and blossom.

We are proud to announce we have grow from strength to strength. The company manage a dividend of $3849 in 2016, from a capital base of about $57000, giving a yield of about 6.5%. This is a 2.5% improvement in yield and 40% increase in dividend.

However, trading profits is flat or negligible. The small profits in 1H was gone as we increase cash by taking a loss of Lippomall.

However, as compared to a year ago, where the vested amount is 15% lower than market value, we now have a equity portfolio that is 3% in the green. As mentioned in 1H intern report, we are going to include cash in the calculation of our portfolio. Hence the total portfolio size increase 13% to 85K, where 35 K is cash.

As a result, there is a drag in total returns over total asset, which is only an return of 4.4%. The return of STI's dividend yield better at 6% with the STI asset value flat. While we did better and improve our performance compared to a year ago, our performance is sub-par and we will continue to improve ourselves.

Outlook:
It is the management's wish to be conservative in the years ahead. We do not buy Trumpocomics. We believe there are many perilous moments in the calendar 2017. We might further increase cash holding beyond the optimal 50% if the price is right for us to further liquid our portfolio. Beyond heightened political tensions, possible trade conflicts, and terrorist risks, the fate of Euro is a question mark if we look at the coming elections of major Euro countries. Of course, we do not pretend to know how the market will react to these event, just like the market rallied instead of falling post-Brexit and Post-Trump.

The sponsor and founder of company, greenrookie is confident of cashflow, pending unforeseen circumstances, and has pledge to continue with cash injection in 2017. As and when it happens, the company look forward to manage the expanded portfolio but will conservative in the deployment of cash into equity.

Appreciation to readers:
This is a year of readers' activism. The management met up with several bloggers and exchange various investment views. Hence, the management has decided to declare a maiden "coffee treat" to future meet-up, if any. Although management is on course, he might be able to do Wednesday or Friday lunch at the Jurong area from 1230 - 2 p.m. LOL.

Operation review:

Dividend chasing:
While the management's main focus is still dividends, management will not hesitate to sell off profitable companies. The worst performing counter is still Sembcorp Industries followed by Lee metals. The best performing counter is Venture.

CM pacific is privatised, and we added YZJ and SIngpost to our portfolio. We view both counters to be company with growth potential for different reasons.

Trading:
We sold M1, Lippomall trust, Sembcorp Industries, ST engineering and Silverlake axis for varying loss and the gain came solely from Cogent, excluding the privatisation profits of CM pacific.

Online Advertisement:
It finally crosses the threshold of $150. Company see this segment as negligible and might stop reporting its numbers. Although readership has somewhat increased compared to a year ago, the company see no future growth drivers in this area since the management after much deliberation has decided to reject attempts at affiliation links.

CSR:
There is no difference to the beneficiaries we are adopting and the sum donated remained the same. With the change in credit card, there might be some temporary disruption to Sasco

Financial statement:


Footnote:
Nil


23 comments:

  1. Good yield of 6.5%. Can invest in your company or not?

    ReplyDelete
    Replies
    1. Hmm Passive Income Farmer,

      Interesting, given your blue chip income status, how about a total buyout of my company? LOL

      Some of the companies Are sold after the dividends are paid. So I think taking total 4.4% return of assets will be more accurate. So its quite lousy la. Think you did much better lor. Can I invest in yours? Coffee?

      LOL

      Delete
    2. Haha. Your portfolio is too big for my bit-by-bit strategy.

      Ya. Can find time to have coffee. Cheers.

      Delete
    3. On. Will look at your blog to find your contact and jio u when opportunity present itself.

      Btw, u are man of leisure? Self- employed or working full time?

      Delete
    4. I am a rat running the maze everyday.

      Delete
    5. Hi fellow rat!

      I am a rat on a 17 week training ( it's a break for me) before that I am running on treadmill even as I eat.

      Delete
    6. Haha. Last time I slept on the treadmill too (answering emails at night). But nowadays I leave my work computer in my office.

      Delete
    7. Good good! We are the battle harden rats!

      Let the FIRE laugh at me. I will persevere and run LOL. May u run less and run as a option soon

      Delete
  2. Nice one. Enjoyed your chairman's statement.
    And who is the CEO of your Sillyinvestor Inc? Got any CFO too?

    ReplyDelete
    Replies
    1. Tacomb,

      As we are a small outfit, the chairman and CEO are the same person. We have no CFO.

      U do bono service muhahahahah ???

      How are u getting on man? Is your project moving on nicely? Data analytics is big business now, especially if it can be achieve with reduced man hours

      Delete
    2. What? You don't have a Chief Family Officer? I guess your wife might beg to differ.

      Pro Bono work? No, I only do Pro Bone work. And that bone has to be of that juicy kind with lots of meat left. What to do? I am a hungry dog.

      Yes, that project is moving on and we are bringing nice productivity gains to the Construction Sector. Would not mind it to move on even faster though.

      Delete
    3. Yes u are right. The chief family officer having her own difficulty at work with a change of environment.

      That's great! A great start to the year. It will pick up and u will be even more busy

      Delete
  3. Enjoyed reading your annual report, mr CEO. Nice!

    Small suggestion: Perhaps you can incorporate dividend returns in your financial statement for a view on total returns?

    ReplyDelete
    Replies
    1. Dan O Hmm... the dividend returns is given lei?

      Oh u mean individual segmented one? Lei chey. Actually I just took the SGX whole year statement and sum up the dividends

      Delete
  4. Hahaha ! This good one !! No Trumpoconomic or Abenomic ! How about Putinomics or Jinpingnomics ?
    Cheers ! Look forward to attend your AGM,,, :-)

    ReplyDelete
    Replies
    1. Hi STE,

      AGM need auditor sign off account lei. I dun have. I just apply lifelong extension of AGM and is has been granted. Lol

      But reader activism is to be encouraged ..

      Delete
  5. My dividend yield is only 3.6%

    ReplyDelete
    Replies
    1. Wa yeh...

      Dun make me angry lei... your base how big LOL ... dun bluff me lei

      Enjoy the roaster year! Por por gey!!

      Delete
    2. I back to work: trying hard. But working keep my mind occupied and so far coping well! Now I feel 活着真好,可以工作真好!

      Delete
    3. Hi, Yeh.

      That's the spirit! I kinda of miss teaching too. But decided to take this time to really read and think about my teaching since otherwise, I could just Think and Hoot ...

      My health has several red lights flagging ... while nothing compared to the situation u are in. I just tell myself to carry on with what we do as long as I can ... either physically or mentally ... I can't really keep my mouth away from rubbish thou... lol

      U know, when I think that my health might be falling me earlier than usual, I have this selfish thought that at least I am managing it when I am still young, and I am rehearsing for death earlier so I am more prepared ... 20 years is enough for my son to be independent ... and fulfilled my duties as a son or in-law

      If I could be the pillar, I will be, but if I need support I take it ... life goes on

      Delete
    4. Yes This year a bit late to apply part time.

      Next year I am planning to do part time only. With my dividend hope I can survive.

      Delete
  6. Hi Chairman,

    This year got give ezlink card or nets flashcard bo? Don't be stingy :)

    ReplyDelete
  7. Hi hi LP,

    For u, anything. I can be your driver too :)

    ReplyDelete