Wednesday, February 5, 2020

Annual Report 2019 Silly INC

Chairman message:

Dear readers, it has been a while. 2020 has turned out quite unexpectedly. When your truly is preparing the CNY just more than a week ago, he could not have expected how serious the Wuhan virus could become. Nonetheless, we keep our steel and purchase several counters that were on our radar and hit our alert price. We will discuss more of that later in our future plans to 2020. In 2019, there were many firsts. We start investing using CPF, SRS and for the first time, enjoyed the rights to subscribe to Areit. We apologize to the lack of data for year 2018 as the management team went into depression mode.

Operation Review

Dividends received:
2016 - $3849
2017 - $2200
2018 --
2019 - $2375

Vested amount is 66K in cash account, SRS 9.3K and CPF 5.7K

2019 is a year of accumulation but our company is not chasing after yield alone but looking also at earning growth. We added Capitaland. Silverlake is a tale of dramatic up and down. It is the single biggest holding and at one point is sitting on handsome capital gains of 20% for our average price 47 cents, but ended up being the biggest loser now.

We were lucky to have reduced our size when it is near its peak of 56 cents, but are still nursing capital loss of more than 20% now for our existing holding

We are monitoring it closely for its upcoming quarter results to decide what to do with it.

Trading 
2016: Nil
2017: $4700
2018: --
2019: $1600

Trading gains came from EHT and Netlink. We had wanted to keep Netlink for the long term but the quarter results disappointed. On hindsight, the use of borrowing to supplement the distribution did not seem to bother investors.

AUM
2016: 85K, 57K vested in equity and remaining in cash
2017: 106K, 44 K vested in equity and remaining in cash
2018: ----
2019: 170K, 81K vested in equity and remaining in cash

We are still very conservative on the market and is holding a lot of cash. In order of size of counters in portfolio by cost, we have the following companies in the vested portfolio:

1) Silverlake
2) Ascendas REIT
3) ST engineering
4) SIA engineering
5) Hong Kong Land
6) Sembcorp industries
7) MIT
8) First REIT
9) Singpost
10) Capitaland
11) QAF
12) Koufu
13) Raffles Medical
13) Singapore Shipping
14) Pan united

Coporate actions since start of 2020

The Wuhan Virus has allowed the company to pick up Koufu, HKD land and QAF. It is early days and the company is prepared to double down on these investments if necessary.

As of 5 Feb, Vest equity is still in green with unrealised profits of 6%


6 comments:

  1. Hi SI

    I am also bleeding on the SLA counter but I am still quite optimistic on the fundamnetals of the company (hope I am not delusional). I like your choice of stocks with clean balance sheets.

    Hope that we make the right picks and achieve a good result at the end of this year. Huat ah!

    ReplyDelete
    Replies
    1. Hi intj,happy new year and huat to u too. hmmm SLA? I need to look at that. Singapore listed?

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    2. Silvelake axis...same counter as you. If you have any interesting ideas to discuss, feel free to drop me an email ;)

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    3. Hahahahah I see I see.
      I think Singapore land authority.

      Personally, I find the market for banking system to be Hugh. Given the digitisation of banking and cashless wallets etc.

      SLA has also proven to be able to clinch orders, the big question mark really is why Goh inject 3 assets that did not result in top line improvement.

      Why are they increasing borrowing when there is so much cash.

      The recognition of rev can be lumpy and I am willing to wait to see full year results, but so far their corporate actions are very disappointing. They could well improve dividends instead of buying any more companies

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  2. One more data point to show Illusion of wealth in the stock market if we can't realize it in time to keep it safe from taken back. Investing is a tough game too

    ReplyDelete
    Replies
    1. True. cW.

      But no regrets. Part and parcel of investing. The quarter report will give more info of what to do ...

      Sometimes price stay low for a long period of time.

      We need to be defensive at times, but we need to be careful of permanent loss. I hardly think SLA is a fraud or that the business wil be loss making anytime soon

      Delete