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%