Wednesday, 13 May 2015

Starburst just went burst today....

It was pretty ironic. 

The stock that i wanted to buy but missed out, IPS Securex, ran up like crazy from 49c and the one that i managed to get, Starburst, went down the gutters after announcing a very poor set of Q1 results and now i am sitting on a unrealised loss of 3.8k within one day... ouch!! The stock chart looked super ugly

This is the perils of investing in small cap stocks with lumpy earnings..... Although the Company took great pains to explain that Q2 will get some revenue but i am not sure if it will be as good as Q2 last year...

I am so so so so upset with myself.... :-( 

I will need to re-look at how i select stocks for long term investing but first i need to find the time....

Saturday, 9 May 2015

Starburst Holdings Limited



I added 50,000 lots of Starburst Holdings to my SRS account on Thursday at $0.555 each. I first covered this Company when it IPO last year and my article is here.

I will not spend too much time writing about the Company as you can find the annual report here.

The Company specializes in the design and engineering of fire-arms training facilities in SEA and the Middle East. The Company has been growing rapidly for the last three years and net profit hits S$13.159m in FY2014.

The Company has been generating impressive returns for its shareholders as seen by the ROE and ROA


and more importantly, the Company has little debt on its balance sheet and trading at a valuation of around 9.4x PE


The shares are quite tightly controlled with only 20% free float and each founder holding 40% of the Company.


If you want some out-dated research report, DBS and CIMB issued reports in Sep and Aug last year. The links are here and here respectively. While i like the uniqueness of this Company, my concerns will be the lumpiness of the contracts and it is good that they are getting recurring revenue now from range maintenance etc.

This shares hardly trades so if you want to cut loss and get out, it can be an issue. This is a medium term hold for me of about 2-3 years. Hopefully the Company will not disappoint and continues to fire at all cylinders.

Happy firing!


SRS Portfolio - 30 Apr 2015



There is nothing much to blog about about my portfolio as of end of April. I have been very busy with work but having said that, I added a position last Thursday. I will blog about it in my next post. 

UMS Holdings Limited

UMS holdings went XD on May 5 and the dividend of 3 cents will be paid on May 28. My shareholding of 50,000 shares will receive a dividend of $1,500. This definitely feels more substantial than the one coming from Sembcorp! 

Sembcorp Industries Limited 

Sembcorp went XD on April 23 and the final dividend of 11 cents will be paid out on May 18. Based on my wife's shareholding of 2,500 shares, that will translate into a dividend of $275. That sounds quite pathetic. hahaha. If i include the amount paid out during the interim, the yield will be around 3.95%. Maybe i should have 'created' my own dividend by selling at $4.80. lol....

The Company announced a poor set of Q1 results on May 7. The presentation slides are here. The Q1 net profit was down a whooping 23 % due to intense competition in Singapore. The Q1 EPS is 7.8 cents. Net Asset Value stands at $3.31. The outlook for the remaining 2015 continues to be challenging. While I don't like the outlook and smell of things, the share price may have already priced in the poor results. I will hold it for now unless the share price crashed below the major support of $4.05.

Happy SRSing. ^_^  Still have quite a bit of cash to deploy!..... 


Thursday, 30 April 2015

Random thoughts for April

It has been a while that I have the luxury to sit down and blog. I have been on the road. Many things happened this month. 

A friend passed away

My friend who was around my age passed away this month, leaving behind his wife and young child. I was glad that I managed to see him one last time before I flew off. He has been in the hospice and suffering for a while. 

When I received news that he has passed away, I was filled with both sadness and relief for him. Life is short. Treasure your loved ones. 

A responsible family man
Although he died young, he had been a responsible man. He not only paid off the debt on his home, he has also managed to build up a portfolio of stocks that generates passive income for his family. This is what I call a responsible family man. 

I spoke to a very successful fund manager recently. He said he only recruits a family man for his team. When asked why, he said, "if a man takes good care of his family, he is a responsible person and you can rely on him to take good care of your investments too." 

Here you go. A little inspiration for you to start taking good care of your family. 

Private investments 

I have been making investments in private companies whenever the right opportunity arises. It was interesting that my IPO blog was recently the source of my upcoming investment into a start up company. This will likely be my 4th investment into an unlisted company. I will dedicate a blog post to it in the coming days and you might be able to benefit from what that company is doing in that post. 

Public markets

I haven't been following the public market too closely. Really getting rusty but I am just too occupied with a few projects. I will need to buy stocks for my SRS accounts. Those that I can buy and then throw inside kind and look at it once in a long while.... sigh... 

Time is indeed one of the most previous commodity. Where have the last 4 months gone to?

Sunday, 12 April 2015

SRS Portfolio - 31 March 2015


No other transactions in March for my SRS account other than the 50 lots of UMS Holdings mentioned in earlier posts.

I have been very busy with work so haven't had much time to think about what new positions to add.  I still have quite a bit of cash to deploy here. 


Similarly for my wife's SRS account. No new transaction after Sembcorp as the cash is fully deployed. I may consider depositing $12,750 into her account in April. 

Keppel DC REIT announced its maiden results last week and it was better than forecasted in the prospectus. It should still be well supported for now. 

So long for now. Happy SRSing. 

Sunday, 15 March 2015

SRS portfolio - 28 Feb 2015

Dividend

I have nothing much to report for the month of Feb except a $130 distribution from Keppel REIT which I have since divested. At the end of Feb, I am holding $132,459 of cash.

Feb statement


March purchases

I have already shared with you my March purchase of 50,000 shares of UMS holdings which is still holding up pretty well despite the ongoing market corrections. 

Wifey's SRS

I was waiting for my wife's SRS Feb statement and before I can even asked her about it.... the statement has already "gone" into the thrash bin. 

There is no change to her SRS account. Still holding 15,000 shares of Keppel DC REIT and the March purchase of 2,500 of Sembcorp Industries

Happy SRSing

Tuesday, 3 March 2015

Two new positions for my SRS fund

I initiated two positions for my SRS portfolio today. 

Sembcorp Industries

I have been contemplating this counter since last week and was weighing the probability whether oil prices will "crash" further with Citi predicting it will fall to the $30 region

I bought 2,500 shares at $4.28 eventually and will spare you the details of how the price ran away from my various price queues ^_^ 

The key reasons for buying:

  • reasonable valuation of less than 10x PE Mulitple
  • stable utilities business giving a decent yield of ~3.6%
  • bet that oil prices have stabilized
Given its significant exposure to Sembcorp Marine, any further crash in oil prices will be disastrous. The picture below shows the various multiples at the point of acquisition (for my future reference)



With many STI Components stocks trading at high PE multiples, oil-related counters seemed like having a "fire sale" right now. 

As in all my investments, the cut loss for Sembcorp Industries is around $4 and that is likely to happen if oil prices crash below $50. My "target" for this investment is around $5.

With the above purchase, I have "maxed" out my wife's SRS account for now. 

UMS Holdings

I bought 50,000 shares at $0.52 today. This is my second time investing in this counter but it is a much bigger position than when I first bought it.

This is more of a yield play that hopefully can give me a stable and recurring income for years to come. I am more than happy if share price stays stagnant but delivers the dividend every quarter. 

Reasons for buying:

  • Company is debt free and generates high cash flow
  • Usually pays 1c dividend from Q1-Q3 and a higher dividend in Q4
  • Business seems to be recovering, especially in the semiconductor area

Again the PE is not overly expensive at below 10x PE. I haven't thought of a cut loss point yet but will be very concerned if it drop below $0.48.

So long for now. 

Happy SRSing.








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