Performance of STI ETF (16.5% loss for 1H08)
Mid-Yr 2008 closing price (30th June): $3.030
Dividends: $0.06
2007 closing price (31st Dec): $3.699 (adjusted for 1 to 10 stock split on 10th Jan'08)
Performance of Chan Partnership: (11% loss for 1H08) (37% overall gain)
Comment: Sold off the speculative stock ChinaACorp. Risks are high so I dare not put in a large amount. Speculating will never happen again. Never! See what it has done to me. HAHA!
1) SBSTransit (4.9% loss)
Review: SBSTransit have dropped to their 52weeks low due to high oil prices. A blue chip stock trading at 13-14 PER, cheap in my opinion. Public transport pie may actually grow bigger as drivers find fuel price increase and ownership of car hard to cope. Foresee revenue increase as they will raise prices again in the near future. It is not easy to satisfy both shareholders and commuters.
2) Kingsmen (120.9% gain)
Bought: $6,000
Value at 30th Jun'08: $12,300 -$45.62(trading fee) +$1000(total dividends)= $13,254.38
Review: Business fundamentals still intact. Looking forward to listing in Mainboard. Stock definitely undervalued at $0.41. The discount to fair value might help to increase number of shareholders despite the 2 to 3 stock split. Having at least 1000 shareholders is one of the requirements to go to Mainboard. Fair value of Kingsmen $0.60. Foresee more contracts coming from IR.
Total value at 31st Dec'07: $16,810.31+ $6,900= $23,710.31(adjusted for capital injection to compare against 2 different periods)
Total value at 30th Jun'08: $21,102.68
Overall gain: $21,102.68/$15,400(total injected capital)=1.37=37%
Summary
In the first half of the year STI ETF loss 16.5% in value and the Chan Partnership loss 11% in value. I beat the market by 5.5%. Not impressive because my goal is to beat the market by 10% every year. Read my earlier portfolio post on yardstick. However, I am not bogged down by short term results.
Low returns are attributed to weak market sentiments due to high oil prices, inflation and US sub-prime issues. An opportunity for value investors to buy cheap.
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." Warren Buffett
"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it." Warren Buffett
Mid-Yr 2008 closing price (30th June): $3.030
Dividends: $0.06
2007 closing price (31st Dec): $3.699 (adjusted for 1 to 10 stock split on 10th Jan'08)
Performance of Chan Partnership: (11% loss for 1H08) (37% overall gain)
Sold ChinaACorp: $2,455.93(initial capital-trading fee) -$1,168.82(47.6% loss)= $1,287.11
Comment: Sold off the speculative stock ChinaACorp. Risks are high so I dare not put in a large amount. Speculating will never happen again. Never! See what it has done to me. HAHA!
1) SBSTransit (4.9% loss)
Bought: $6,900 (capital injection)
Value at 30th Jun'08: $6,510- $46.31(trading fee) +$97.50(dividends)= $6,561.19
Value at 30th Jun'08: $6,510- $46.31(trading fee) +$97.50(dividends)= $6,561.19
Review: SBSTransit have dropped to their 52weeks low due to high oil prices. A blue chip stock trading at 13-14 PER, cheap in my opinion. Public transport pie may actually grow bigger as drivers find fuel price increase and ownership of car hard to cope. Foresee revenue increase as they will raise prices again in the near future. It is not easy to satisfy both shareholders and commuters.
2) Kingsmen (120.9% gain)
Bought: $6,000
Value at 30th Jun'08: $12,300 -$45.62(trading fee) +$1000(total dividends)= $13,254.38
Review: Business fundamentals still intact. Looking forward to listing in Mainboard. Stock definitely undervalued at $0.41. The discount to fair value might help to increase number of shareholders despite the 2 to 3 stock split. Having at least 1000 shareholders is one of the requirements to go to Mainboard. Fair value of Kingsmen $0.60. Foresee more contracts coming from IR.
Total value at 31st Dec'07: $16,810.31+ $6,900= $23,710.31(adjusted for capital injection to compare against 2 different periods)
Total value at 30th Jun'08: $21,102.68
Overall gain: $21,102.68/$15,400(total injected capital)=1.37=37%
Summary
In the first half of the year STI ETF loss 16.5% in value and the Chan Partnership loss 11% in value. I beat the market by 5.5%. Not impressive because my goal is to beat the market by 10% every year. Read my earlier portfolio post on yardstick. However, I am not bogged down by short term results.
Low returns are attributed to weak market sentiments due to high oil prices, inflation and US sub-prime issues. An opportunity for value investors to buy cheap.
"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." Warren Buffett
"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it." Warren Buffett
4 comments:
hi i have read your previous post, and i understand the rational behind buying kingsmen, but can i know how did u FIRST came to notice kingsmen?
And how did u manage 120.9% increase? U mean u bought kingsmen at a price of approx. 0.175 or thereabout?
Hi anon,
Hope you find my blog useful, was too lazy to update.
My dad had dealings with Kingsmen, they helped him design his shop. Their design was very good as it attracted many customers. It impressed me as their design and renovation works were quick, and of very high quality. Then I went to look at their financials. I bought it because I like the management and the price was undervalued in my opinion.
I don't like to talk about price as I want my readers to think of stocks as businesses. Before the stock split, I bought it at 30cents.
Notice the companies around you and you might find some good bargains. I think it is better than stock screenings. Hope this helps.
Cheers!
Cheng :D
Before awarding the project to Kingsmen, which other companies had your dad looked into? If you could present a short writeup, I am sure that adds plenty of value to the understanding of Kingsmen business/industry.
Solid Analysis!
however, your mentality about beating the market makes me feel that you are more of a speculator than an investor.
Post a Comment