$$$ KPO and CZM $$$

Tuesday, July 14, 2020

Bye Sheng Siong! Hi SATS!

We decided to sell all our Sheng Siong shares (18,000 units) at $1.64 today and it has been our top/best investment after all these years.


After holding for about 1358 days (~3.7 years) with an average price of $0.907, we have almost doubled our capital with an absolute return of 94.54% and an annualized return of 19.58%.

We felt that Sheng Siong is currently trading at a pretty high valuation and the market seems to be overly optimistic. Sheng Siong Q1 financial report has been very impressive, almost doubling its profit/EPS when compared against the same period last year.


However, when we looked at the breakdown, the increase in revenue is mostly due to the "hoarding" effect whenever PM Lee gave his speeches. lol.


Anyway, if we were to look at the last few years, Sheng Siong has been trading at an average/median PE of 20-21. Based on the current price and its average/median PE, the market is expecting its EPS for 2020 to increase by 55% to 7.86 cents as compared to 5.04 cents last year. It just didn't look realistic when we forecast it, hence it felt overvalued when we were looking at it.

Will it goes higher? Maybe, just look at Tesla!

We have also decided to redeploy a bit of the cash from the sale of Sheng Siong to buy SATS (4,000 units) at $2.84. SATS came tumbling down from its high of $5+ due to COVID-19 where it even reported losses for the last quarter (ending 31 March 2020). The management was also being very prudent by cutting dividends by ~68%! We decided to buy it as we see this as an excellent opportunity to accumulate a good business (it is essentially a monopoly in Singapore) and it is a recovery play. I can see it returning to $5 once a vaccine is found but can't say the same for SIA especially after its right issues.


Similarly, I computed its average/median PE which is around 19-20. Based on the current price and its average/median PE, the market is expecting its EPS to decrease to 13.9 cents. In my opinion, this is still quite optimistic as its Q1 losses should be a lot more when travel restriction is placed around the world compared to the last quarter when it was just beginning.


In addition, there were multiple share buy back around ~$2.90 which could be a sign that the company is undervalued. You can read more about share buy back here - Why Would a Company Buy Back Its Own Shares?

Unfortunately, SATS has dropped quarterly reporting so we can only wait till around October for its half year financial statement to get a better overview of its business.

What's the worst that can happen? Getting kick out of STI lor like SPH. lol.

You can take a look at the above spreadsheet here.

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Friday, July 10, 2020

StashAway - June 2020

Today is polling day and I'm sure we have all voted wisely :) I'm sure tonight is going to be a long night with the extended voting hours. Back to our monthly update, StashAway performance is still pretty impressive where all of them have recovered significantly from the March low and they have >20% time-weighted return now.

Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%
KPO SRS - StashAway Risk Index 36%
CZM SRS - StashAway Risk Index 14%

1. PORTFOLIO SUMMARY (as of the last day of the month)

KPO

CZM

Based on the statement (30 June 2020), our total investment is ‭$39,931.79! KPO gains $892.85 and CZM gains $‭‭‭49.65 for the month.

As of 10 July 2020, these are our portfolio performance:


KPO and CZM Cash - StashAway Risk Index 22%: $‭29,113.98 (26.99% - Capital: $24,500)


KPO SRS - StashAway Risk Index 36%: $7,604.97 (25.55% - Capital: $6,650)


CZM SRS - StashAway Risk Index 14%: $4,166.76 (22.49% - Capital: $3,750)

From here, you can see the difference in volatility/losses based on both our SRS accounts which started around the same time but with vastly different risk.

2. PORTFOLIO DETAILS 
Note that these are reported in USD.

KPO and CZM Cash - StashAway Risk Index 22%

KPO SRS - StashAway Risk Index 36%

CZM SRS - StashAway Risk Index 14%

3. FEE CALCULATIONS


I referred StashAway to 2 friends. Hence, the fee stated is based on the monthly-average assets SGD $18,973.94 x 0.8% / 366 days * 30 days = $12.44. Otheriwse, it would have been SGD ($25,000.00 x 0.8% + $8,973.94 x 0.7%) / 366 days * 30 days = $21.54.


The fee stated is based on the monthly-average assets SGD $4,036.18 x 0.8% / 366 days * 30 days = $2.65.

StocksCafe


Evan (founder of StocksCafe) made an improvement where one can now benchmark their portfolio against multiple indexes/ETFs. Looking at the time-weighted return (5.14%) for this year, we can see that StashAway Risk Index 22% is outperforming the STI ETF, SPY, and VT (including fees). If we compare across the years, StashAway's portfolio is winning by a huge margin (27.59%) except losing to SPY (32.37%). In addition, it has a lower max drawdown and lower volatility.

Which is the best? Only time will tell :)

Anyway, if you are interested in signing up for StashAway, do use our referral link - KPO and CZM Referral Link. You will get $10,000 free management fees for 6 months and we will get $16!

If you want to extract those transactions information from StashAway, do take a look at this article - StashAway Transactions Parser.

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
StashAway - January 2020 - $31,742.42
StashAway - February 2020 - $31,499.69‬
StashAway - March 2020 - $30,934.95‬
StashAway - April 2020 - ‭$34,830.73‬
StashAway - May 2020 - $37,298.09‬
- StashAway - June 2020 - $39,931.79

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Wednesday, July 8, 2020

Syfe - June 2020

Syfe launched Equity100 and you can read more about it here. I don't think I have the time to write a review/blog separately on this but you can take a look at Kyith detailed analysis here. I am not sure if this will perform as well as its historical performance but I am interested to compare it against StashAway most risky portfolio (Risk Index 36%) and Endowus 100% equity portfolio, so we will probably put in some money monthly.

Our Syfe REIT+ Portfolio
Composition: 100% REITs
Dividend: Reinvest
Monthly Investment: $1,000

Account Statement (Lifetime)


Our current tier is Blue (<$20,000). This is determined by the size of the portfolio which in turn determines the fees to be charged. The statement lifetime return is $558.58 which includes a $480 referral bonus. The actual lifetime return would be $78.58. Thanks to our readers for using our code!

Account Statement (June 2020)


The return for the month is $423.15 which includes a $440 referral bonus. This means our actual return for the month is -$16.85.

As of 7 July 2020, this is our portfolio performance:


Capital: $2,000.00
Current: $2,731.99 (12.69%)

Transaction Breakdown


There's too many so I will just share the first page. Anyway, if you want to extract the transaction information from Syfe, do take a look at this article - Syfe Transactions Parser.


After parsing them into a csv file, I pivoted the data to get the following view.

Management Fee


The management fee can be obtained by $1,781.19 x 0.65% / 366 * 30 ~ $0.92.

StocksCafe
In my opinion, the return captured by StocksCafe will be a more accurate representation of our portfolio return as the referral bonuses are treated as capital. Having said that, I can also understand why Syfe treats them as a return instead of a deposit too. Just a different perspective.


Anyway, looking at the time-weighted return (12.68%) for this year, we can see that Syfe REIT+ 100% is outperforming the STI ETF, SPY and VT (including fees). In addition, if we were to look at the projected dividends till the end of the year based on the existing investment, we can expect $70.25 of dividends or $5.85 per month. Since the dividends >> fees, this is a pretty sustainable portfolio assuming if there's no capital loss.

If you are interested in signing up, do use our referral code (KPOBONUS) for some cash incentive! Invests $500 and more and we will receive a $10 bonus each. Invests $10,000 and more and we will receive a $50 bonus each. Invests $20,000 and more, we will receive a $100 bonus each!

If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a longer trial period :) Refer to our Referrals page for more information.

You might be interested in previous months update too:
Syfe REIT+ (100%) Review
Syfe - May 2020 - $1,135.43
- Syfe - June 2020 - $2,558.58

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)