$$$ KPO and CZM $$$: Portfolio - April 2018 + What is Ezion W230416?

Tuesday, May 1, 2018

Portfolio - April 2018 + What is Ezion W230416?

Happy Labour Day everyone! This week will be a very short week for those people that took Monday off :) Our portfolio increase by 4.01% to $336,021 - $7,767.24 of capital injection and $5,180.91 of capital gain.

KPO and CZM Portfolio Bar Graph for April 2018

- Ezion (9,900 units) @ 0.225

I blogged about it last week - Ezion - Bleeding Stopped! In short, I am really glad that I sold it off on day 1. My total capital was $6,167.70 and I manage to get back $2,222.26 after ~ 4 years. I lost in total $3,939.30 including commisions which translate to a total loss of -63.9% and an annualized loss of -37.9%!

- STI ETF (1,000 units) @ $3.40
- Lion-Philip S-REIT ETF (1,000 units) @ $1.006
- Parkway Life REIT (2,000 units) @ $2.78
- Ezion W230416 (5,940 units) @ $0

We bought 1,000 units of STI ETF when the market was throwing a tantrum early April and bought 1,000 units of Lion-Philip S-REIT ETF as part of our new strategy - New Singapore Budget, New REIT Strategy!

I blogged about the possibility of using leverage to increase our return - Leverage - A Double-Edged Sword. The initial plan was to use it to purchase a relatively stable stock giving 5% dividend, use the dividend to pay off the cost of borrowing/interest at 3% and earn the difference. That relatively stable stock is Parkway Life REIT. Having said that, we have yet to use any leverage because we still have money "idling" in our bank account.

Using the above illustration, it makes sense for us to "borrow" from ourselves (KPO Expense Fund) instead of borrowing from the bank. I know it may sound complicated/illogical to some of you but that is how we are managing our money. You can read more about it here - Managing Finances As A Couple.

Last but not least, there is Ezion W230416. As much as I would like to get rid of Ezion totally, it continues to haunt me. So what is W230416? It is a warrant/baby share which allows the shareholder to convert the warrant/baby share into the actual share/mother share before the specified expiry time at the specified conversion price. There are many reasons why a company would issue warrants but I will not get into that.

As you can see, Ezion issued 3 warrants for every 5 shares, the exercise price is $0.2487 and the expiry date is 5 years later on 2023-04-16 (derived from the warrant name). I had 9,900 shares before it was suspended so I was allocated 5,940 warrants (9,900 / 5 x 3) for being a loyal shareholder who did not sell the shares from 8th August 2017 to 16th April 2018. You can refer to this for more information.

Unfortunately, this warrant is not listed and cannot be traded/transferred unlike W200424 which is listed as BSHW with an exercise price of $0.50. Based on the current price of $0.121, both warrants are useless/worthless now because no one in the right mind will pay more to exercise/convert them to actual shares. Having said that, W230416 could be a sign that the management is confident that Ezion's business will recover and the share price will be higher than $0.2487 by 2023. However, existing shareholders do be prepared to be "diluted" in the event when Ezion's share price rise above these 2 exercise price (although I highly doubt that it will happen).

The total dividends collected this month is $546.04. The breakdown is as follows:

Company Symbol ExDate Shares Total
CapitaLand Mall Trust C38U 26-Apr-18 7,000 $194.60
First Real Estate Investment Trust AW9U 23-Apr-18 7,109 $152.84
Soilbuild Business Space REIT SV3U 20-Apr-18 15,000 $198.60

Total dividends collected for 2018: $2,697.52
Average dividends per month for 2018: $674.38


KPO and CZM StashAway Asset Summary for April 2018

Capital: $7,000.00
Current: $6,956.62 (IRR: -1.5%)

Health KPO Needs to Lose Weight
Date: 2018-05-01
Weight: 72.4 kg (Gain weight! It seems that I have hit a plateau/natural weight of ~71-72++)

BMI: 24.1

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