Portfolio Update - October 2017

Our portfolio grew by 6.76% to $286,449 - $8,217.65 of capital injection and around $9,925.66 of capital growth! I got to say the whole of October has been a really good month for property, construction and REIT stocks which form majority of our portfolio :)

There is a lot of activities this month!

SOLD
- Saizen REIT (8,900 units) @ $0.03223 (Delisted - P&L: $3,184.64)
- Sing Holdings (4,400 units) @ $0.47 (P&L: $321.04)
- Wee Hur (5,000 units) @ $0.285 (P&L: -$313.21)
- Croesus Retail Trust (6,801 units) @ $1.17 (Delisted - P&L: $3,339.89)

Saizen REIT was one of our first investment in REIT and we have been holding on to it for about 3 years. I was hoping the reverse takeover would happen but it did not. The huge loss in P&L is because when it got bought over, it distributed its capital in the form of dividends last year. Overall, we made an absolute +39.9% from it and an annualized return of +12.4%.

I was just blogging about Sing Holdings last month that it should trade nearer to its peers PB and it came faster than I expected! It was sold as the trailing stop loss I set got triggered. Fortunately, the price was near what I had in mind and there was a better opportunity (Singtel). Overall, we made an absolute +18.4% and an annualized return of +514.6% for holding 34 days. lol.

I have always wanted to sell Wee Hur because it is not my kind of stocks (not an asset play or a dividend stock). I bought it years back when I was blindly following people in the forum without analyzing the fundamentals myself (I did not know how to do it then). The opportunity came this month when the price shot up too and I sold it on the same day as Sing Holdings for Singtel. Overall, we made an absolute loss of -16% and an annualized loss of -5.8%.

Croesus Retail Trust is another stock that got delisted this month as it was bought over at a premium to its NAV (similar to Saizen). Japan stocks are my lucky star. lol. Overall, we made an absolute +57.8% from it and an annualized return of +20.6% after holding for about 2.5 years.

BOUGHT
- Geo Energy (18,000 units) @ $0.27
- Capitaland Mall Trust (4,000 units) @ $2.02
- Capitaland Commercial Trust (2,000 units) @ $1.643
- Singtel (1,000 units) @ $3.68

In short, Geo Energy is a stock with crazy growth potential and many many years of coal to mine. lol. I will not even try to tell you how to value it because I know I cannot do a better job than these people:

ThumbTack Investor: https://thumbtackinvestor.wordpress.com/?s=geo+energy
SmallCapAsia: Will Geo Continue to Deliver?
Heartland Boy: Geo Energy: Initiation Report
SG investors.io: https://sginvestors.io/sgx/stock/re4-geo-energy-res/analyst-report

We were pretty interested in the Lion-Phillip S-REIT ETF but eventually decided to buy the underlying. Hence, we bought the top 2 REITs in the ETF. I made a mistake with Capitaland Commercial Trust Rights too. You can refer to these articles if you have yet to read them:

1. Mistake on Rights Issue - CapitaLand Commercial Trust
2. How ETFs Work - Using Lion-Phillip S-REIT ETF as an Example
3. 3rd REIT ETF - Lion-Phillip S-REIT ETF

As mentioned above, there was an opportunity to buy Singtel. Given the limited capital and the timely stop loss of Sing Holdings, I went on to liquidate Wee Hur and top up another $200+. Why Singtel?

The above information is extracted from SGX StockFacts sorted by market capitalization. This may come as a surprise to you but the market capitalization of Singtel is actually larger than our 3 banks! Too big to fail? Their business is so diversified that the 4th telco has limited impact. Furthermore, a 4+% dividend yield for a blue chip with the potential for capital growth is extremely attractive!

The total dividends collected this month is $1572.30. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
First Real Estate Investment Trust	AW9U	27-Oct-17	7,000	$149.80
CapitaLand Mall Trust	C38U	26-Oct-17	7,000	$194.60
GuocoLand Ltd	F17	26-Oct-17	9,000	$630.00
Mapletree Greater China Commercial Trust	RW0U	26-Oct-17	5,000	$185.70
Soilbuild Business Space REIT	SV3U	20-Oct-17	30,000	$412.20

Total dividends collected for 2017: $10,099.22
Average dividends per month for 2017: $841.60

StashAway

Capital: $2,000
Current: $2,032.56 (IRR: 3.2%)

StashAway made a few changes to their interface and we love it! I will be publishing a separate article to discuss them. Stay tuned :)

StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link

Health - KPO Needs to Lose Weight
Date: 2017-11-02
Weight: 75.6 kg (Lost close to 8kg already!)
BMI: 25.2

Bought a new toy - Mi Smart Scale!

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 :)

Croesus Retail Trust - Interesting Opportunity to Arbitrage

As you might already know, Croesus Retail Trust will be delisted on 27th October 2017 as it has been acquired - Blackstone makes offer for Croesus Retail Trust at S$1.17 per unit.

The interesting thing is that the current share price is S$1.165 and that presents an opportunity to arbitrage! I buy at $1.165, hold till 11th October 2017 and get paid S$1.17 on 27th October 2017. As a SCB priority customer, there is no minimum commission and the commission structure is as follows:

1. Brokerage Fees: 0.18%
2. SGX Clearing Fee: 0.04%
3. GST: 7.00%

A quick calculation shows that the return is about 0.19%. Assuming that I make the purchase tomorrow (4th October 2017 and hold till it XD/XE on 11th October 2017 - about 8 days), the annualized return becomes 8.82%!

Is this risk-free? Certainly not if it is before 5th October 2017...

There is a court hearing to sanction the scheme so there is a extremely tiny possibility that it might not go through or even getting delayed. Hence, the market is pricing it at S$1.165 for people that want to get the money now and seal the deal.

However, if the share price remains to be at S$1.165 after 5th October 2017, KPO might throw all his cash into it and collect them back on 27th October 2017 xD

Health - KPO Needs to Lose Weight
Date: 2017-10-03
Weight: 78.5 kg
BMI: 26.2

Portfolio Update - June 2017

Our portfolio grew by 2.05% this month purely by capital gain to $250,181! We did not put in any money and still collected dividends!

One of the main reason why there was such a huge capital gain can be attributed to the acquisition offer for Croesus Retail Trust at $1.17. The offer is at a 22% premium of its NAV ($0.96) and 38% premium based on its 12-month volume weighted average price per unit - Blackstone makes offer for Croesus Retail Trust at S$1.17 per unit. I know there are people out there that feels that this is not a good deal or there can be a better deal, etc but KPO is only a small shareholder who is easily contented. With an average price of $0.849, this is a 39% capital gain (excluding the dividends that have been collected, 54% with dividend)! This is why KPO likes buying REITs/Trusts that are undervalued (below NAV). There is room for capital growth and we can collect dividends while waiting patiently for their true value to be unlocked :)

Screen shot from stocks.cafe

There were many good opportunities to pump in more money this month (such as Thai Beverage when it was around $0.85 and QAF at $1.25) but KPO got banned (indirectly) by CZM. Seeing how I have been investing my money almost every month and having less than $5k deposit in my bank account is worrying the more risk averse CZM. In view of the upcoming large expenses, wedding next year and our BTO should be completed by 2019 Q2, CZM said that we should top up $10k each to the KPO Expense Fund by the end of the year. You can read this article if you do not know what is KPO Expense Fund. If I cannot do that, I will have to liquidate $20k of my portfolio to top it up @_@"

June was also a very good month for those that invested/speculated in cryptocurrency. All of them hit an all time high around mid-June with Bitcoin breaking $4k and Ethereum breaking $500. The last time I was looking at them, Bitcoin was around $1k and Ethereum was around $10+. That is a ridiculous amount of return! KPO has been reading up a lot recently and will be sharing his views. Stay tuned!

The total dividends collected this month is $440.25. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Accordia Golf Trust	ADQU	09-June-17	10,000	$359.00
Asian Pay Television Trust	S7OU	14-June-17	5,000	$81.25

Total dividends collected for 2017: $5226.21
Average dividends per month for 2017: $435.52