Portfolio Update - November 2017

Our portfolio shrank by -1.86% to $281,122 - $3,434.19 of capital injection and -$8,761.19 of  capital growth/reduction. We enjoyed a $9,925.66 of capital growth in October 2017 and that has disappeared faster than expected. In short, the decrease is due to the property stocks retracing back to the previous level.

SOLD
- MindChamps (5,000 units) @ $0.9

I blogged about MindChamps in the previous article - What's Harder than BTO? IPO. Our initial plan was to hold it for the long term but due to a change in government policy, we decided to put a stop loss and the stop loss was eventually triggered. It was still a decent profit for about 5 days - $104.11 (+2.4%) and an annualized return of +454.5%!

BOUGHT
- MindChamps (5,000 units) @ $0.875
- Capitaland (1,000 units) @ $3.53

We decided to buy more Capitaland when the majority of the property stock price decreases last month. Capitaland is the largest local developer in terms of market capitalization  (GLP will be delisted soon) and it is well positioned for more growth by expanding into other countries instead of bidding aggressively/en bloc for land in Singapore.

Dividends
The total dividends collected this month is $598.01. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Geo Energy Resources Limited	RE4	24-Nov-17	18,000	$180.00
Singapore Post Ltd	S08	23-Nov-17	7,000	$35.00
Frasers Logistics & Industrial Trust	BUOU	08-Nov-17	8,000	$134.40
Far East Hospitality Trust	Q5T	08-Nov-17	10,156	$104.61
Starhill Global Real Estate Investment Trust	P40U	02-Nov-17	12,000	$144.00

Total dividends collected for 2017: $10,697.23
Average dividends per month for 2017: $891.43

StashAway

Capital: $2,500
Current: $2,536.26 (IRR: 2.8%)

Do take a look at this article if you missed it - StashAway Clarifications - Reward-to-Risk Ratio where Freddy Lim (Co-Founder & Chief Investment Officer of StashAway) clarify how StashAway is optimising return by taking on lesser risk.

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

Health - KPO Needs to Lose Weight
Date: 2017-12-04
Weight: 74.4 kg (Lost close to 9kg already!)

BMI: 24.8

What's Harder than BTO? IPO

I always thought applying for a BTO was hard, until I try IPOs! $6 for 3 tries but did not get any!

Even though we did not get any shares from the public tranche, we decided to purchase MindChamps from the market and hold it long term because we believe that parents are willing to spend money on their children to give them the best. So I place an order before the market open at $0.84 but did not get any (not sure why). I continued to chase (kept modifying the order) the price and finally got in at $0.875 for 5000 units. MindChamps went on to close at $0.92!

On Monday (27th November), MindChamps closes at $0.96 which means it was trading at a PE of 43x! However, the next day, MOE releases a news -
MOE kindergarten kids get priority admission to co-located primary schools from next year which would definitely have an impact on private preschool including MindChamps. Not sure if MOE is trolling or already give face to MindChamps by releasing the news at this time. lol. The price went on to close at $0.915.

Appeal of MOE Kindergartens will shoot up, parents say. Parents simply want the best for their children and this news is a big deal! We decided to put a stop loss at $0.90 and guess what? We got kicked out today with a little bit of profit $104.11 (+2.4%) and an annualized return of +454.5%! So much for holding long term. Hahaha.

Should we chase No Signboard tomorrow? Probably not. Since the public tranche is 268.6 times subscribed, the public demand should be huge! Huat to those that got it!

IPO Hit and Run Calculator

KPO is sharing more spreadsheet! Hahahaha.

We have a few IPO upcoming and the latest one is RE&S Holdings Limited (closes on tomorrow/19th November 12pm) followed closely by MindChamps (closes on 22 November 12pm).

This post is not about my analysis of the company. You can refer to these analyses:
- Singapore IPOs: RE&S Holdings Limited
- sginvestors.io: Phillip Securities IPO Note
- Singapore IPOs: MindCamps Preschool Limited

I did a 3 years analysis a few months back on IPOs - Will IPO Make Money - IPO Analysis for the Last 3 Years. Do take a look if you have not :) I jokingly concluded that we should participate in all the IPOs and sell on its opening day! While I was reading Mr. IPO's summary on RE&S Holdings, he mentioned that this IPO will be a hit and run and I thought of coming up with this spreadsheet.

A quick way to tell if a company is trading at fair value is to compare its PE against that of its peers. In the above analysis, we can be sure that RE&S Holdings is trading below the industry average PE. Do note PE comparison is a quick way to compare stocks, not the best way. Is there even a best way? lol.

Using RE&S Holdings as an example, the following highlighted fields can be modified/configured with the relevant numbers. Based on the budget/cash you have, it will automatically compute the number of units that can be applied. One can apply for IPO either through the public tranche (ATM or ibanking) with a $2 application fee or through placement where the brokerage fee is at 1% with 7% GST.

Assuming that we were allocated X number of units and we sell the stock at around industry PE which is $0.255. Regardless of the number of units allocated, we will definitely profit from it including all the fees!

However, if we were to sell the stock slightly higher than IPO price at $0.225, depending on the number of units allocated, we may/may not lose money after deducting the initial cost and the commission from selling the stock. This spreadsheet will also be helpful in determining a trailing stop loss for your IPO stock.

Google spreadsheet can be accessed here - IPO Hit and Run Calculator. Have fun!

On a side note, we will be applying for 101,000 units of RE&S Holdings Limited. Huat ah!

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