Sunday, 30 April 2017

April's Portfolio update

Finally we are at the last day of April 2017. As most of the companies had their Annual report out and AGM done, it is time for 穷小子, to update his portfolio.
Don't have any much significant changes to his portfolio to date, except for the small purchase of Singtel and Starhub. Main reason to scoop this small portion is due to the recent sell down after the TPG's Australia news and average down, on Singtel and Starhub respectively.

Year 2017
Total dividends: S$2457.18
Average dividends per month: S$491.43
Average dividends per day: S$16.27

Banks
28.37%
Telecommunications
31.98%
REITs
31.30%
Properties
5.51%
Oil & Gas
2.84%
100.00%

Saturday, 29 April 2017

OCBC 80th Annual General Meeting

穷小子 not intending to blog about this initially, but there is something he must share. Attended the AGM yesterday, and OCBC's CEO shook hands with 穷小子. Wahaha!! Not that 穷小子 is some kind of VIP, but the shaking of hands is because Mr Tsien is courtesy and polite, and greeted us with a Good Afternoon. Is a simple gesture, but is the effort which he had made counts. Feels so appreciated when he says Good Afternoon and Thanks us for coming. He don't have to do so, but he did. Applause!!
He walked from the front row and to the walkway column, where 穷小子 is sitted, to shake hands with each of us. By the way, all of these were happened very early, 10 mins before the financial performance presentation starts, and very much before the AGM.

With the presentation of the financial performance start..

穷小子 had to admit that he got lost when CEO is presenting the annual financial performance, so wouldn't share much of that in details. 穷小子 is non-financial background after all. Lol.

CEO shared with us that oil price at $70 will be required for the Oil and Gas industry to break even, and $60 for the lenders to break even. To further supplement, CEO also mentioned that OCBC can't confirm if the worst for O&G is over, but pointing out that 2017 will be a better year than the year before.

A shareholder question about the status of the divestment of United Engineers, and will there be any special dividends after the divestment?
- CEO answered that it is premature to discuss on the divestment status right now.

Another shareholder pointed out that continuation of this news will demoralized the shareholders and the public. Is there any ways or methods which OCBC's management can assist or expedite on the progress?
- Although OCBC is a stakeholder of UE Limited, UE works as an individual entity and will leave the decisions to UE's management.

China is second largest contributor to the profits after Singapore.

and so the AGM begins...

Management commented that higher interest rates is good for banks generally.

Chairman commented that OCBC CEO's remuneration had the most reduction among the 3 banks' CEO.

Why is there no Scrip dividend? Another shareholder commented that it is disturbing that some years have and some do not, which resulted with odd shares remains.
- Chairman answered that OCBC is in a strong capital position. This decision allows them to deploy the cash productively, and secondly, scrip will caused the diluting of share prices.
Ironically, most of us want scrip. Hmm, does this means the company has many money lying around? If dividend payout without scrip options means that OCBC have many cash, so does that means OCBC have less cash if with scrip options, and which means bad for the company? Guess there is no one plus one kind of direct answer. Management had to review the company's capital position at the right time to decide whether to payout in scrip or not.
Can see that most of the shareholders are chanting, "We want Scrip! We want Scrip!" Very unlikely that there will be any scrip dividends for 2017 after hearing from Chairman and CEO.


A shareholder asked why isn't there any 80th anniversary special dividends? The same question was raised during the last AGM.
- Same answer. The management will review its capital at the right time and decide accordingly. Guess that means they had decided not to give.
On a second thought to this, if the capital review on the scrip dividend decided to pay out dividends in cash, then it is contradicting to the above as in why not use the capital to give special dividends? Hmm. Or at least increase the dividends, which 穷小子 is expecting an increase in dividend. This link to another question, but Chairman stated that we should be looking at the payout ratio. Is like egg first or chicken first. Haha. But anyway, the trust is still with the OCBC's directors and CEO, and believe their decisions are made based on the company's best interest.

There is no "hungry ghosts" in this year's AGM. The doors are open and all the "hungry ghosts" are allow to get their snacks sets before the AGM started. This prevented the ugly scene which was experience last year. The whole AGM is enjoyable until Resolution 4(b). A lady keep pressing questions on the diversity the director, e.g. gender, race, nationalities, etc. Chairman had answered them, but she keep pressing on. The lady is completely wasting everyone's time. What is the point of asking these questions? Are you planning to enter the Board of Directors?

As 穷小子 is leaving the AGM, he had decided that OCBC is safe with the management's hands, especially with CEO's spearheading the businesses' operations. Until then, see you in 2018.


穷小子

Tuesday, 25 April 2017

Happy First Birthday, Poorlearnrich

Happy First Birthday, 穷小子!!

There is no birth date for 穷小子 literally of course, but it will be his first anniversary since his first post. Times flies, while still remembering from how much he had learned along the way for the past year. It has been a while since the last post, and just saw that Poorlearnrich is moving towards 50k views. Thanks for all the supports.. ^^

Pardon for no much significant posts for these past few months, perhaps there may be nothing much to talk (complains) about when Mr Market is in good mood. Market is still not stable as usual, with the UK's early election, tension between US, China and North Korea, French presidential election, and the list continues. Nonethelessly, STI managed to hit a high gain of 10.73% year to date, before coming down to today closed at 9.83%. A nice run so far for 2017.

Attended few AGM this year and quite glad with the results, especially with CapitaComm and Mapletree Comm. Never tired to emphasis again that these are my right choice last year. Hehe.
On the other side, Singapore's Telcos industry is still worrisome, with the disappointing results and the top shareholders from M1 approached potential buyers to sell their combined stakes. This somehow gives 穷小子 an idea that the main shareholders are "begging" for buyers to buy from them and they want to get out as soon as possible. In normal circumstances, if a potential buyer makes an offer to buy, the company may became a gem to be discovered down the years, but M1 seems opposite now. Not trying to talk down M1 in here, but it happened. M1 is still about 10% of 穷小子's portfolio.
Added a small position of Starhub recently with a decent yield of about 5.6% if the payout remains at $0.16 per year. The main reason for this purchase is mainly to average down the price. As mentioned before, local Telco industry will be a long winter for the next few years, so current strategy is to average them down slowly.

Next is review on Noble again. Yes, 穷小子 said before that he will no longer covers Noble again, but this serves as an statement to reminds himself that he had made a right choice to cut it. Although is too late, $780 remaining still serves as a good use for 穷小子's expenses. Noble had announced shares consolidation last month, which 穷小子 had commented when he cut his loss and in his last post about Noble. What can be the next step? Issue rights again? Rinse and repeat? This time really is the last on Noble. :)

Most of the companies had reported their annual reports. 穷小子 will share his portfolio in his next post!!

Last but not least. 穷小子 just came back from his Turkey trip. It is a beautiful country must say, accompanied with a very long history. Shall try to share about it if had the time.

穷小子

Wednesday, 1 March 2017

February's Portfolio update

We had ended the first two months of 2017, let's see how 穷小子's portfolio performed.

穷小子 has not done anything to his portfolio in 2017 yet.
- Prices are not high enough to sell
- Prices are not low enough to buy
- More importantly is, 穷小子's pocket is still empty. Still building his warchest.

穷小子's portfolio update:

For the period of these first two months, 穷小子 will be receiving a total of S$812.82 of dividends. Slightly more than half of it is much contributed by the newly purchased REITs, feels that these are good purchases so far.

Watchlist
Looking at ComfortDelgro currently after reading some of the thoughts from some of the bloggers and forumers. While trying to wait for his salary and dividends to come in this week, ComfortDelgro had slowly creeping upwards day by day. Shall wait for an opportunity for a good price.

March US interest rates hike
The odds of an increase have jumped above 70 per cent, from 40 percent on Friday. If ComfortDelgro price doesn't comes down, then 穷小子 may change his direction to REITs again. Made quite a good purchases last December, looking to add more either MCT or FCT.

Ezra's joint venture files for bankruptcy. Will this become a domino effects which caused another sell-down on the banks again? As what had happened last year? 穷小子 don't know too, but it will be wise to save some money for banks shopping.

Year 2017
Total dividends: S$812.82
Average dividends per month: S$406.41
Average dividends per day: S$13.78

Wednesday, 22 February 2017

First big spending in 2017

If you had read about 穷小子's style, you would have known that he does not like to have huge spending. Furthermore, he paid them on the spot this time without any much delay. So what did he had bought exactly?

A trip to Turkey, with Air Tickets, Hotels and taxes all in, excluding the tipping and optional. That's right. 穷小子 loves to travel. When was the last time when he spent thousands? Hmm. Think that would be another travel trip, a free and easy to Japan in 2015. He made the payment on the spot at the travel fair last weekend. Don't worry, he had actually did much surveys and comparisons beforehand.
$1389, the exact amount he spent. Fair enough. This is not really a huge amount, but it just doesn't fit into 穷小子's style. Too bad, he just simply cant escape the temptations of it. He loves to explore new things, experience new cultures and interacts with different people. Of course, there is still a passion for his photography. Frugal, but should spent when is worth it, else what is the point for living without its fullest? Experience and passion is something that you can't buy with money literally.

At the travel fair, these are what 穷小子 had observed.

  • There are still a lot of people at the fair. Some maybe for enquires, some may have made the purchase, but the crowd is definitely there. Either we are still far from recessions, or we will only start to fear when the crisis really hit on us.
  • Suntec seems to be losing out at travel events. Natas Fair and Travel Revolutions is held at Expo and Marina Exp respectively since long time ago, if not, for the past 3 years at least. Although the Chan Brothers and other agencies did held concurrently during the same period at Suntec, they are not taking the conventional halls, but only the concourse area.
  • SIA is celebrating their 70th anniversary this year (some good thing to share), and they are partnering with Natas Fair and Travel Revolutions for last and this week respectively. With this, 穷小子 noticed that SIA is available for most of the long-haul flight, this will boost their sales this year if the promotions worked out perfectly for them.
  • 穷小子 will be taking SIA for his upcoming trip as well. He did his homework before the fair since last year. He concludes that the price which he paid for the package tour is lesser than by purely purchasing the air tickets from SIA directly. Flights only to Turkey by SIA is more than $1400, but package tour with hotels is less than $1400. Dont know how they had managed it, but nothing new here, seems like there are some collaborations between SIA and the travel agencies. Not only SIA, other airlines as well.
  • Travel nowadays is definitely much cheaper now than years and decades ago. The YOLO mindset by the younger generations are definitely affecting their parents or even grandparents. Teenagers and young adults are no longer the only target audience anymore, the crowds which 穷小子 observed are occupied by the groups of elder generations actually, who want to travel but avoid the hassles of planning the itineraries themselves.
  • Warren Buffett's Berkshire Hathaway will invest billions of dollars into the US airline industry, for the second time within six months. The move showed a stunning change of heart for Buffett, who once referred to the US airline industry as a “deathtrap for investors.” Time are changing, and we need to adapt and adopt.
  • SIA is hurting by the increase of budget airlines and from the pressure by the fellow famous Airlines brands. How SIA collaborate with travel agencies is an important factor for SIA to cut its edge out from this challenge industry.
  • SIA has one unique advantage over its competitors, after all, SIA is our iconic brand which carries Singapore flag to fly across worldwide. 穷小子 confirm support SIA if the price doesn't differ by much, and bet that most of the fellow locals feels the same way too.

穷小子 not invested in SIA currently, but start to monitor it.

First time going for a guided tour instead of having a DIY trip. How would the trip be like? We will know it in April.

P.S. Hmm. No wonder he can save almost 50% of his salary for 2016, because he only went to Malaysia and Thailand for that year