Note 7: April Update

Note 7: April Update

Overall

For this month, I see the market slowly recovering, I think the main drivers are mainly due to the improving stability across the region, the optimism that all is not that bad with the China economy and also that the market has accepted that future rates hikes are ok. My overall portolio has only increased 1.6% this year YTD. Many issues comes with the currency movement from HK as it devalues.

I try not to be affected by all these movement

Singapore

Finally received the LTC moolah, and I have also invested a small amount into Ho Bee. It’s generally undervalued, and I believe that the return of the property market and the improving sales at Sentosa will improve the situation for this counter. In terms of the overall performance, I am still underperforming the market. It’s getting tougher, but the value approach seldom works in times of bullishness.

Market is no longer cheap, but generally fair valued (based on my criteria’s). But there are a few which I might enter or add depending on the situation.

·       Grand Hotel

·       Chemical Industries

·       Hiap Hoe

The situation in Grand Hotel is in my opinion, is very interesting. The owner has been adding the shares over the past few months. My suspicion is that he sees business improving and will want to reap more of the benefit. We shall see if a GO is on the cards.

Hong Kong

Hong Kong market has been pretty subdued this year, but I am registering growth on par with the index. I have sold Oriental Watch @ 2.5 HKD per share this month. It has reached a number that I am satisfied with. I also will like to recycle the capital into pure property counter.

The HK market has been relatively subdued so far. It’s also a good time to reflect.

I am already monitoring a few stock such as

·       Dickson

·       Chen Hsong

·       International Art Optics

·       Great Eagle

·       Wing Tai

·       Soundwill

·       Future Bright

·       Rosedale

·       SIS International (New addition)

 Malaysia

 Karex has went down significantly, affecting the portfolio. However, I have to take the responsibility that I wasn’t using the value approach when I purchase this stock, it’s more like a small nibble on a business that I think have great room to run Ever since than, it has declined to an extent that the discount to NAV makes it look a great bargain.

Due to the need for me to control my tendency to invest too much at inappropriate time, I have also decided not to invest so much into the Malaysia market till I have enough cash for this portfolio. I am not too concerned about the market perception on Malaysia’s political situation, which I know, is like an overhang on the stock market. I will prefer to control on things that I can manage.

Malaysia is a great counter balancer to your portfolio, as long as things don’t go the Venezuelan way.  I have already shortlisted a few of their shares such as

·       Keck Seng

·       Cheetah

·       Golden State

·       Poh Kong

·       Gul Holdings

·       Kumpulan (New addition)

Vice Portfolio

Vice portfolio, as mentioned is a little experiment from my years in the trade. The market has plunged around 15-20% this month due to negative expectation on PMI’s recently quarterly report.

There are also some changes to my portfolio, I have increased my investment into this portfolio, amount being $5,000, that is why you have  I have also make an investment into PMI, at the cost of $85 USD, small qty though.

 As I said, there isn’t much of an investment strategy going on, but it’s more of an interest to see whether will a vice portfolio outperform the market over a 20 year period. My belief is that this portfolio will have an average of 8% -10^th growth over a 20 year time period.

Conclusion

I am more keen to explore value stocks outside of Singapore for the years coming, but the market has slowly turned bullish.Patience is key!