Note 10: June Updates


June hasn’t been kind to the Singapore and to a certain extent, HK and Malaysia as well. The uncertainty increases with the China vs USA throwing barbs at each other. Singapore, HK and Malaysia being the benefactors of the global economy are bound to take some hits.
On the other hand, it also means a lot of opportunity for purchase and investment. I am looking into buying more of those stocks I deemed low in valuation, but I shall wait when they hit my desire prices.
Singapore
For this month, the Singapore market is still badly hit by declines in Singtel and the reduction in property shares. Overall, the smaller counters have also been hit. I suspect that the market is bailing out due to the reasons discussed. I have increased Miyoshi as well, with the intention that the company is still below P/B and also it’s a decent company with mostly upsides in the mid term. Been screening thru some counters, but while market is down by around 5-10%, I don’t think it’s a time for me to panic or increase in the short term. At the current stage, looking to sell my Hupsteel shares to increase my cash holdings from 16% of Singapore portfolio to 20%.
Hong Kong
HK shares as mentioned, aren’t spare the onslaught by the global turmoil. However, due to lack of funds, the strategy is to increase the turnover of this portfolio. Luckily, there are enough good value shares to take advantage of the situation. The decline in June has stalled, but HK being so near to China and derive so much value from it, will bound to see some up and down. I am nearing to buying all the counters that I deemed as value. I have just bought a small portion of Soundwill.  There are still a few remaining below which I am monitoring as below. Not an advice to buy though,

  • ·         Dickson
  • ·         Chen Hsong
  • ·         International Art Optics
  • ·         Wing Tai
  • ·         Future Bright
  • ·         Rosedale
  • ·         SIS International
  • ·         Keck Seng (New addition)

Malaysia (Nasi Lemak)
Malaysia portfolio bounced back spectacularly this month. Reason is mainly due to Karex finding it’s groove back. I sincerely hope that they will bounced back to the value I assigned to them. I didn’t use the asset approach for Karex, this resulted in an over valuation.
I was also given 220 new shares by New Hoong Fatt, which have also increased my holding values. Right now, I am building up my warchest and understanding of the market for Malaysia. The counter below is what I am looking at the current moment.
  • ·         Keck Seng
  • ·         Cheetah
  • ·         Golden State
  • ·         Poh Kong
  • ·         Gul Holdings
  • ·         Kumpulan
  • ·         Berjaya Asset


Vice Portfolio
If you guys speak about a counterweight to the global shares, I think a combination of vice counter might fit in very well. This month, the tobacco counters recover slightly, and I do expect them to hold their forts.
Demands for such products are usually inelastic and I think the shares might have been oversold last few months. Nonetheless, I still think there are some fats to be trimmed at PMI, as they seem to have over expanded.  

I am also expecting to receive my dividends over the next few months. This will add on to the warchest until the following shares are attractive from a PE persepective.
The next vice category I am looking at is the alcohol category. But my personal feel is that the alcohol counters are overpriced and they will need some storm to tilt them over. Meanwhile, I will just observed the fun!

Beer
  • ·         Heineken
  • ·         Heineken Berhad
  • ·         Carlsberg
  • ·         Carlsberg Berhad
  • ·         ABV
  • ·         San Miguel

Alcohol
  • ·         Diageo
  • ·         Pernod
  • ·         Remy Martin
  • ·         Suntory
  • ·         Brown-Forman

Overall
I will say June isn’t as bad a month vs May, however there are still declines coming from the Singapore market. This is the time to also train my lizard brain not to panic. The route to financial independence aren’t easy and it will never be easy. Like someone told me, if you can’t handle a 5% drop, you are not suitable to be investing in shares. 
Total


YTD
% Performance
SGD
Total SGD

Portfolio YTD
MOM
Jan-18
302,905.8
302,610.3

-0.1%
#REF!
Feb-18
302,905.8
300,659.5

-0.7%
-0.6%
Mar-18
302,905.8
301,797.6

-0.4%
0.4%
Apr-18
302,905.8
306,594.0

1.2%
1.6%
May-18
302,905.8
298,978.6

-1.3%
-2.5%
Jun-18
302,905.8
291,197.1

-3.9%
-2.6%

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