14 September 2012

My Stock Portfolio Update - 14 September 2012

Since the post 1 years ago, I wish to make a record here to keep track my progress on stock portfolio. I am now more confident in Singapore stock market after going through a learning curve here. Some of the points I wish to note down here are:
  • Most of the China based company listed in Singapore suffer from very low valuation due to its lack of transparency as well as more frequent scandals happening in recent years. The most famous story is "Chaoda Modern Agriculture", a company which owns a large plots of agriculture lands but apparently found from hiding something from the shareholders and its management involved in insider trading activities. I believe it is a normal term for china businessmen to do business in China, as their regulators are not very strong in controlling the company. Quite a numbers of Singaporean investors would avoid to invest in Chinese counters listed in SGX. 
  • After going through a bear market since September last year and we saw a rise from 2,700 points to 3,000 points at the beginning of the year, and now we are at somewhere above 3,000 points. Even though the Singapore government projected a lower GDP growth this year, but some how the market is still in a up trend, which I also do not really know why it happens. So as what I mentioned earlier, we should not really time the market, but instead we should do more homework to find out hidden jewels from the stock market.
  • Oil & Gas sector is one of the best performers after the oil prices was under a very volatile price range due to certain reasons such as Europe financial crisis and discouraging US job rates etc. However we do expect a constant rise of oil prices in long term and I think it would not change the trend. More and more countries are exploring oil at offshore and it brings a good order book to rig builders.
  • Singapore property market cooling measurement started beginning of the year has brought some impact to the share prices of premium/luxury residential property developers such as Citi Development and Capitaland. China economy slow down also made investors cautious with the property developers with China exposure. You can see a huge volatility in China property developers such as Yanlord.
  • Singapore REITs were one of the best asset classes this year. I will still keep monitoring its tenant business in Singapore, but I am more favor on health care sectors, as it has the most bargaining power with tenants.
  • My stock portfolio size has been squeezed down to lower level (24% of total current assets), as I wish to renovate my new house and spend more time on doing research on managing residential buildings. Of course, I will standby to increase my exposure in stock market once the market crash happens again, which I do not think it will happen soon. So I just park my money at mortgage loan to enjoy 4.3% while waiting for bargain hunting again. 

Feel free to give me your comments on how you manage your stock portfolio. 

2 comments:

  1. YOOOOOO JACK. HAIG FROM LOS ANGELES HERE. i own some chaoda stock. i figure its a giant company with some trouble. insider trading etc... but if it did not have some problems it would never be at 10 12 cents. what do ya think? they were 1 of the few companies not effected by the sars virus some yrs back+they did a good job during the olympics. haig

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  2. Hi Bro Haig,
    Thank you for leaving me a comment here. I realized that most of investors if not all fear to invest in so call "Sino-Related" counters or in another word Chinese Companies listed in other market like US, Hong Kong or Singapore.
    The reasons why I believe are due to several points here:
    1. Lack of confidence due to fake reporting. As you cannot really go to China Mainland and check on the sales there, what you can do best is to reduce your exposure in Chinese co in your total share portfolio. Try to find out how other analysts recommend "Buy/Sell" to a company. And you will realize that normally Companies with healthy & consistent operating cash flow would enjoy better ratings (in term of Credit Ratings / Investing Ratings).
    2. My experienced colleagues told me that they always lose money in Chinese company stocks, and that's why they would only just to trade but not invest in long term. So how can a company to grow its share price if you can only attract short term traders but not long term investors?
    3. There are still many Chinese counters appoint non Big4 to audit their financial reports. And many of Chinese companies are actually family controlled business, that you may find it difficult to check on the integrity of the management. My suggestion is to put all your interested counters in your watch list first, and follow it through for at least 3 years before you invest big on it.

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