May 2017 Transaction

May 2017 Transaction

Its abit late for me to upload this article.. recently very busy so don't have much time to write it..

This is the first monthly transaction record for my blog. At the moment it is still very hard to tell my performance as I don't have any long term track record before, and I just moved into value investment recently.

No.	Stock	No. of Shares	Ave.Price	CurrentPrice	MarketValue	%Portfolio
1	COMFORTDELGRO	3,800	2.53	2.4	9,120.00	8.83%
2	SIA	800	10.7	10.01	8,008.00	7.75%
3	DESIGN STUDIO	12,000	0.575	0.58	6,960.00	6.74%
4	LHT	8,000	0.755	0.7	5,600.00	5.42%
5	OCBC	400	10.4	10.49	4,196.00	4.06%
6	PEC	9,500	0.655	0.615	5,842.50	5.66%
7	PNE INDUSTRIES	5,900	1.06	1.115	6,578.50	6.37%
8	TAI SIN ELECTRIC	20,000	0.44	0.44	8,800.00	8.52%
9	TAT SENG PKG	11,000	0.575	0.59	6,490.00	6.28%
10	KEONG HONG	31,000	0.462	0.485	15,035.00	14.55%
11	CASH	-	-	-	26,674.88	25.82%
	Total	-	-	-	103,304.88	100.00%

I bought Tai Sin electric again at 0.44 for 20 lots. If you read my first post you shall know that I bought it previously at 0.395 and sold at 0.46 for 18 lots. My plan was wait for it to drop then I will purchase my shares back again as I believe that the company has a strong fundamental and cheap valuation. I missed the opportunity to buy at 0.425 in April as I was having a short vacation in Japan with my girlfriend and her family. So when I came back to Rome and saw that I missed the opportunity I quickly open my new position as I thought the share is back to up trend again. I have attached the chart below:

But the share price didn't move like what I was expecting. The company also announced the 3Q result in May. The revenue drops around 11.6% but COGS drops 14.5%, so the gross profit up. Most expenses are about the same as last year result but the company recorded a better other operating income and a higher FX loss. Net profit up abit compare with last year result. I found the result not bad but also not very good, but increase of profit margin is a good sign to me too. So I will hold the share first and wait for next few results and annual report!

I also bought Keong Hong at 0.49 for 15 lots. Previously I bought Keong Hong at 0.435 for 16. What is the reason for me to increase my stakes at higher price? I have attached Keong Hong chart below:

After Keong Hong reach its peak at 0.535 at the end of April it had a correction and the share price drops to 0.49, which is around 8% drop. Keong Hong also announced that it will acquire 60% of Hansin Timber Specialist and Trading Pte. Ltd. The total value of shares acquired by Keong Hong is 4.5 million. Keong Hong paid 3 million in cash and pay 1.5 million in new shares at an issue price of 0.585 per share! This acquisition is a good news to me, so I increased my stake at 0.49 during the correction. Unfortunately I always failed to catch bottom, and it is really hard to anticipate the share price movement. After I purchased the shares Keong Hong's correction haven't come to the end. Recent low is at 0.46.. Well as I said it is difficult to catch bottom, anyway my average price is 0.462 and I am sitting on profit now. The recent report is not so impressive, but I shall wait for next few report as the hotels and airport in Maldives is going to generate revenue for the group from June. 

I bought PEC at 0.655 for 9.5 lots. Before I purchased the shares, I didn't do a full study of the counter. I only read the previous annual report, which made me found that it is a value stock. However, I didn't read the latest quarter reports! But the good thing is after I study about this counter (which is after I bought the shares, a very noob mistake which I have no excuse and shouldn't make after 5 years experience..), I found that at least I didn't overpaid for the shares. Even though the share drops to 0.6, the 3Q PE ratio is around 19.26 at my purchase price, and full year PE should be around 13-15, which is lower than average STI PE of 16.9 from 1973 to 2010. The share also met my debt/equity ratio criteria. My main concern of the counter is the this year dividend, and future profitability. I will wait for the annual report for more details about the company operation circumstances and decide whether I still want to hold the shares or not. anyway it is less than 7% of my total portfolio. From TA point of view 0.6 is just above the 200MA. Current RSI is only 8% which is in oversold region. Hope that 200MA can be a good support. The share price is still in mid-long term uptrend. I have attached the chart below with one support line on it.. 

I bought Tat Sent Pkg at 0.575 for 11 lots. Below is the chart of the counter:

The share price up more than 70% in less than 2 years! However I don't think that the share price fully reflect the company value. I will write a more detail review on this company. However the future profit margin might be lower as the market's competition is strong. I prefer to buy this company instead of its parent company HanWell as the dividend yield is more attractive to me. Anyway the 1Q2017 result should be out soon.

I bought LHT at 0.74 for 2 lots and 0.76 for 6 lots. This is another counter with very low trading volume. I managed to get in with near 8% premium. You can see from the chart how illiquid it is. Current average 14 days trading volume is only around 4k.. which is... 4 lots... which is less than 3k SGD per day. 

However, I found that the company's business is quite stable with experienced management team. As usual the company has a low debt/ equity ratio, low PE, low PB, with good dividend yield. I planned to hold this for long time too. Very sad that I didn't found this counter earlier or I might be able to buy at 0.55+. Anyway I will be able to receive dividend and wait for Mr Market realise the value of this gem! 

I bought PNE at 1.055 for 3.1 lots and 1.065 for 2.8 lots. I wrote a review on this company few days ago. The company just went XD on 29 May (actually I thought the XD date will be on 1 June lol). I am still sitting on small profit after XD! Anyway just gonna post the chart again, if interested can go read my previous review. It is a company with healthy balance sheet and good dividend yield. 

I sold TTJ at 0.45 for 18.5 lots. The company's latest result is not very good, and the order book was drying. When I read people's comments on investingnote, I can feel that many people are pessimistic with this company. The share price was ranging between 0.39 to 0.36 since I bought it. However, on 22 May the company announced that the company lifts the order book to 166 million with new contracts! Next day the share price gap up to 0.41 and slowly climb to 0.45 in next few days. I quickly took profit as I found that people might be too optimistic to previous new contracts news. When I look at previous half year result which was delivered in March, half year revenue was 46,501,000 SGD compared with last year 54,159,000 SGD. The previous new contracts for me is a sign that the company should be able to maintain the revenue level, and I don't expect any significant improvement with the revenue. At 0.45, the PE level is around 11 if i divide the share price with 2 times previous half year earnings. I found that current share price somehow fully reflect the current company's value. So even though the share price might goes up with current strong momentum, I still decided to take profit. I might buy back again at lower price again next time. 

There are few XD in my portfolio but haven't receive the funds yet. 

That's the end of my first transaction record. Seems like sell in May doesn't work this year! Wish yall huat!