Saturday 1 August 2015

Portfolio Update - July 2015

*As of 31 July 2015

No. of Shares
Average Price (SGD)
Total Capital Invested (SGD)
Croesus Retail Trust
Cash Reserves and Equivalents
Total SGD

Total Invested Capital = $9,282.00

Total Expected Dividends/month = $760.00*

Average Dividend Yield = 8.19%

*Based on recent annualised dividend of 1.9 cents (Q3)

To sum it all, the month of July was basically a bull trap. From the relief of the Greek outcome, to the plunging of the index way below the previous lows tested during the depths of the Greek saga.

The STI closed at a low not seen since early last year; with intraday trading hammering the STI to as low as 3,184.57. This was surprising given the not so heavy sell-offs from the other indices around the world. Basically, the hopeful bulls emerging from the Greek saga was tactically besieged by the bears which completely outnumbered them. There was clearly fear in the markets today, with all most hopeful bulls running for cover. Opportunity or downtrend to continue? We shall see soon.

As mentioned in my previous post, I have divested all stakes in REITs, some which turned out to be bad calls and some which turned out to be good calls. 

Lets start with the bad call. Well, the bad call definitely would have to be the divestment of Keppel DC REIT. Even up till now, the REIT is still trading way above my liquidated price, which may be currently in consolidation phase. Once again, strong fundamentals of the REIT continued to support its share prices, despite poor sentiments due to interest rate hike uncertainties. 

The majority of my capital tied up with Cache Logistics Trust was recovered in full, along with a small almost negligible gain. This turned out to be a good call, as the REIT is now trading at $1.08/1.085, which represents a possible loss of almost $1.5k if I had failed to exercise steps to protect my capital.

Moving on, some of you might have noticed I have added a stake in Croesus Retail Trust, which is slated to report results on the 26 August 2015. Based on the last quarter dividend payout of 1.9 cents, I am expecting at least 3.8 cents dividend. As I am still cautious on the poor sentiment on assets sensitive to interest rate hikes, which is more or less expected sooner or later, I am seeking to minimise heavy exposure to such assets as the downtrend might continue. In order to have a reasonable safety margin, I would demand at least 8% yield for risk taken. I believe Croesus Retail Trust has fulfilled my requirement for that. 

Even so, I would prefer to watch from the sidelines while the volatile markets rage on, as capital preservation would be absolutely essential to ensure adequate capital for possible compelling opportunities which may present itself anytime.

Invest and sleep well :)

PS: Observant readers may notice that the total amount of cash allocated for investment purposes have fallen from the last month. This is because I have allocated some cash for a heavy budget coming up. I am in the process of planning an overseas trip along with miscellaneous payments including insurance, wedding packets and some one-off big ticket items which demands significant amount of funds.

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