A relative quiet start to the month with a few sells and buy with a a new counter for CPF portfolio after a decade. Increase market movement over the past week, so took the chance to buy more.
Cash Portfolio
First half of the Month
I sold Capital Mall Trust (CMT) for a gain of 3.8% to raise fund for other REITS. With the cash, I added more Mapletree Industrial Trust (MINT) at $2.00 and took a small position for Frasers Hospitality Trust (FHT) at $0.725. Continue to like the expansion of MINT into data centre. As for FHT, chanced upon the drop in price due to a weaker quarter. Took a cursory look at the report and its latest annual report and perceive that the outlook seems to be good for the next few years.
I took a loss of 8.9% for 800 Super after selling at $1.06. The group reported two consecutive quarters of drop in revenue and net profit. While the commencement of WTE plant since February might bring some reprieve in the next quarter, I am not comfortable with the ballooning debt.
With the proceed from 800 Super, I transferred part of it to my FSMOne US account and initiated a small position on Arista Network (ANET) at US$250.79. The price has dropped by 18% from its 52 week high of $307 after it announced its record earning for 2017 and dropped by about 6% from $267 after it announced its 2018Q1 quarter. On both occasions, the group has announced very strong numbers but investors are spooked by the the lower forward guidance. Based on my reading of various reports, the management has a history of conservative guidance. Hence, I decided to take the opportunity of the current price weakness to take a small stake in this fast growing network provider.
Second half of the Month
I added UMS at $0.955 when it fell after lower short term growth guidance from AMAT. Not sure about the impact on UMS but I think it will maintain its 6 cents dividend, so decided to accumulate. No change in average price.
I also added back some Straco back at $0.76. After computing its latest Q1 results, I think its 2018 revenue and EPS will decrease not more than 15%, assuming there is no more incident. The company should at least maintain its 2.5 cents of dividend and I do hope it can increase it with its growing net cash position. Average price is at $0.83.
I could not even remember when I last subscribed to IPO but I got lucky with Hyphens Pharma which was 150x oversubscribed and was allocated 3000 shares. However, things did not turn out as expected and it debut with a whimper. And it’s now back at its IPO price. Maybe not that lucky at all.
I just took a small position in APAC Realty at $0.885 after seeing its huge price drop over the past week even though it has reported a strong Q1 with a strong pipeline of launch in 2018. Not sure how it will turn out but I smell opportunity.
Chanced upon Celgene (CELG) as I browsed through Motley Fools Stock Advisor/Rule Breaker page. The counter is bashed down after the delay of the approval of Ozanimod which the company will re-file in 2019Q1 and expiration of Revlimid’s patent by 2022. Looking through the transcript and various opinions, I decided that the depressed price of US$76.83 provides a good opportunity to grab a very small stake in the company as a learning experience of biotechnology company.
Last purchase for the month will be for FLT’s rights. Will subscribe for entitlements and hopefully can get some excess rights.
CPF Portfolio
After a decade, I finally added a third stock counter* to my CPFIS account – VICOM. With a strong balance sheet and a possible upturn in its business, I believe it can at least pay a dividend of at least $0.30 (2017 – $0.36) for the next few years. That will give me a yield of 4.9% based on my purchase price of $6.08 which is better than the 2.5% given by CPF.
* Before VICOM, I bought STI ETF from 2014 to 2016 as it is not subjected to the 35% stock limit.
Towards Financial Independence 