From the fun exercise of constructing a football team of stocks, I realized that I might have been too defensive in my portfolio to my own liking. Hence, I decided that I will tweak my original income/growth portfolio ratio of 60/40 to a more adventurous 50/50. This also fits into my emerging strategy of investing more in overseas stocks which primarily will be growth stock.
With the decision made, I divested a few reit/dividend counters and increase my positions in overseas counters.
Frasers Logistic Trust
Decided that I like MLT and MINT a bit more for logistics/industry REIT, so divested FLT completely. Including dividend, made a gain of 6.5% since my first purchase last February.
The group has some exciting new names and has been consistent in its dividend payout. I still like it but just not as much as the others, so divested for a gain of 9.9% since my first purchase last June.
Continue to like its cash generating ability but with limited information from how the group is going to use the cash, I decided to reduce my stake and took a loss of 13.9%.
Sold the stake that was bought at $0.800 in July for a 1.7% gain. Still positive about its dividend but decided to reduce my stake after two consecutive quarters of lower revenue.
Arista reported another strong set of data in its latest quarter. Soon after that, it settled a case with CISCO with a large payment which will put a dent in its balance sheet. However, with that settled, the cloud is clear and more can be expected from the group going forward. I am positive of its prospect, so added more at US$271, bringing my average price to US$265.
Tencent reported a weaker quarter with its first declining profit for decade causing its shares to plunge more than 10%. While short term, it might continue to face some headwinds in regulatory of monetizing its games, I am positive of its mid- and longer term prospect. So decided to add more at HK$336, bringing my average price to HK$387.
Booking reported another strong quarter and also provided another conservative guidance for its next quarter. As per usual, the market does not like its guidance and sold down its shares. Took the opportunity to add a few more shares at US$1858, bring my average price to US$2005.
JD continues to report good growth in revenue but it has a widening loss for Q2. However, it looks like it is generating sufficient cash to support its expansion. Added more at US$32.6, bring my average price to $41.
A strong growth in its top line in Q2 but declining profit due to increase in distribution cost primary due to advertisement. Foreign exchange rate for the currency in the countries that it is operating continue to send jittery to the market.
I see the lower profit for Q2 as a temporary issue and currency exchange rate can go both ways. As long as there isn’t a major war, it should be within acceptable range. So added more at $0.55, bringing my average price to $0.64.
hi KC…I am increasingly concern on their forex losses. Even though 2Q top line is growing esp in Indochina market, the usd2mill forex losses just dragged down the overall results. Going into 3Q, the forex losses may be even greater as rouble has weakened to 67 to one USD. That is almost 10% down from Q2. Unless the management can show some concrete ways to mitigate these forex risks, I will not be adding more for the time being.
Hi, thanks for your comment. Forex has always been the key risk for FE. Its been like that since they are listed. And that’s the key cause of their loss in 2014 during the Ukraine crisis.
I am glad that they learned from the crisis and started to diversify since then, In 2014, Russia, Ukraine and region accounted for about 85% of their revenue. Fast forward to 2017, they occupied 65%. Still huge but I think they are doing a good job since the lower percentage is achieved even when these markets are growing. Going forward, I think it will continue to decrease.
So, yes there will be some pressure from FX but it could go the other way.
I am not going to predict its direction since that’s really beyond me. So I am ok with the current fluctuations.
Having said the above, I probably will cut loss if the region faced another major crisis.