I have been relatively inactive in the market after I had set my mind for next year’s plan. With the latest quarterly reporting almost done, I made some minor adjustments to my portfolio.
I decided to fully divest Docusign, Roblox, Twilio and Upstart. I did not clear out these four during my April’s clearance to build up my cash buffer. If I had done so then, I would have received back a bit more. So why now? The trigger is due to Upstart’s continued struggle in this market. For the second quarter in a row, it reported much worse numbers than expected. While it might still work out in the future, I decided to let it go for the moment.
That led to me checking up on the other few counters and it was then that I realised that Docusign CEO has left the company in June. While I did not like its poorer performance in the last quarter, I like it that he was upfront and acknowledged the problem faced by the company. So I thought he would continue to resolve the problem. Again, I do not know if it could turn around in the future but I just went with my heart.
As for Twilio and Roblox, both continue to look fine, especially for Twilio. Yes, both are still burning cash but other metrics seem alright. But since I am tidying up my portfolio, I decided to let these two small positions go too. In total, a 15k loss in these four investments.
I decided to buy more of HRnetGroup with part of the sales proceed. HRnetGroup has reported a good quarter and declared an interim dividend of 2.13 cents! Based on my short conversation that I had with the CFO in March, I am confident that they are going to continue to declare interim dividend going forward when they are doing well. If they can sustain the final dividend of 3 cents, then that will be a total of about 5 cents per year, which gives a dividend yield of 6.4% based on my purchase price.
With the above sales and purchase, my portfolio now consists of 35 counters which I am quite comfortable to hold on to, no matter the market’s gyration. I have yet to decide what to do with the dividend received for the quarter yet. On one hand, I would like to plough them back to generate more dividend but on the other hand I am thinking if I should just have a larger cash buffer. Well, I will just sit on them for a while first.