Saturday, January 31, 2015

Jan 2015 Portfolio

Well, its the first month of 2015, STI started the new year 2015 with a big bang! And its not good too, on its first trading day, STI was -40 points. That was caused by oil price dropping below US$50 and Euro crisis with Greece threatening to exit Euro. And adding more oil to the fire, Switzerland suddenly announced that they are not pegging Swiss Franc to Euro, causing a big hoo-ha in the market. Well, not a good start for the stock market if you ask me. And that's just the beginning of the month. Near the end of the month, we have ECB announcing their QE plan which send Euro down and stocks up as investors are busy snapping up stocks. Pretty volatile month for the start of 2015. What a roller coaster ride, not for the faint hearted :)

This month I added Sabana Reit into my portfolio.
Sabana Reit has high dividend yield, low PE 9, below NAV. It was being sold down quite a lot when they issue placement share at below $1, this caused their stock price to plummet down quite alot. I think it is looking attractive now with its high dividend payout and low PE and below PBR. So let's include it into my portfolio :)

I now have 2 REITs in my portfolio which form about 18%. The next stock I am going to buy will be a non-REIT so that I will be getting my ideal sector diversification of having 20% REITs and 80% other stocks.

Also added CDW which is a semiconductor company with low PE 7, low debt and below NAV with high dividend. I have been monitoring this stock for a while and seems like there was some interest lately with a sudden increase in volume. Could be some smart money buying. Anyway it has been in my watchlist for a while so decided to buy first. Also with the rising USD, this stock will benefit because it is paying out dividends in USD. Overall it seems like I am quite heavy in the semiconductor sector. Will be taking note not to buy too much into this sector to reduce my risk.

STI vs my portfolio

This month, I beat STI! Just 3 months time haha. All thanks to my newly added CDW which surged up by 13%. No thanks to 2nd Chance which was bought last month. Right after I bought it, 2nd Chance released news that due to some issue, they have to terminate the disposal Of their properties To Celestine REIT. What was supposed to be a good news just turn out to be a bad one. This caused the stock price to drop by as much as 16%. Bad timing :( Or rather can anyone time the market? Looks like we are in a bull run now after announcement of ECB QE, there was a broad based recovery at the end of Jan 2015.

PeriodSTIMy Portfolio (Realised)Verdict
Jan 20152.71%3.21% I win

Total 9 stocks in portfolio

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