Portfolio @ May 2018

May

Before I begin with my regular portfolio review, I would like to welcome the 7 email followers who subscribed after my last post on CPF Hacks. That single post garnered over 10k views, almost doubling the blog’s lifetime views over the course of a few days. Thank you for your support of this tiny blog and letting me know that I’m writing something worth reading.

Here’s my portfolio as the end of May 2018:

SG StocksUS Stocks

Portfolio Value

Committed cash relates to funds used for the Fraser’s L&I Trust PO

Performance Indicators / Dividends

  • YTD Time weighted return: 0.33%
  • Dividends collected: $917.76
  • Upcoming Dividend Receipts:
    • Frasers Logistics & Industrial Trust: SGD 645
    • SingTel: SGD 652.70
    • Bank of America: USD 16.80

Commentary

Sell in May and go away

This age old investor adage proved true this year. With increasing geopolitical risk thanks to the Trump circus and their crusade against world trade, and Italy’s government (or the lack of it) woes, we face another sad month in the markets with losses largely driven by declines in Keppel Corp and Singtel. That said, that didn’t stop me from making big moves this month. After all, stocks do get cheaper in a downturn. Will June be better? Or will the market decline during the World Cup (apparently that’s a thing)? We shall see.

Transactions for this month

This was another transaction heavy month as I continue my pivot towards income and bidding farewell to more US stocks.

Purchases:

  1. Bought 15,000 units of Frasers Logistics and Industrial Trust (SGX: BUOU) ahead of the preferential offering as mentioned previously. Subscribed my 1,500 unit entitlement and applied for excess 6,500 units. I personally don’t expect to get much excess units, if any, given the intense interest in the REIT. Going forward this REIT will be a substantial driver of my passive income.
  2. Bought 1,000 shares of SingTel (SGX: Z74) after yet more selling pressure from institutional investors after earnings. The earnings itself was ok in my opinion, given regional associate troubles. The commitment to maintain a 17.5 cent dividend for the next 2 years was welcome too. Where the bottom is, I do not know. All I know is I’m buying a best in class telco with a decent yield. Will look to add again if it reaches the $3.00 – $3.10 range.
  3. Bought 80 shares of Micron (NASDAQ: MU) as a small speculation. Analysts are signalling doom and gloom for NAND and DRAM prices, I’ll take the contrarian trade as I feel with demand for chips should still be strong. The company also upped guidance for the year and instituted a monster buyback.

Sell transactions:

  1. Sold Frasers Commercial Trust largely to fund my Fraser’s L&I purchase. Trading in a sub par commercial REIT for a better quality one makes sense to me. That said, those who have a greater patience than I can consider FCOT at its current price as it has crossed the 7% yield threshold recently.
  2. Sold Lockheed Martin and Raytheon largely due to poor price action. I remain bullish on the US weapons manufacturers as a whole, but short term this sector should be under pressure due to confusing guidance and trade war related issues. Divested also mainly to concentrate funds in more important positions.
  3. Sold Walt Disney. This one pains me, as I really love their Marvel and Star Wars films, but this has been a big time under performer for me and with the continued uncertainty over the Fox deal, I really don’t feel like waiting around for this stock. Should I have sold sooner? Probably. I kept this around largely for diversification and love of the company, but at the end of the day, stocks are just pieces of paper.

Here’s to a better June.

Happy Hunting,
KK

Information presented in this post is for general information and educational purposes only. It does not constitute a call to buy or sell any stocks. Do your own due diligence, invest carefully and wisely my friends.

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