Fickle Mr Market

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Time flies, it is almost a month since my last blog.

The last few weeks have been very busy, particularly for work. I am happy to be able to bring a project to a reasonable milestone. But we all know its only the beginning. It will be tough days ahead. Well, let’s celebrate first and slog later :-).

Chinese New Year festivities also meant a hectic few days.

ChemPlant

Finally now I got a chance to take a week and a half off to help a friend with his project and to spend some time with the kids in this one week school holiday. Just a bit more about helping my friend, it felt great to be able to put into use my engineering learning, knowledge and experience gained over the years to help him evaluate a complex deal. For those who could appreciate, it was great to dust off my Perry Handbook (Yes, I still kept it), to open and use it again 🙂

Perry

However, in between I also felt apologetic to my readers and fellow bloggers for not contributing to the investment blogging world actively. I see about 20 readers who click into my blog daily but they were probably disappointed each time to see that there was no new blog. I will try to be more active whenever I can.

There are also 5 new subscribers in the last one month – thank you for joining and happy to have you with us.

So, what have changed in the last one month?

Since that “bloody” week, Mr Market seems to have changed his mind again and went on a rally. As I typed today, Dow has regained 50% of the loss, S&P 500 66% and the best to come, Nasdaq has even surpassed its previous record to hit a new record yesterday. What a change! We haven’t seen such volatility and fickleness for a long time. For the newer investors, this must be a good lesson and experience … how to ride through a sudden dip. First thing that most seasoned investors will say is “don’t panic” … haha easier said than done. Even most seasoned investors would feel a sense of insecurity when it happened. But in reality if you had done your homework, then hold on to your faith and ride it through. And if you have cash, better still, use the downturn to buy more quality stocks. And that’s where the “war chest” touted by many investment bloggers as a “Must Have” becomes so useful. Again doing your homework well is critical as such sudden dip goes as fast as it comes and if you miss it, you will need to wait for the next opportunity which we do not know when it will come again.

(By the way, you may find this blog a good read: What Gambling Reminded Me About Investing?)

In the last few weeks, besides swapping as I shared in my previous blog, I have also bought additional shares when the market looks weak. Just nice, i got my year end bonus in Feb and I literally spent all of it in the market.

Interested to know what I bought? …

(1) Starhill Global Reit (Projected Dividend Yield: 6.5%* from StockCafe) – I think it is a decent buy at current price assuming the dividend yield can be sustained. Its current share price is also significantly below its book value. Sleepdevil wrote a very nice blog on Starhill Global Reit: SGR’s Analysis (FA, TA) – Buying some dustbins in Wisma

(2) Frasers Property (5.0% Yield) – I was fortunate to accumulate some at $1.90. I like this counter a lot. Like Capitaland, it has the Frasers’ suite of Reits which offer good and reliable recurring income.

(3) Thai Beverage (3.0% Yield) – I think the market has been overly harsh on this company. I am accumulating it now. Like Singtel’s takeover of Optus many years ago, if you want a sizeable stake in a new market, you just have to pay through your nose. Like my business lecturer shared his views on Singtel’s case then, buy also die, don’t buy also die, so buy lah and maybe you have a chance to make it work. I think the management of now a larger Thai Beverage knows what it is doing and is confident of turning it around. KPO and CZM wrote a nice blog on this a while back: ThaiBev

(4) QAF (4.5% Yield) –  I have been accumulating QAF for a while. I bought additional shares at current price as I think the selling is overdone. The selling accelerated recently when it was clear that it is facing keener competition and cost pressures. In last financial year, with almost the same revenue, its profit attributable to shareholders plunged by 74% to S$29.7 million. Nonetheless, I still share the confidence that QAF’s management should be able to tackle the company’s issues with cost and operational efficiency. Something to watch in the coming quarters. Read this from the Guru, AK : QAF’s earnings down but cash increased. What is this?

(5) Netlink Trust – for that stable 5% dividend yield.

Hope the above provides some inspiration for you as much as other investment bloggers have inspired me with their diligence in searching for market gems and investing consistently and faithfully through peaks and troughs.

Have a great investment week!

Mr Market

 

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