What I bought in the June Rally

I got an interesting question from a reader of my previous post about – “Did you buy anything in June then?”

Yes, I did actually.

I subscribed to Astrea V IPO and managed to get a few lots. It debuted above the 3-4% IPO price which was great. I look forward to its 3.85% coupon payment every few months.

I also bought DBS 4.7% Preference Shares at $103 per share. It came down from $105 after the last coupon payment. At $103, it will deliver 4.56% yield to me. Close enough to 5%.

Yes, I am loading up on bonds => need to diversify mah …

Hmm, what else? … I continued to accumulate Eagle Hospitality Trust at 70 cents. Are you shocked?

Well, as shared previously, I think it is a okay risk to take at 70 cents, which is 10% below their IPO price, expecting to deliver 9% yield and trading at P/B ratio of 0.8.

On Friday, DBS announced that it has ceased its stabilising action now, so let’s see how Eagles’ share price will perform from now onward. I think it will drop further. If it drops drastically, I will pick up more but only at smaller quantity each time. I am also scared.

By the way, DBS is now a substantial shareholder of Eagles Hospitality Trust. I believe it is holding about 10% of the Trust. As an underwriter of Eagle’s IPO, it had to buy up the unsubscribed shares at IPO. In the last 3 weeks, it bought up even more shares to stabilise Eagles’ share price.

I hope Eagles will eventually reward me (and DBS) for our trust. 🙂

I also had my first deal on MoneyOwl going through after some initial hiccups. Their setup is still very clumsy but their marketing guys were earnest enough to convince me to keep faith with them. Now that the first deal is done and it works, I may load up more. You can read more about MoneyOwl here.

Talking about regular investment, I am a bit upset that Maybank KE has stopped their monthly investment plan in June without giving us a good reason. I really felt left hanging in the air now … sigh. I need to look for another way to do (… brainless but disciplined… ) monthly investment in ETFs. I feel there is a need for all of us to have such discipline in investment. The key I have learned over the years is to stay invested and continuously look for gems in the market.

Any good company to recommend for monthly investment?

So, while I sold, I also bought. How about you? Happy to hear from you soon

Have a great investment week ahead.

Regards

Warriortan

 

 

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4 thoughts on “What I bought in the June Rally

  1. Hi warriortan, i am just curious why you would want to invest in dbs 4.7% preference where call date is in nov2020. Do you forsee dbs might delay call date?

    Liked by 1 person

    1. A honest answer is that I didn’t check. Thanks for sharing this info with me. Now I want to reconsider. I don’t think DBS will delay the call date as it is probably capable of getting fund at lower rates that 4.7%.

      Like

      1. Anyway, there are remaining 3 coupon payment. Nov19, May20,nov20. If you hold until maturity and DBS redeem at par, you still will not lose money.

        Liked by 1 person

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