Portfolio Commentary: April 2019

STI (ES3) returns: 3.087-> 3.4150,10.63%
HSI (2800) returns: 25.25-> 29.85, 18.23%
S&P Index returns: 2447.89 -> 2945.83, 20.34%
Current Portfolio return: 30.65%

Portfolio return includes only stocks. With bonds included, the return is about 22%.

Transactions made:
-complete divestment of Innotek, at $0.565 and $0.585
-partial divestment of Xinghua Port Holdings, at $1.62
-small amount of Singapore Savings Bonds.

Innotek is now fairly valued at about $0.60 this week. With a low dividend return in mind, it is fair to divest. To be fair, at the price I got, the dividend rate is 4.46%. I believe the dividend would be raise in the future (better profitability and because management has skin in the game). At about 70% capital return, it is fine to sell, I guess.

Xinghua Port is partially divested for a strange but good reason: madness. The price surged from $0.90 to $2.1 at one point. By the time I managed to access my trading website, it was about 1.6-7. Made a mistake in keying in the order (as I was at work, heh) and sold it at $1.62 instead of $1.72. On hind sight, it was a good choice as the price plunged back to 1.2-3 in short order. Estimated capital return was about 55%, and I sold about 2/3 of the stock I had in XHP.

The daily, technical chart explains how crazy it was.

April was an extraordinary month. Never expected it and probably won't not be repeated.

***

Attended the Or Kim Peow (OKP, SGX:5CF) annual general meeting recently. It was a very small affair with less than 20 investors in attendance. A pretty ballsy investor was asking tough questions and the directors did not respond in an overly-defensive manner. Overall, I did not find anything that I have to be worried about.

***

I was surprised to read that S&P has hit an all time, historic high. With the number of worrying news at bay, it was a climb that eluded me. I remember one of my instructors in the past commented that "there is always something to worry about." A proper value investor should never be bothered by the market and just grind away, looking for deals. Some folks at GMO would not subscribe to that, but I do.

Until then..