Thursday, December 30, 2010

Updates of my portfolio & Keforex

Updates: Sold off my 3 lots of SATS @ 2.88
High volume for Fuxing today, breaking the 0.18 resistance. This S-chip is gaining attention.

In my last post, I recommended KeForex, a new forex trading platform. As I'm leave today, I spent quite a while trading virtually and I learnt a few things...

First, I must say that KeForex is an impressive platform, easy to use and also pleasing to the eye. Technical analysis are available and easy to activate.

Forex is definitely a very fast and easy way of making some cash, however, it is also likewise for losing your capital. Keforex does not charge commissions but earn via the difference in the pips, called the spread, between the currency pairs. Currency pairs with smaller spread include the USD/CHF, USD/JPY, GBP/USD etc, while the currency pairs with higher spread include USD/SGD, EUR/AUD, GBP/AUD. This difference will affect your profit thus beginners are always recommended to try out currency pairs with smaller spread.

As I'm still relatively new to Forex, I'm unable to say much about the trading. However, I must say that I have made a 10k virtual profit with the 50k virtual capital in one day!

Please try it out if you're interested! & any readers out there can recommend me books/websites to read up on Forex?

Sunday, December 26, 2010

KE Forex Demo

Other than stocks, I am quite interested in trading Forex. As such, I found a Forex Demo from Kim Eng, the same company that I use to trade stocks. It has a nice, simple interface which like its stock trading platform, is the most user-friendly in my opinion. Trading Forex is unlike stocks as it is a 24hour market due to the different currencies being traded all around the world all the time. As I learn and read more about Forex, this platform will allow me to paper trade before venturing into the actual forex trading.

For like-minded individuals, do try this platorm out!

Saturday, December 25, 2010

Pre Christmas Thoughts & Trading Activity

Bought 3 lots of SATS again at 2.80 last week.
During this whole week of light trading, it went back up till 2.86 before closing at 2.84 on friday afternoon.
I expect the interest in this stock to rise again once the holiday season is over after the recently concluded stake in TFK.

Slowly but steadily, Fuxing has been creeping back up to close at 0.175 on friday. The company recently announced that it will acquire 3 profit making companies which also helps in their vertical integration to become a fully integrated zip maker and to increase it profit base. With strong results reported months ago, together with its a strong financial position, I expect Fuxing to grow!

Lastly, Merry Christmas to all readers! Have a good one

Sunday, December 19, 2010

Happy Holidays! Not forgetting a pre-2011 watchlist..

Sold of my 3 lots of SATS at 2.88 for 2.92 on contra for a profit of about 50 bucks.
Loaded 3 lots again at 2.80 before friday's close.

My current watchlist includes GMG, Capmallasia, Comfortdelgro & Straitsasia.

The problems in ivory coast resulted in a fall in GMG's price after a good start to the week. However, I feel that these problems are short term. Once the situation stabilizes and with rubber prices maintaining or even hitting new highs, high rubber prices should be here to stay.

Capmallasia fell to its lowest ever by closing at 1.84 on friday. Still researching on what could have caused this though it looks like a good price to enter.

Also currently researching on comfortdelgro. Looks very undervalued and with the recent news of it starting bus services in australia, looks like a good stock to keep on the watchlist.

Straitsasia have fallen from a high of 2.90 to 2.40 on friday. Looks very oversold and with coal prices also staying high in years to come, it may be a good time to enter.

As the holidays approach, trading volume falls and people start to take profit. This may be a good chance to enter stocks on your watchlist.

Last but not least, merry christmas & a happy new year!

Monday, December 13, 2010

SATS- Buy calls from Kim Eng, Philips

Just sold my 3 lots of SATS today before noon break @ 2.92
Profit of about $60
Total Profit up till now: $440

Will load again when it hits 2.85-2.88

Back to the topic,

SATS announced on 29 Nov 2010 that they will pay ¥7.8billion
(approximately S$122 million) for a 50.7% stake in TFK Corporation (TFK) from Japan
Airlines (JAL). According to a news report on 15th Sep 2010 from Airportbusiness.com, the original price tag for JAL’s 51% stake was 10bn yen. The price paid by SATS is 22% off the rumored price.

According to the company website, it is stated that TFK
provides 15mn meals annually (as compared to 24.5mn meals by SATS from Oct 09 to
Sep 10) and employs 1,125 employees. They have customers from more than 30
international airlines and operate with its HQ in Narita International Airport & Tokyo
Haneda Airport. TFK was established in 1959. In the same article from
Airportbusiness.com, TFK was reported to have annual sales of 22.5bn yen
(approximately S$351mn) in fiscal 2009. SATS had disclosed that they do not expect
material impact to the earnings and NTA of the Group for the current financial year ending
31 Mar 2011, as the acquisition is expected to be completed in Dec 2010.


Quoted from Philips Securities:

• We do not think SATS overpaid for the stake based on currently available
information.
• No revision to earnings estimates due to lack of information at the moment.
• We view this acquisition positively as it allows for geographical diversification within
the company’s area of competence.
• Estimated 13% increase in share of sales from overseas by FY12E.

Quoted from Kim Eng:


The acquisition, which is still subject to closing conditions, is expected to be
completed before end‐2010. Assuming no change in FY11 and FY12, we
estimate TFK may add about $7m (about 3%) to SATS’ earnings in FY12.
There could be upside to these estimates once SATS gets to work on
integrating TFK’s operations. In addition, the planned revival of Narita and
Haneda international airports, if successful, could boost prospects further.


Assuming SATS uses all‐cash to fund its TFK acquisition, it will still have net
cash of $60m left over. As at September 2010, it had $182m in net cash. In
addition, it has plenty of long‐term credit facilities to tap on, including a
$500m medium term note programme and $200m revolving credit facility,
thus giving it a potential warchest that exceeds $700m. Its existing core
business is highly cash‐generative with a short cash cycle of just a couple of
weeks as well as low capex of $50‐70m pa.



Philips Securities maintains BUY recommendation with target price of S$3.21.
Kim Eng maintains BUY recemmendation with a target price of $3.48.


Youthvestor: Changi Airport may see a third baggage carrier, thus SATS acquisition of TFK allows it to diversify its operations, it could boost its overseas revenue to cover the potential competition in Changi Airport.



Sunday, December 12, 2010

Portfolio as of 12 December

Sold gentinghk @ 0.455 5 lots
entered sats again @ 2.88 3 lots
XD for sats 5 cents dividend

Total profit as from September 22 to December 12: $380

5 lots fuxing @ 0.18
5 lots jes @ 0.36
3 lots sats @ 2.88
1 lot sabanareit @ 1.05
8 lots mapletreeind @ 1.16

Tuesday, December 7, 2010

Bullish end to 2010

Sold off my stakes in SATS 3 lots @ 2.89 due to the incoming news of a 3rd baggage handler at Changi airport which may reduce SATS market share
tidy profit of about $320 including the 5 cent dividend


Bought one of my watchlist stocks genting hk @ 43.5cents. Time for a rebound to the 52cents high


Meanwhile, JES hit a high of 35.5cents today after announcement of 6 more new contracts. Hopes it break 36cents soon! Closed at 0.345 instead


To add,  quite a while ago I got 1 lot of SabanaREIT @ 1.05 via IPO :(

Sunday, November 21, 2010

Stocks to keep a lookout this week

Hu An Cable: This stock has fallen behind its IPO price. With a recent 4.22% stake bought by SEAVI from Goka, shows confidence in the company. With strong growth and profit, I see the stock rebounding soon.

Genting HK: Went up to a high of 53cents in the past month but has since went down together with Genting SP. When the SGX soars again, Genting HK will follow.

Not a good week, my only share in green fell to cost price after XD and a poor week overall..

Wednesday, November 10, 2010

Pending IPOs

October went by with at least 8 IPOs. Well it's just going to get better isn't it. Mewah and SabanaREIT's both seeking to list on the SGX in time to come. Both of these IPOs will definitely interest most investors.  


For Mewah, its looking to list at a price of $1.25 to $1.55, with about 35million shares issued to the general public for ballot. With the recent price increases in commodities, I think Mewah will be well oversubscribed come the IPO date.
For more, go to http://www.reuters.com/article/idUSTRE6642OB20100705


SabanaREIT's REIT manager forecasts a distribution yield of about 8.02% for next year and 8.05% for year 2012 as written in the Business Times (or 8.45%  for next year and 8.48% for 2012" written in the Straits Times). The REIT will be priced between $1 to $1.10. Apparently this REIT holds some $850 million worth of 15 industrial properties in Singapore, making it the world's largest Reit by asset value. One thing worth noting, Freight Links Express Holdings has a 51% stake in the Sabana Investment Partners. Will it rise when Sabana successfully lists on the SGX? Well, Freight Links rose from 5 cents to about 9 cents in the past month.
For more, go to http://www.businesstimes.com.sg/sub/news/story/0,4574,412539,00.html?
                            http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_601475.html


Also, Fuxing yesterday announced better than expected results, a 129% net profit growth to 22.7million. Hoping for a good dividend come 4th quarter results!

Saturday, November 6, 2010

Lessons learnt as a new investor

In the first month, i made many bad decisions which resulted in quite a high unrealised loss.

First, DO NOT ACT ON IMPULSE!
I remember the day when Mapletree Industrial Trust started trading on the SGX, i went straight in to buy at a high price of 1.19 a few minutes when trading began thinking that it will do as well as GLP on the first few days. After those few minutes, people started taking profit and the price has yet to reach back to that price.

Second, DO NOT FOLLOW THE TREND! (unless you are early!)
I bought my current S-chips at close to their peaks. Since they are the first shares i bought, i bought them without doing much homework, but bought them based on reading forums and articles by others. Looking back, when i checked the graph for JES international, I got a rude shock that i bought it after the big jump in price where the company was queried by SGX. Lucky for me, the share seemed to have gained momentum the past week and hopefully it can soar further!

Lastly, DO NOT BE GREEDY!
Riding on the IPO fever, i bought Mapletree Industrial Trust at a high price of 1.19. Best of all, i bought 7 lots, which cost quite a lot considering my current income only comes from my NSF allowance. When i queued for 7 lots, i thought i could make a quick buck. Thinking back, if i weren't that greedy in the first place, i would have a better positioned portfolio than now.

However, one should not whine and harp on what has happened. Instead, one should learn from their mistakes and do better in the future! Hopefully the week ahead will be as good or even better than the last considering DOW did pretty well on Thursday.

Current Portfolio on 6 November 2010

Date Bought Name                           Qty           Avg Cost     Last Price     %Profit/Loss
22/09/2010 Fuxing China                 5000          0.1854             0.16           -13.72
28/09/2010 JES International           5000          0.36                  0.345         -5.62
15/10/2010 SATS                           3000           2.8304            2.90             2.46
21/10/2010 Mapletree Ind Trust      7000           1.1944             1.1             -7.91
21/10/2010 Mapletree Ind Trust      1000           0.932               1.1             18.06

The Start

Currently only 20, i hope that investing can provide me with another source of income. Started investing in equities just only a month ago, my portfolio now is seeing improvements as i seek to learn from my mistakes in these early days of investing. My current portfolio includes 2 local and 2 S-chip stocks which i see growth in.