Tuesday, 1 June 2021

May 2021 Updates

May 2021
 
Local Portfolio Value after market close (excluding USD and HKD)

S$143,524.80

Purchase

MSFT @ US$245.90
AAPL @ US$126.70
BABA @ HK$220

Sold

None

Dividends
 
DBS @ $108
Suntec Reit @ $81.80
 
Total: $189.80

Short-Term Transactions

1 x expired PINS Put 210521 58 with $1.07 premium
 
Closed early for 1 x PLTR Put 210521
 
2 x expired PLTR Put 210514 17 with $0.55 premium
 
Sold 1 x JD Put 210625 69 with $1.14 premium

Summary

03 May 2021 STI Open: 3,184.76
31 May 2021 STI Close: 3,164.28
 
As a guidance for my investment plans, I mentioned in my last update that I would place closer attention to this month for the market's reaction to the rising cases of local Covid-19 infections.
 
STI closed below its monthly opening for the first time after four consecutive months of rise since the start of this year.
 
Beginning of a drop? I think it's still early to say but it's good to have some spare funds ready to capture any opportunities that might arise.
 
For my SGD portfolio, value dropped by around $3.5k with no transactions done. 

Also received some dividends from DBS and Suntec Reit this month with more to come in the next. 

Spare cash is still not fully utilised yet. Awaiting for opportunities, including rights issue which we might see a few in the coming months. 

There are a few bright spots among the counters in my SGD portfolio. 

1) I am really glad to see MNACT's continual foray into the Japanese market with their latest acquisition of a freehold office building in Tokyo which is expected to be DPU-accretive. 

This will continue to reduce their concentration risk with Festival Walk. 

Post-acquisition, the Japanese assets will comprise about 27% of the trust's net property income. 

However apart from the rosy side of things, I will pay more attention to the gearing level of the trust since this acquisition will be partly funded by debt. 

Overall I must say I am pleased with MNACT's direction so far. 

2) For the long timer in my portfolio, SingTel, it has quite a number of happenings in recent times. 

Firstly, the new CEO announced the new strategic direction to drive the company forward. 

Secondly, there is a voluntary tender offer for its Thai subsidiary, AIS.

It is nice to see offers like this to unlock value be it for the subsidiaries or fixed assets.

Competition in the telco market is getting stiff. ARPU are getting lower.

To regain the former glory and to achieve greater heights, the way I see for SingTel to move forward is to transform itself into a technology company.

Of course the telco business is still an essential and defensive one that SingTel should continue with. There are so many things that can be done using 5G technology for the IOTs. However tech-based business should be the main driver for the company moving forward.

By the way SingTel is the first to launch a standalone 5G network in Singapore recently.

It's great that SingTel has gotten the digital banking license. Enormous potential there as a revenue driver and a tech-based one at that. However the new business takes time to gain traction and that is one of the reasons why I am holding on to my SingTel shares.

I can write a whole thesis on this but that will be on another day.

The new strategic direction focusing on three main tenets actually partly resonate with my views above for SingTel's transformation.

The first tenet to realign its core business towards capturing 5G market share and the second which is to develop new growth engines in ICT and digital services are good drivers in my opinion.

However I would very much like to see SingTel becoming another SEA or Grab. These are companies truely leveraging on technology to provide services to the mass market.

Just look at Grab. It is no longer a car-sharing platform. Rather, it has gone on to build an entire ecosystem of its own including payment service, loan, insurance, food and document deliveries.

The third tenet to unlock the value of its infrastructure assets is timely and logical for funding of the digital banking venture.

I suspect SingTel will reward shareholders in the form of special dividends too. Fingers crossed.

For my Syfe Core Growth portfolio, I am seeing a small positive return so far. Would be more meaningful to see the returns and review the portfolio when it turns one.
 
Have DCAed into this portfolio yesterday and plans to continue this strategy every month end.

For my USD portfolio, I have not done any intraday trading this month.
 
One of my counters briefly hit 'freehold' status before dropping slightly. As of now I am sitting on 81% gain but that is all on paper.
 
Collected S$372.70 of option premiums this month with the expiry of 3 Puts and early closure of one in Palantir and Pinterest.
 
Other than these, I have sold another Put this month for JD.com, expiring 25/6/2021 with a strike price of $69 and premium of $1.14.
 
Lately it seems harder to find decent premium in the options space but that is probably due to my style of only trading in companies that I don't mind holding.

Moving forward I will continue to use options as part of my investment / trading tools to augment my investable income. 

No, have not touched cryptos yet.
 
That's it, a longer update than usual. Got all excited whenever I write about SingTel.

Friday, 28 May 2021

The King: Eternal Monarch (Drama)

One of my favourite moments when the kids are not around is catching dramas with wifey.

These are our rare 'we' time together.

Over the years we have enjoyed and finished a number of dramas, mostly kdramas including the more well-known ones such as Descendents of the Sun, Itaewon Class, Crash Landing on You and Dr Romantic (Teacher Kim) Seasons 1 & 2.

So just now we finished another one called The King: Eternal Monarch starring Lee Min-ho and Kim Go-eun.
 
 
It is a romantic thriller adventure set in parallel worlds as the back drop. You can check out the synopsis here.

Apparently this drama is not very well-received in South Korea but both wifey and I enjoyed it. If I have to give it a score, I would say 7.5/10.

Well, dramas are like food. Is subjective.

For now, we have already found our next drama to spend our 'we' time on - Vincenzo.

Cheers.

Wednesday, 19 May 2021

New Money Box for the Kids!

One thing I like about moomoo is the ease of earning points for redemption of their cute products.
 
It only took me slightly over a month since my account opening to accumulate the required number of points for this cute peripheral product.
 


 
 
Trade-wise, I only bought some shares of AAPL, MSFT and 9988 BABA to date. I also wrote 3 puts on PLTR and PINS.

Apart from these, points were also earned by daily signing-in, sharing of quotes, reading of news, paper trading, posting of comments and some other stuffs.

It's that easy to accumulate the points!

Now I'm waiting for this money box to be delivered so I can give my kids a cute surprise.

Tuesday, 18 May 2021

Suntec Reit vs Ascendas Reit vs CLCT

With the recent dip in share price of the various counters in my local watch list, I began to monitor more closely and started to plan my funds around in case the opportunity to add arises.

There are plenty of counters that I would love to add such as Mapletree Commercial Trust, Keppel DC Reit and ParkwayLife Reit. Unfortunately these are over valued at the moment.

And there are plenty which I would love to accumulate more such as Mapletree Logistics Trust, CapitaLand Integrated Commercial Trust, DBS, OCBC, Mapletree NAC Trust, Netlink NBN Trust, Suntec Reit, Ascendas Reit and CapitaLand China Trust (CLCT).
 
All these are solid counters for a portfolio in an ideal world. Unfortunately in the real world, I am an ordinary person with limited funds so due diligence is extra important in my case.
 
Furthermore I have diverted a five figure sum to the US and HK markets recently so that left me with not much to take advantage of the dips in STI.

Of the above-mentioned counters, three of them have been inching towards my interested price points hence I decided to take a closer look and did some comparison as follows.
 
Note the data is garnered from the 1Q 2021 report of the respective counters and various sources found online.
 
 
Distribution Yield
 
Of the three, Suntec Reit appears to have the highest yield on paper. However notwithstanding last year's Covid-19, its distribution has been falling for the past three years and not without reason.

Ascendas Reit's dividend yield appears low at 3.9%. However that is excluded the advanced distribution which will be announced at a later date. Therefore the actual distribution should be higher or close to last year's figure.

If assessed purely based on distribution yield, I actually feel CLCT has the highest potential.
 
CLCT's distribution in this table is based on last year's figure since the distribution for this year has not been announced yet.

However during pre-Covid times, it has consistently hit 7% and above. Along with the new mandate, it has huge potential to go higher.
 
Gearing and Debt
 
Suntec Reit's gearing is the highest and is at a level which I'm not really comfortable with. As such it is also more likely to have rights issue in future.
 
Its financing cost is acceptable but its interest coverage is the lowest among the 3 counters.
 
Ascendas Reit performed the best in this area. Its gearing is only 38% with lowest financing cost and highest interest coverage.
 
CLCT has the lowest gearing among the three. Its financing cost is the highest but at an acceptable level. Furthermore its high interest coverage means no worries on the interests servicing.

Outlook
 
Suntec Reit's jewel in the crown has always been the office and mall segments where it achieved consecutive quarters of positive rental reversion.

For 1Q 2021, the office segment again proved its resilience.

Its venture into Australia seems to be an excellent move as well and has started to reap the rewards.

Unfortunately the good stuff ends here.

Contribution from the retail segment has fallen by 24.1%. The convention segment is worse at 47.1%.

For Suntec Reit, moving forward, a lot depends on how well and fast the retail and convention segments recover. Otherwise they will continue to be a drag on the overall performance with its effect cushioned by the Australian assets.

Recently it has been announced that Suntec Reit will be shifted from the MSCI Singapore Index to the MSCI Global Small Cap Indexes.

Frankly, I have no idea what the effect will be but I will continue to monitor this counter.

Ascendas Reit has always been a well-run business with high overall occupancy rate and well diversified tenant base.

With its recent addition of the European data centres and remaining 75% of Galaxis, it's exciting to see the future of this Reit especially these certainly won't be the last of their acquisitions.

Having said that, the diminishing demand for industrial space and overly supply might be a double whammy for all industrial Reits including Ascendas.

However the geographical and asset class diversification should soften any possible blow.
 
CLCT has a well balanced performance in terms of the various metrics.
 
On the macro front, its shopper traffic and tenant sales have improved tremendously YoY. Also, it has gotten rid of its most under-performing mall in its portfolio.
 
And all these are for the retail malls only which will eventually be reduced to 30% of CLCT overall asset mix in the future.
 
At the same time the most exciting development in my opinion is their new mandate of exploring other asset classes like business parks, logistics and data centres. The latter two are among my favourite asset classes by the way.

This is akin to unleash the rope that binds the feet of a fast runner. Suddenly he can run much faster and further.

Already, CLCT has taken a first step of adding business parks into its portfolio.

On the down side (and possibly up side), the portfolio WALE be it by NLA or GRI, is rather short ranging at 2 to 3.5 years.

If I remember correctly, this is by choice for flexibility in rental reversions.

Valuation and Growth 
 
In terms of valuation, P/E ratio is not really relevant so I gave it a miss.

Based on P/B ratio, Suntec Reit and CLCT are both trading below their NAV.
 
Ascendas Reit is currently trading at around 1.368 times P/NAV (NAV based on latest FY results) which is slightly higher than its 5 year average of 1.284.

All three counters are currently trading below their 20- and 50 DMA with a death cross forming recently for Suntec Reit and CLCT.
 
For potential growth, I did not use the DYG calculation this time unlike before.
 
But judging purely from the macro factors, asset mix and results of the respective 1Q 2021 metrics, here is my verdict.

Suntec Reit: To add only when extra funds are available
 
Ascendas Reit: To add with slightly more safety factor
 
CLCT: To add with slightly more safety factor

Friday, 30 April 2021

April 2021 Updates

Apr 2021
 
Portfolio Value after market close

S$147,010.00

Purchase

None

Sold

None

Dividends
 
None

Short-Term Transactions

GME PUT (closed), PLTR PUT (sold)

Summary

01 Apr 2021 STI Open: 3,181.68
30 Apr 2021 STI Close: 3,218.27
 
STI continues to close above its monthly opening for the fourth consecutive month since the start of this year.
 
 
This month's is probably due to the good results from DBS which in turn lifted the share price of the other two local banks as well.
 
I would place closer attention to next month on the market's reaction to the rising cases of local Covid-19 infections.
 
For my SGD portfolio, value increased by 2.25% though I did nothing to it this month. 

This is also largely driven by the rise in share price of the bank counters and partly offset by the fall in Reits.

Current spare cash level is about $10K, which I hope there are opportunities for me to plough into this SGD portfolio in the coming month. 

For my Syfe Core Growth portfolio, I am seeing a small positive return so far though it would be more meaningful to see the returns in the long run.
 
Have DCAed into this portfolio yesterday and plans to continue this strategy every month end.

For my USD portfolio, I have not done any intraday trading this month.
 
However I have closed the GME PUT that I wrote previously as an experimental first try. 

It is a good experiment with a small gross profit of 5.6% for a holding of about one month. I think what's important is the knowledge gained in this practical trading.
 
Apart from this, I have sold another PUT this month for PLTR, expiring 21/5/2021 with a strike price of $21 and premium of $1.01.
 
I think at this price point there is a sweet balance between risk and reward.
 
I have touched abit on this previously.

Moving forward I will continue to use options as part of my investment / trading tools to augment my investable income. 

And no, I have not touched cryptos yet though that was one of my investment aims set earlier this year.

It's tempting to read the enormous gains posted by others in online forums but I prefer to do more due diligence before going into that.

Will definitely update if I forayed into this area next time.

Thursday, 22 April 2021

Update to My moomoo's Experience

So previously I have opened a trading account with Futu SG to trade on the moomoo platform.

I was enticed partly by the free AAPL share and partly by the 90 days commission-free trading.

Last evening, I made use of the platform's in-built currency exchange to convert my SGD deposit to USD for one of my options tradings.

Although the 90 days commission-free trading doesn't include options trading, I was nonetheless impressed by the speed of the currency exchange.

All in all, it took about 1 min for the exchange to be completed. And the exchange rate I feel, is not too bad as well.

At the point of exchange, the spot rate was about SGD 3,000 to USD 2,258.

The rate executed in moomoo App for my exchange was SGD 3,000 to USD 2,250.73.




As a real life advantage of this fast exchange, I managed to sell the Put at the premium that I was considering. Because shortly after that, the premium for the same Put fell by about 6% and a further 3% at closing.

If you are interested, the Put I wrote is this:


Tuesday, 13 April 2021

My Review on the New Trading Platform, moomoo (Update)

When it comes to online and mobile trading platform for equities, ETFs, options and other investment products, we are clearly spoilt for choice here in Singapore.
 
From the traditional local-based brokerages to the foreign-based new entrants to our local scene, I can easily count at least 10 off my head right now.
 
One of the latest platforms that was recently launched in Singapore on 8th March 2021 is a one-stop investment platform, moomoo, powered by Futu Holdings Limited which is Nasdaq-listed.
 
And it's so apt that they chose to launch in Singapore this year since 2021 is the ox year in the lunar calendar.
 
  
 
At this point of writing, Futu boasts more than 13 million users worldwide with yours truly adding to the rank this week.

As of now, you can trade the Hong Kong, US and Singapore markets using the moomoo platform.

You must be thinking what is the difference between Futu SG and moomoo?

Futu SG is the brokerage and moomoo is the platform.

You will need to get a moomoo ID before you can open a Futu SG securities account to start trading. More details will be shared in the later part of this article.
 
And if you are still thinking about whether to sign up for a Futu SG securities account, here are some reasons that might help you in your decision making:
 
1) Regulated by the Monetary Authority of Singapore (MAS) 
 
Securities products and services in moomoo are offered by wholly-owned subsidiaries of Futu Holdings Ltd.

In Singapore, it is registered as Futu Singapore Pte. Ltd. (Futu SG) and is a capital markets services license holder regulated by the Monetary Authority of Singapore (License No. CMS101000).

That gives me a piece of mind. 
 
2) Low Trading Fees  
 
Low trading fees will continue to be offered after promotion period has ended - see below comparison.

3) Free Real-time Level 2 Quotes  
 
The level 2 market data comes with millisecond-level updates.

This is for the US market only which is one of the most traded market for Singapore-based traders.
 
 
4) Fast Order Placement 
 
Orders are placed as fast as 0.0037 s. That certainly provides an edge over other platforms with slower order placement. This is especially useful for volatile price changes often seen in the US market.

5) Good Customer Service and Support
 
Personally I placed a big emphasis on this area and I must say moomoo did not disappoint.
 
As a new user, you will need to get a moomoo ID first and use this ID to open a Futu SG securities account. After that you should receive an email informing you that your account has been approved. However I did not receive this email.

Nevertheless the moomoo's representative whom I liaised with helped to resolve this in a responsive and fast manner which impressed me.
 
6) Welcome Bundle 
 
I believe this should be appealing to most investors: Commission-free trading* for 90 days in US, HK & SG markets, SGD 30 cash coupon and one free Apple (AAPL) share.

* not applicable for options trading.
 
 
One important thing to take note on the welcome bundle is that it will end by 30th April 2021.

So do get your moomoo ID and use it to sign up for a Futu SG securities account before the end of April 2021. Once this is successful, you can proceed to deposit a minimum of SGD 2,700 within 45 days into your Futu SG securities account to qualify for the welcome bundle.

In my case I received the welcome bundle the next day after I deposited my funds.
 
 
Straightforward and easy isn't it?
 
It is the same for using the moomoo platform. More on that later.

Apart from the attractive welcome bundle, I have also done some homework to ascertain the competitiveness of fees charged by moomoo.

Here is the comparison against two other platforms:

 
As you can see, the fees charged by Futu SG on moomoo’s platform are mostly competitive with some minimum fees actually lower compare to its competitors'.
 
One thing to note here is that Futu SG charges a min. platform fee and this is similar to other brokerages who may place this into their fine prints.
 
Futu invest heavily into their technology to allow their users a fully digitised platform and continuously work to improve it. The platform fee that Futu charge is at a very low rate compared to others so as to allow their users to enjoy better services on the platform.
 
Besides this, Futu SG doesn't charge custodian fee for foreign shares as well.
 
I think the low trading fees and zero custodian fee are definitely helpful towards enhancing our profit & loss from investing.
 
Now the next question you would probably be asking is how to get your moomoo ID and open a Futu SG securities account.
 
The steps are pretty easy and straightforward. Before we head into that, if you find this post helpful to you in any way, please feel free to use my referral link to sign up for your Futu SG account on moomo’s platform and claim your welcome bundle.
 
My referral link is here.
 
Thanks in advance.

Getting Your moomoo ID and Opening Your Futu SG Securities Account
 
Step 1: Click on my referral link as above and you should be redirected to the moomoo's website with a prominent 'Claim Now' button. 

 
Step 2: Click on this 'Claim Now' button and the website will guide you along to get your moomoo ID and lead you to download the moomoo App via the App Store or Google Play Store.
 
Step 3: Once you have downloaded the moomoo App, you can open an account with Futu SG securities. If you are a Singaporean, you can use MyInfo to facilitate the signing up as well.
 
All in all, it took me only about 5 min to complete my account opening with Futu SG on the moomoo App.
 
Step 4: Once that is done, you should receive a confirmation email from Futu within 10 min (or up to a day) to inform you that your account opening has been completed and approved.

Step 5: After that you can start using the moomoo platform to trade.

it's that intuitive.
 
Depositing Funds into Your Futu SG securities Account on the moomoo App
 
Step 1: Click on the 'Me' icon in your moomoo App.

Step 2: Click on the 'All' icon.


Step 3: After that click on the 'Deposit' icon and follow the steps accordingly.

 
You can deposit funds via FAST which is a free transaction from the local banks.
 
On the moomoo platform, Futu SG does not charge any fee for incoming funds deposit.
 
The funds are expected to be deposited into your trading account within 1 - 3 working days after you made the transfer. However my funds took less than 5 min to be reflected in my moomoo App after I made the transfer.
 
This is another plus point to use the moomoo platform.
 
I remember it took several hours to have my funds reflected in my account when I was using another trading platform previously and that resulted in missed trading opportunities.
 
Just in case you run into issues during the sign up or fund deposit process and need a quick guide on how to do it, included below are two video links to help guide you along.
 
If you have any question, you can also reach out to Futu Singapore's client servicing team at +65 6439 1100 or email them at clientservice@futusg.com.
 
 

Last but not least, I personally find the features inside the moomoo platform useful especially the charts with excellent features, the news articles as well as the stocks ideas which you can take reference from.

So if you are keen in investing in the SG, HK or US markets, make use of this promotion with the welcome bundle to sign up. Start using this one-stop investment platform moomoo, powered by Futu.

Cheers and good luck in your investment journey.

27th April 2021 Update

Just received an update on the new welcome bundle promotion named "Share Leh!" from Futu SG. 

This welcome bundle will apply to new account openings from 1st May to 30th June 2021.

The main difference between the existing welcome bundle and the new "Share Leh!" welcome bundle is that the latter will no longer include the SGD 30 cash coupon. 

However commission-free trading for the US, HK and SG markets has been extended by 90 days to total of 180 days. 

The comparison below illustrates the differences between the two bundles in table form. 


Comparing between the two bundles, my take is that the existing bundle will benefit those who don't trade often. The SGD 30 would be more worth it for this group. 

For those who trade more often, the new welcome bundle will be more beneficial.

I will illustrate this with an example, taking a base scenario of trading in the US market. 

No. of Usable Additional Commission-free Trading Days: 90 - estimated no. of weekends = 65 days

Min. Charges per Trade: USD 1.99

No. of Trade Done per Day: assuming one trade per day

Amount of Savings Achieved: 65 days x USD 1.99 x 1 trade per day = USD 129.35

As you can see, even with such a conservative approach the amount of savings is far greater than the SGD 30 cash in the existing bundle. 

In a nutshell for the new bundle, the more you trade, the more you save. 

Just a gentle reminder, if you feel the existing welcome bundle is more worthwhile for you, be sure to sign up latest by 30th April 2021 and deposit the minimum SGD 2,700 into your account within 45 days to qualify for the existing bundle benefits.

You can use my referral link to sign up should you wish to enjoy the benefits from either bundle. 

I will receive a referral fee from Futu SG for the sign up through my referral link. 

Thank you in advance. 

This post is written in collaboration with moomoo.