Review of My 2021

 

2021 basically flew past for me and 2022 appeared in the blink of an eye. With that it means it's time to pen down the customary yearly review for record which I have since done long ago in my head actually.

 

I'm always been somewhat of a contrarian since young.

 

People buy PlayStation I buy Sega Saturn.

 

People chase after the class beauty, I wrote a love letter to the bespectacled lanky girl with tiger tooth (only to be waylaid by the class fatty whom I suspected had a crush on me).

 

You got the gist.

 

So for 2021 portfolio performance portion where most investors reported stellar results, I will report my loss instead.

Family

Our kids are growing up well. The elder one is attending N2 this year while the younger one will be attending the playgroup at the same centre next month.

 

So far it seems like the younger one is taking after his sister's cheerful nature.

My wife and I noticed that from the time when she was still a baby, often times Jie Jie will start smiling the moment she opened her eyes after she woke up from her sleep. These scenes naturally melted our hearts whenever we see them.

Now Di Di is exhibiting the same thing also. 

 

These two cute little ones added so much more to our lives and we cherish every moment with them.

As long as our kids grow up healthily, happily and with the right values in life, I would be very happy.

Health

In early 2021 I attended a personal training course and got myself certified as a personal trainer as I have always been interested in keeping fit.

It was rewarding and I gained a lot of insights on not only the knowledge on personal training, but also in the human anatomy and food nutrition.

Before I attended the course, I have been doing my own workouts comprising of combination of cardio and weights trainings.

 

The workouts were good for weight loss but that was not what I wanted. My aim was to build strength and lean muscle but I actually lost weight instead of achieving the latter.

So after I got my certification as a personal trainer, I wrote two structured training programs for myself with specific load, no. of reps, sets and amount of rest time, etc for my workouts.

I must say this type of structured resistance training works well for my goal. I am seeing the transformation on my physique and body strength despite less than a year into the training.

If there's a chance I certainly don't mind working as a personal trainer as a side hustle. This is something I love and it would be great and satisfying to share my PT knowledge with people who wants a healthier lifestyle and sexier body.

My overall health in 2021 is generally good except for some episodes of recurring back spasms which could be due to an old injury sustained when I was younger. 

 

To counter this I am doing a series of lower back strengthening exercises daily to build up my lower back muscles.

 

Other than that I don't recall ever being ill in 2021.

Work

2021 is not a very good year for my business. Number of contracts secured and value of contracts all dropped.

Earlier in the year, I rejected a ~$150,000.00 project after receiving the PO from the client.

This is because despite having agreed on the scope of work and quotation, the client insisted on us to sign a separate agreement with heavily unfavourable terms to us.

An example of these unfavourable terms is that they have the right to add items to the project if they think necessary but all costs will be borne by us.

I have seen and signed many additional agreement to main contract for other projects. This is quite common. However in this case the terms are heavily skewed against us so in the name of risk management, I rejected the agreement and with that, the contract.

Apart from the above, we also lost a number of large projects where we had high hopes of securing. In a couple of them we were actually the lowest bidder so it was very disappointing to say the least.

We have one potential big project left for this FY. If this is not secured, this FY will likely to be a loss-making one for us.

Investments

I will start off with my regular monthly update first before moving on to the year end conclusion.

 

Dividends Received in December:

 

1) ESR REIT @ $74.76

2) MNACT @ $137.04

3) Netlink Trust @ $204.80

4) MLT @ $217.30

 

Total: $633.90

 

Counters Sold:

 

1) 4,000 units of Suntec Reit @ $1.50

2) 10,500 units of ESR Reit @ $0.485

 

Counters Purchased:

 

1) 1,600 units of Mapletree Logistics Trust @ $1.84 from preferential offering (allocation + excess)

 

Short-Term Transactions:

 

1) Sold 2 x $9.5 DIDI Call 211231 with $0.37 premium. Expired.

 

2) Closed early at $6.93 for 1 x $55 Apps Put 211203 with $0.71 premium.

 

3) Closed early at $1.74 for 2 x $55 Apps Put 211210 with $0.90 premium.

 

4) Sold 6 x $45 Apps Put 211231 with $0.73 premium. Expired.

 

5) Closed early at $0.75 for 1 x $17.5 GREE Put 211217 with $1 premium. 

 

6) Sold 3 x $15 GREE Put 220121 with $0.60 premium. 

 

Total P/L excluding item 6: -US$269.76 (~-S$365.66)

 

Moving on to the year end review.

 

Year End SGD Portfolio

 

Transactions Made

 

This SGD portfolio continues to stay as my main portfolio, providing me with a stable base and passive income to build on to greater heights.

Didn't manage to grow it as much as I wanted to in 2021. In fact the year end portfolio value actually dropped as compared to 2020 due to the divestments I made in December.

 

So in December I sold off my Suntec Reit and ESR Reit to generate more cash and as part of my rebalancing to buy into more quality income-generating counters.

 

I had shortlisted MNACT and CICT as well but eventually decided to sell the above-mentioned due to their relatively high gearing.

Suntec Reit is also facing pressure on their MICE and retail segments while ESR Reit is having declining dividends over the past few years.

Having said that, with the recent announced planned merger for MNACT, I might be selling that also to avoid odd lots in the future. Will be doing some calculations before deciding. Anyway market price will be a determining factor too.

 

In 2021, portfolio suffered an overall loss because I finally decided to cut ISOTeam and realise the loss which amounted to a not-so-cool 5 digits.

 

This is part of the plan that I have made in the beginning of the year: to clear out dead wood from my portfolio.

 

1. Get rid of the dead wood in my portfolio (was planning to do it last month but the price had a drastic fall on the day I wanted to sell)

 

2. Allocate a portion of my investments into crypto currencies (probably 1% of my portfolio for a start)

3. Invest into the US market

So with this divestment my portfolio ended up in the red for 2021, contrary to many of my fellow investors who had a stellar year.

 

On the flip side, my portfolio will likely perform much better in the years ahead now that it has been tidied up.

It feels refreshing to start on this note.

With these divestments and transactions, my portfolio currently holds 9 counters (compared to 14 in 2020 and 13 in 2019).

 

My investment style for the SGD portfolio remains the same: Income investing into quality companies.

 

Year End USD / HKD Portfolio

 

2021 also marked my first year entering the US and HK markets. Prior to that I have been monitoring the US market for a period of time and the volatility there compared to our local market is like comparing an ocean storm and placid lake.

If the local market is for building my income portfolio, the US and HK markets are for my growth elements.

 

I actually started off quite well. Had the first multi-bagger in my trading journey. Then I made a series of stupid mistakes which I have posted here and which caused my portfolio to turn from nice double digit profit margin to the red number seen above.

I have one lesson firmly etched into my mind from this episode. That is not to allow emotions to cloud my judgement ever again in stocks trading.

 

Moving ahead I will still continue to buy into the Tech and green energy sectors whenever opportunities arise such as last night where the Tech counters fell due to the rising Treasury yields.

 

In the options trading space which I also made my maiden entry in 2021, I made a total of 36 trades which comprise written puts and covered calls.

 

I generated a profit of US$1,970.81 (~S$2,671.14) from these trades. I feel this is not bad considering a base of S$20 K initially.

I will continue to use options to supplement my trading income and possibly buy the stocks at the price I want.

 

If you wish to try the US and HK markets as well you can sign up for a moomoo account here.

Year End Syfe Portfolio

 

In March 2021, I opened an account with Syfe after doing a comparison among the different robo advisors.

I started a small Core Growth portfolio with them focusing mainly on the US and Chinese stocks.

Time weighted return so far for the 9 months period is about 7.1%. I intend to continue DCA-ing monthly and let this portfolio run for a longer period of time before deciding on the next move.

Summary

 

So just to sum up my total portfolios value at the end of 2021: S$162,497.41.

 

Last but not least, here's wishing everyone a blessed and healthy 2022 ahead.

Quick Review of My Portfolio (Oct 2021)

Found time to do some quick glancing and do a quick review for the counters in my portfolio since this is reporting season.

Mapletree Logistics Trust

 

 

MLT has always performed admirably since I first bought into them four years ago. The management is a forward-looking one with a record of shrewed yield-accretive acquisitions over the years.

 

This quarter is again an excellent one in my opinion.

 

Apart from the low 38.2% leverage which means much room for further acquisition and growth, I like that their average interest rate is low at 2.2% and their 5.2x ICR.

Mapletree NAC Trust

 

 

Results have improved over 1H last year.

 

I also like their low interest rate of 1.84% and their 4.1x ICR.

 

Yield is still above 6% against cost. 

Festival Walk's contribution to revenue and NPI remains below 50% which is good but can be better. A figure of ~25% would be more ideal.

This can be achieved with future acquisitions though investors ought to keep a close eye on the leverage which is pretty high at 41.4% currently.

 

One thing I noticed is that Festival Walk and Gateway Plaza continue to have negative rental reversions which no doubt will be a drag to coming results. 

Furthermore there is a possibility that a major tenant of Gateway Plaza might not extend the lease beyond December 2023.

 

With the visible hurdles ahead, i will probably maintain my existing holdings and not add further.

CapitaLand Integrated Commercial Trust

 

 

 

All metrics - revenue, NPI, portfolio occupancy & WALE, leverage, ICR, cost of debt, look healthy.

 

Clarke Quay's occupancy suffered due to government's regulations on nightlife. However I'm not too worried about this since this should be a passing phase.

 

Six Battery Road's relatively low occupancy rate is due to the ongoing AEI which I have covered in previous review. Again nothing to worry about as the AEI should be completed by end of this year.

 

CapitaSpring has achieved TOP for the office component. More importantly, they have achieved committed occupancy of 83.1% with another 7.2% under negotiation.

 

This is good to see as I was having some concerns on the occupancy rate of this property back in my May 2021 review.

 

CapitaLand China Trust

 

 

As mentioned previously, I like that Minzhongleyuan has finally been disposed. Though it's a small portion of the portfolio, it has been a drag for long.

 

I like that CLCT has gone into logistics and business parks right after getting the expanded mandate from unitholders.

 

The WALE by GRI and NLA for the business parks is relatively short at 1.9 to 2 years. This can be a double edge sword though if positive rental reversion can be achieved.

Yield is still above 6% against cost.

 

Upcoming quarters should see even better results with the addition of the 4 logistics assets.

ESR Reit

 

 

Performance this quarter is a good improvement over the last.

However if there is one metric that I don't like, it is their cost of debt which is high at 3.41%.

Another thing to take note of is the continual negative rental reversions (-2.2%).

 

It has been a busy quarter for ESR Reit with the divestment of non-core asset, a round of equity fundraising and inclusion into the FTSE EPRA NAREIT Global Real Estate Index.

 

The addition to the index last month is good news to existing unitholders as this will makes the Reit more relevant to funds and more visible to investors.

 

Of course the latest big news is the proposed merger with ARA LOGOS Logistics Trust. Honestly I have expected this ever since ESR Cayman acquired ARA Asset Management.

 

Overall I would say this merger makes sense considering the synergy and potential advantages from the enlarged Reit.

Suntec Reit

 

 

 

  

Good set of results driven mainly by their overseas portfolio with maiden contributions from Minster Building in UK.

 

Leverage is high at 44.3% which means less room for growth through acquisitions with borrowings.

Suntec City Mall continues to have negative rental reversions.

Suntec Convention continues to be a drag though quarterly loss has decreased.

Ascendas Reit

 

 

Continues to be one of the most well-run Reit in Singapore with constant portfolio rejuvenation through asset disposals and acquisitions.

 

Well diversified in terms of geography and asset type.

 

Good portfolio WALE of 3.8 years.

Netlink NBN Trust

Results will be announced on 3rd Nov 2021 after trading hours.

SingTel

 

Results will be announced on 11th Nov 2021 before trading hours.

September 2021 Updates - How I Broke My Own Rules in Investing

Sept 2021

 

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

S$147,523.50

Purchase

 

84 shares of Support.com @ $24

36,000 shares of Sembcorp Marine @ $0.08 (Rights subscription under CPFIS)

Sold

60 shares of AMC @ $40.50

Dividends

 

1) CICT @ $279.72

 

2) CLCT @ $384.93

 

3) Ascendas Reit @ $192.85

 

4) MLT @ $216.10

 

5) ESR Reit @ $34.40

 

Total: $1,108

Short-Term Transactions

Closed 1 x SPRT Put 210917 at $26 strike with $11 premium early at $6.69.

 

Sold 2 x DIDI Call 210924 at $10 strike with $0.35 premium. Expired.

 

Closed 3 x SPRT Put 210917 at $19 strike with $3.70 premium at $3.40. 

  
Sold 1 x SPRT Call 210917 at $38 strike with $2.49 premium. Expired.

 

Sold 1 x SPRT Put 210917 at $14 strike with $1.15 premium. Assigned.

 

Sold 5 x SPRT Put 210917 at $13 strike with $0.84 premium. Assigned.

 

Sold 1 x FUTU Put 211015 at $80 strike with $3.60 premium.

 

Sold 2 x DIDI Call 211029 at $9.5 strike with $0.3 premium.

 

Sold 1 x TSM Put 211015 at $107 strike with $1.37 premium. 

 

Summary

For my SGD portfolio, not much change in terms of value. Collected S$1,108.00 of dividends this month. 

Decided to subscribe for Sembcorp Marine rights issue.

 

With this, I'm holding 60,000 shares at S$0.4052 average price.

 

Wifey's is 45,000 shares at the same average price.

 

Both of us are holding this under the CPFIS.

For my Syfe Core Growth portfolio, TWR has dropped to 3.77% which is lower than last month's figure, in line with the US and Chinese markets volatility.

 

Have DCAed into this portfolio yesterday and plan to continue this every month.

For my USD / HKD portfolio, I added 84 shares of SPRT at $24 and bring my holdings to 168 shares.

I also took assignment of 6 Put contracts for SPRT (1 x $14 and 5 x $13 strikes).

After conversion to Greenidge Generation (GREE) at a ratio of 1 SPRT : 0.115 GREE, my total holdings stand at 85 shares at average price of $167.03.

This whole exercise is a very bad mistake on my part. Many schoolboy errors were committed. I broke several of my own investment rules along the way despite so many years of investing. To be honest, I am very disappointed with myself.

How I Broke My Own Investment Rules

Yes, I have to make this bold and underlined to remind myself of this round of mistakes.

 

Mistake No. 1: I invested into the counter without doing enough due diligence. I knew it was going into a merger and the price is driven up by the euphoria but that's about it. I did my fair value calculations for the share price after I went in, not before. Schoolboy error.

 

Mistake No. 2: I got FOMO. Yes - after so many years, I still fell for it. Stupid. My emotion in investing definitely needs working on.

Mistake No. 3: I set a stop loss. But did not follow it. Really, stupidity has no cure.

Mistake No. 4: I traded options into the merger despite unknowns regarding the post-merger treatment of the option contracts.

I can go on forever... But the first 3 mistakes are pitfalls which I am well aware of yet I still fell in.. And the funny thing is that I always remind others not to do these..

Anyway because of this episode, my USD / HKD portfolio went from a profit of about 20% to now a loss of about 35%.

Hopefully I can fight back and level the field soon.

As mentioned above, I did a fair value calculation for GREE share price after I bought in and the value I got was $77 per share which gave a conservative market cap of around $3 B for GREE (RIOT's was $3.38 B when I did this calculation back then).

In other words, based on this $77 GREE valuation, each SPRT share must be bought at $9 or below in order to breakeven.

Hence if I have done my calculations first, I would not have bought into SPRT.

Of course as this past month has shown, the share price of Bitcoin miners has spiraled down as Bitcoin went into correction mode.

Taking that into consideration, if I take a conservative 80% of RIOT's current market cap at this point of writing as a reference, the fair value of GREE share should be around $49.

(0.8 * 2.39 B) / 38.67 M = $49 (conservatively speaking)

 

Currently Bitcoin is trading at around $43,000.

So assuming if Bitcoin goes back to around $50,000 which is the price when I first did my calculations, GREE should be trading at around $77 theoretically.

 

This also implies an upside of 308% from current share price.

 

However the issue is when will the market rate GREE at its fair value. Sometimes fortune favours the patient.

 

The current share price doldrum is partly due to the falling Bitcoin price and SPRT investors offloading to cut loss.

 

Once the loss cutting is done the share price should start to recover and consolidate in range.

 

My game plan or exit plan whichever is nicer to call, is to hold and try to position my average price to the fair value through DCA and options trading when the new option ticker is up for GREE.

 

The odds are against me but hopefully things will improve soon. Afterall GREE is a fundamentally good company at its base.

Enough about my mistakes for now...

This month I added S$7,500 into this portfolio and also received US$100.32 for the fractional GREE shares after conversion.

 

I also made a profit of US$1,473.93 (~S$2,006.79) from options.

 

Moving forward I will continue to use options to supplement my investable income and narrow the loss from GREE.

 

Last but not least, if you want to open a moomoo account you can do so using my referral link here. 

As always, good luck in investing!