Oct 2021 Updates

Oct 2021

 

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

S$150,806.60

Purchase

 

PayPal @ $244.60

Sold

None

Dividends

 

None 

Short-Term Transactions

 

Closed 1 x FUTU Put 211015 at $80 strike with $3.60 premium early at $14.40.

 

Sold 2 x DIDI Call 211029 at $9.5 strike with $0.30 premium. Expired.

  

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

 

Closed 2 x FUTU Put 211029 at $50 strike with $1.69 premium early at $0.50.

 

Sold 3 x LMND Put 211029 at $61 strike with $0.30 premium. Expired.

 

Summary

SGD portfolio:

  

Portfolio value increased by around $3.3k. Didn't add anything this month as funds are limited.

Several of my counters have reported excellent results with increased in DPU in their latest updates.

 

I have done a quick review over here.

Syfe Core Growth portfolio:

 

TWR hit a nice 6.38%. The absolute profit is not big since this is still a small experimental portfolio. But the feeling is still good nonetheless.

 

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

USD / HKD portfolio: 

 

Added a small position of PayPal when the share price dropped below my entry target price. 

 

The Futu PUT that I sold for $3.60 took an unexpected hit when the People's Daily reported that Futu Holdings and UP Fintech face regulatory risks as China's new personal data privacy law takes effect on 1st Nov 2021.

 

The share price of both counters dropped swiftly within a short period. I decided to close the contract early for damage control but still took a hit of about US$1,085.

Such is the risk of China stocks nowadays.

This single contract turned my otherwise profitable month to a loss-making one of US$577.17 (~S$778).

Overall I'm still in the black for my options trading since I started in March this year.

Current P&L is around S$2,700 off a base of S$20,000. I think it's not too bad for a 7 months endeavour.

Hopefully this amount can continue to grow exponentially. 

  

Moving forward I will continue to use options to supplement my investable income.

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!

Moomoo October Promotion - AAPL Shares + Free iPhone 13!

 

 

 

Guys, moomoo has up their game again. This time they are giving away the latest iPhone 13!

How cool is that. As always, you get the latest promotions first hand here in this blog.

Now before we talk about the iPhone 13, let's go through some of the other perks of signing up with moomoo first.

Moomoo October Welcome Rewards

Period: 2nd October 2021, 20:00 hours - 1st November 2021, 09:59 hours

 

My referral link is here for your easy reference.

 

1: Register for a moomoo ID

Reward: 180 days unlimited commission-free trading for the US, HK and SG stock market (to be activated within 90 days)

2: Successfully open a FUTU SG securities account (moomoo is the trading App by FUTU)

Reward: Free access to level 2 US stock market data and level 1 SG & China A-shares market data

3: First deposit

Reward for depositing [S$2,700 - S$199,999]: S$200 stock cash coupon bundle
Reward for depositing [>=S$200,000]: S$2,000 stock cash coupon bundle

 

* A stock cash coupon is just like cash which you can use to purchase stocks up to the cash coupon amount. I have personally verified that so no worries.

4: First stock transfer-in (US and HK stock only)

Reward for transfer value [S$50,000 - S$99,999]: 1 AAPL share (Apple share) worth ~S$195

Reward for transfer value [S$100,000 - S$199,999]: 2 AAPL shares worth ~S$390

Reward for transfer value [>=S$200,000]: 2 AAPL shares worth ~S$390 + iPhone 13 (256 GB)

Granted that the criteria for getting the free iPhone 13 is abit high, but if you have been trading for awhile now, transferring your portfolio of S$200k over to moomoo will get you 2 free Apple shares and a free iPhone 13.

That can be seriously considered.

Even if your portfolio doesn't have that required amount, simply getting the free 1 or 2 Apple share is also worth it in my opinion. It is free money afterall.

 

If you find this sharing useful, please feel free to use my referral link here to sign up for your account and claim the freebies. 

Just a gentle reminder: this promotion runs from 2nd October 2021 to 1st November 2021 as mentioned above.

Last but not least, remember to drop me a message or email when you got your iPhone 13 so I can feel happy for you too ya!