Read about Stock Sniper's Portfolio HERE
1. Singtel: Added into the portfolio in line with the objective of generative passive income from investments. Uninvested cash balance reduced to near 60% of the portfolio.
Reasons for purchase:
- From the desktop review HERE, it appears that Singtel has the best financial ability among the three Singapore telcos to ride out the rough patches from the increasing local competitions. Also, based on the financial ratios, Singtel has the best ability to sustain its current dividend payout. At this price, the dividend yield is expected to be 4.5%.
Review of other investments:
1. Goldpac:
- There is no new announcement from the Exchange during the period.
- However, on the corporate side, Goldpac did announce that it provided to the China Merchants Bank, an exclusive "Blockbuster " King of Glory co-branded credit card which looks quite cool.
- Still Trading at around 2x ex-cash PE. Valuation HERE
2. Hopefluent:
- Executive Chairman, Mr Fu bought a further 500,000 shares at an average price of HK$3.7195 during the month.
- Property related stocks took some beating during the month as there were news that property sales in China dropped for the first time in more than two-and-half years in September and housing starts slowed sharply.
- The PRC leadership also announced during the 19th Party Congress in October that it would be curbing speculative demands in the property market with tightening measures to cool down the housing prices further and so that housing can be within the reach of the masses.
- Are these developments a cause of concern for Hopefluent?
When the investment decision was first made with this analysis, it had already been expected that the property cooling measures would impact the number of transactions in the short term. Hence, these developments should not come as a surprise. In fact, having a stable property price and enhancing affordability to the masses would improve the demand over long term. The new land releases by the government would also increase the supply of new properties that the property companies and its agents can sell. Hopefluent does not take the risk of property, it just earns from broking property transactions.
- With a strong balance sheet, Hopefluent should have no problem to tide it through. There is still high MOS with net cash/share. See valuation HERE
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