Stock Sniper's Portfolio For November 2017

Read about Stock Sniper's Portfolio HERE

 

Transactions For Nov 17:

There was no new transaction done in Nov 17.

News of Portfolio companies during the month:

1. Singtel:

Singtel announced its Q2 result with profit increased by 197% to S$2.9b on NetLink Trust divestment. It also decided to pay a special dividend of 3 cts.

Summary of operating results (source: The Business Times)
- Operating revenue for the quarter rose 6.9 per cent to S$4.37 billion from S$4.09 billion a year ago.
- Earnings before interest, tax, depreciation and amortisation up 5 per cent
- Underlying net profit for the quarter fell 4 per cent, impacted by Airtel, which continued to face intense price competition in India. This mainly led to a 10.6 per cent fall in associates' pre-tax earnings to S$648 million.

Apparently, the market wasn't too impressed by the results, and particularly the low amount of special dividend declared, being less than a quarter of the total proceeds of S$2.3b from Netlink Trust IPO. Singtel had stated that it would like to retain remaining the proceeds for investments. The share price initially dropped from almost the high of S$3.78 prior to results announcements to a low of S$3.66, before closing the month at S$3.76.

2. Goldpac:

There is no new announcement from the Exchange during Nov. However, Goldpac did announce its Smart Card shipments for the first Three Quarters in Oct which I had inadvertently missed:

- Smart Card Shipments: year-to-date growth of 8.6% to 135.59m
- Credit Card business: growth of 30%

Based on my own estimations and tabulations above, the growth of Goldpac's quarterly IC card shipments has continued into Q3, albeit at a slower pace compared to Q2. 


3. Hopefluent:

While there is no corporate news from Hopefluent, but there were quite abit of insiders' activities announced in Nov 17.

Non-executive Director, Mo Tian Quan had recorded his first sales of shares in Oct 17 since his last purchase through China-Net Holding (Soufun) of 700K shares at average price of HK$2.183 in 1st Dec 2016. Strangely, while these sales transactions were done in Oct 17, they were only recorded with the HKEx on 13th Nov 17. In total, Mr Mo sold 812K shares at an average price of HK$3.7252.

Is this share sales is a cause of concern?

In my opinion, it's a matter of time that Mr Mo would have to decide what to do with his investments in Hopefluent. As mentioned in my initial posting HERE, there have not been any apparent progress in the cooperation between Hopefluent and Soufun since its strategic investment in 2014. Mr Mo also had not been attending Hopefluent Board Meetings for the past two years according to the annual reports.

On the other hand, the Founders and Executive Directors recorded a total purchases of 2,496K shares at an average price of HK$3.5496 in Nov17.


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