Investor: "Bought MIT, ST Engg, SembCorp, Lee Metals, Lippo Malls REIT"

This article was recently published on Silly Investor's blog and is republished with permission.

IN THE LAST 2 months, the only new addition to my portfolio was Mapletree Industrial Trust (MIT).

I have, however, accumulated ST Engineering, Sembcorp Industries, Lee Metals and Lippo Malls Reit.

I think I can still sleep well with these additions except Lippo Mall. I do think it is attractively valued, but I would like Lippomall to form a smaller part of my portfolio. I will readjust it when the price is right.

In fact, depending on the earning results, I might take some money off the table too.

sillyinvestor_port1.15

I am actually bullish on industrial reits. Ok, you might think I am bullshitting, but I like to buy when they are not at the peak of the cycle when everything look rosy.

If you look at my previous analysis of MIT, I think Industrial property cycle is far from the peak, although I have no idea what is the bottom, and such investing style usually makes me swim deeper into the red.

I averaged down on Sembcorp Industries and ST Engineering. I like the diversity of their businesses and when viewing them together, you have SIngapore INC without banking

I also doubled my stake in Lee Metals, granted the iron ore price is breaking new low quite frequently, I believed Q4 turned in EPS of 1 cent.

If I am correct, then I think my base value of 4 cents EPS in a downcycle is safe.

If profits fall more drastically or worse, Q4 become loss making, then I make a wrong call. I am expecting 1.5 cents to 2.5 cents dividends for its FY.

So, am I looking to add anything? I did look at Keppel Corporation when it slipped near to $8, but I think no need to see anything now la.

If anything, I will be selling some shares to lock in profits.

Will update when the earning results are out.

Q: How long do you intend to hold your stocks?

Silly Investor: It depends, each has a different buying reason.

For Singapore Shipping Corp, I will definitely not sell it until I see how they are going to pay out dividends given the increase in income due to higher charter income from their new ship charters. If they increase dividends, I will continue to hold as I see this as a dividend grower.

If they do not, then I MIGHT take profit.

As for Venture, I believe the next 2 years will be clear sky where they can sustain their payout. So if at anytime I gain 3 years worth of dividends, I will take profits PROVIDED the hypothesis about the business remains intact.

Just like Lee Metal, I think if they can sustain 1 cent EPS per quarter, I will just hold.

I feel like "trading" SembCorp Industries. I will hold 1 lot regardless but might go in and out for the other.

Recent story: INVESTOR: "My delusional financial journey so far"

Counter Name	Last	Change
AEM Holdings	2.370	0.030
Best World	2.460	-
Boustead Singapore	0.945	-0.015
Broadway Ind	0.133	-
China Aviation Oil (S)	0.920	-0.005
China Sunsine	0.420	0.005
ComfortDelGro	1.480	-
Delfi Limited	0.895	-
Food Empire	1.260	-
Fortress Minerals	0.300	-0.005
Geo Energy Res	0.305	-0.005
Hong Leong Finance	2.500	-
Hongkong Land (USD)	3.140	0.020
InnoTek	0.550	0.030
ISDN Holdings	0.305	-0.005
ISOTeam	0.044	0.001
IX Biopharma	0.042	0.001
KSH Holdings	0.250	-
Leader Env	0.047	-0.004
Ley Choon	0.045	-
Marco Polo Marine	0.067	-
Mermaid Maritime	0.139	-0.001
Nordic Group	0.305	-0.005
Oxley Holdings	0.088	-0.001
REX International	0.133	-0.003
Riverstone	0.795	-0.020
Southern Alliance Mining	0.430	-
Straco Corp.	0.485	-0.025
Sunpower Group	0.210	0.005
The Trendlines	0.067	-
Totm Technologies	0.022	-
Uni-Asia Group	0.820	-0.005
Wilmar Intl	3.470	-0.030
Yangzijiang Shipbldg	1.740	-0.010

Counter Name

Last

Change

AEM Holdings

2.370

0.030

Best World

2.460

Boustead Singapore

0.945

-0.015

Broadway Ind