28 August 2015

Portfolio of 8 Singapore Stocks - Aug 2015 [updated 31 Oct 2015]

On 14 Aug 2015, as the Singapore market trended down, I highlighted 8 Singapore companies to keep watch on. I figured that an opportunity would come soon if the downwards trend continued. Indeed, it came pretty suddenly on 24 Aug 2015 (see Playing with the bears of 2015).

While the STI never quite hit the official 20% bear territory, it was pretty close, reaching -19.9%? A 0.1% difference is perhaps just a technicality. Many stocks reached their low point that day.


I thought it might be interesting to see how a portfolio made up of these 8 stocks would fare over time. I assumed that a reasonable investor wouldn't have caught the lowest point to buy, but would have delayed a few days to watch how things unfolded before jumping in.

So, taking reference from the prices a few days later on 28 Aug 2015, here's how a $100,000 portfolio would look like for this portfolio of 8. No REITs nor business trusts. But the 8 are broadly diversified.

Stock
Number of Shares
28 Aug 2015
Dividend Yield
Price to Book ratio
OCBC
1,300
$9.280
4.03%
1.1
Keppel
1,700
$7.200
7.02%
1.15
M1
4,200
$2.920
6.43%
7.08
Boustead
14,600
$0.855
4.73%
1.46
Kingsmen
15,200
$0.820
4.43%
1.59
VICOM
2,100
$6.000
2.93%
3.82
HourGlass
17,000
$0.735
3.06%
1.23
GKGoh
14,900
$0.840
4.73%
0.73

In working out the above, I did not take into account transaction fees. The number of shares were based on approximately $12,500 for each stock, rounded to the minimum lot size of 100. With that, the whole portfolio would have cost $99,126. I guess if transaction costs had been factored in, it would have come close to $100,000 anyway.

Let's see how this fares over the next few years with a buy and hold strategy.

--
1 Sep 2015 ...

I forgot to indicate the dividend yield and their price-to-book (P/B) ratio of the stock previously. So I have updated into the above table, but these are based on the data on 1 Sep 2015.

These are all dividend yielding stocks, and mostly with P/B below 2.0. The exceptions were M1 and VICOM which had much higher P/B. These probably reflect the premium that M1 commands as a Telco and likewise VICOM in their vehicle inspection role.

I'm drawing inspiration from Teh Hooi Ling's article where she mentioned a finding from historical analysis that stocks with a healthy dividend yield over P/B ratio tended to perform better over time.
--

31 Oct 2015 ...

The data for M1 was amended due to earlier error. Changes are highlighted in yellow.

4 comments:

Sillyinvestor said...

Lizardo,

Interesting. U owned all the 8 counters? U managed to get most of then during the 2 days window?

Lizardo said...

Sillyinvestor,

I do own all the 8 counters. Only managed to get more of some of them, not all. Wish I could have. How about you?

Sillyinvestor said...

Hi Lazardo,

Before the black Monday, I did ask my wife to buy MIT, STE, SSC

I only get Accordia trust.

Jessie Wong said...

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