Investment Moats Portfolio Update September 2012

The market is putting people to sleep. I just don’t see much changes in earnings that shows earnings will improve in a meaningful way. The dividend stocks have been doing ok but I am not adding much.

If I am adding its just that I am familiar with them and are edging in from the technical perspective and NOT because they present a huge margin of safety.

This means that I would have exited when I see a good profit can be realized or that there is a sniff of danger.

Now is a good time not to be too itchy fingers. A low yield environment makes equity look more attractive than debts.

Transactions Since Last Update

There are not much transactions other than increase purchases in China Merchant Pacific. I sold off SPH and M1 again when I see a good profit can be realize for stocks that do not offer much safety.

I took partial profit on Starhub and Singtel as a discipline approach when I see that the price seems overshooting any form of business changes that they can make to cause such a change in value.

Current List of SGX Listed Stocks

I am still holding on to most of my holdings.  Am not compelled to add to them seeing that the spread to long term government bond spread has narrowed.

Current List of International Stocks

I am more inclined to add on to Vodafone on signs of weakness as well as VXX and GLD. I realize some losses on my VXX. Still will trade it as I see such a cheap insurance against a large jump in volatility. Volatility is really low now (but can remain low for a long time)

Things I might be interested in

Here are some ideas. It doesn’t mean I will take action but things that appear in my head that needs development.

Dividend Season soon in November, US election in November, I could probably get some yield boost if some of the stable REITs show weakness. Ascendas REIT always looks like a prime candidate for me.

Neratel is a high yielder that is back in the market. I always like the yield, just don’t think there is an edge in a systems integrator that can sustain a high yield for long. But hell, it did pay out really well in 2000s, so what am I missing

Sarin have come down a fair bit. Perhaps due to Rupee weakness then again they are being paid in USD. If they are not losing their edge then they should do ok. But have they learnt from the GFC?

PICO listed on HKSE is somewhat in the same business as Kingsmen but provides a better yield although with a higher payout ratio. That could be something worth looking in.

Singapore Dividend Portfolio Yield on Cost: 7.78%
Singapore Growth Portfolio Yield on Cost:  5.24%
International Dividend Portfolio Yield on Cost: 5.38%

You can always follow my portfolio over here at my Stock Portfolio Tracker. Its pretty neat to track stocks based on transactions that you intend to hold for long time. And its free.