First off , sorry for the delay as it is the Chinese New Year period.
Happy Lunar New Year to the readers.
January is a surprising month actually. With Wee Hur, Centurion , Haw Par and Moneymax leading the gains.
Centurion quickly announced the news of a Reit Spin-off. I would probably have to wait till the prospectus is released before evaluating the whole spin-off as a whole then. I think this would be a good time for a spin-off actually, with the next good time being in 2030 after the dormitory rules have set in and market forces readjust the prices of dormitories depending on the construction demand then.
A stock idea had flashed past my head in the early days of January. I was thinking about how this stock would be placed in the portfolio and rather what i had to remove if i were to add this in.
After some consideration, i have made the following change heading into the Crucial February Earnings Season.
Please refer to the image below for the changes
I made the tough decision to exit SUTL Enterprise and made the speculative play into adding Samudera Shipping.
A slight worry would be the hotel situation in Sentosa as there has been the oil spill in June and the increased competition of rooms in Sentosa. This can be seen in the results of CDL Hospitality Trust. The hotel business although a small part of SUTL Enterprise, would serve as a good driver of revenue still.
While the marina business will be stable in Singapore....the concern will be the start-up operating cost for the Phuket Marina.
Adding both concerns, i have decided to switch out of the position as i don't anticipate any exciting happening from its results.
Samudera Shipping is a company that has traditionally lagged behind the freight rates and seems to have been forgotten
With stronger rates in Q3, i think there could be some positive momentum for this to be the same or sustain.
Given the valuations seems attractive on the back of a strong q3 might be spilled over to q4 and beyond for at least 12 months......my view would be that it is worth to hold this thru the earnings season and monitor again from there.
We will evaluate again as the companies in the portfolio report their earnings in Feb.
Much volatility is expected in Feb and March.
