Sunday, December 10, 2017

Risk-Free Cryptocurrency Trading!

In my Nov posting, I mentioned that I was trying out trading the cryptocurrencies. I bought a hardware wallet to try out.



Since then, I have injected a total of 2 tranches of capital. After trading for 1 month+, my trading profit came out to be about 87%. This should not be surprising, given the recent strong run-up in crypto prices. Back in my Nov posting, I included a screenshot of BTC price of <SGD$10k. Fast forward to today, BTC is trading at >SGD$20k



Even though I am mentally prepared to lose all my capital put into cryptocurrency, I decided to make my cryptocurrency trading risk-free. What? ... How can trading be risk-free? much less for cryptocurrency? ... Well, I have just cashed out my total capital amount put in. The amount cashed out was in fact more than my capital, as the cashed out amount was in USD instead of SGD which I injected, realising capital gain in exchange rate.

For the remaining paper profit, I have decided to keep it invested in BTC/ETH as my position is now free-of-cost. Even if the cryptocurrencies failed and plummet to zero (which I doubt it will), I have gotten my capital back intact. If it do take off and rise further in value, I can ride the trend. Win-win situation!




Friday, December 8, 2017

2017 Portfolio (FY) Update

 
  • Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fee

Since my last update, changes to my portfolio includes partial divestment of RHT Health Trust @ $0.845 (20 Nov), and additional of ComfortDelGro @ $2.04 and Duty Free Intl @ $0.255.

The reason to reduce my investment in RHT Health Trust is due to my concerns in its recent development of delaying distribution for 1HFY18. RHT have explained its reason to delay the distribution due to "certain service fees and interest income that have not been received from Fortis". Since RHT is a Trust, they can decide to skip the payment altogether, unlike a REIT, and there is nothing wrong with that. The above concern coupled with the recent divestment of shares by its management do not help to instil confidence, and appear to be a red flag for me.




Saturday, November 4, 2017

2017 Portfolio Update (Nov) and Cryptocurrency


  • Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fee

As of date of this posting (4 Nov), there is no changes done to my portfolio since my last update. Probably I have not found any good candidate counters to add, and just waiting to collect dividend income, Total portfolio gain was up about 17% since my last update. This was contributed largely from bonus shares received from UMS, and my average entry price is adjusted accordingly. This has become my 2-bagger, considering all the past dividends received.

On a side note, I have recently read quite a bit about cryptocurrencies, and am trying out trading BTC and ETH on the Gemini platform. The rise of the digital currencies have been phenomenal. Info about the cryptocurrencies are easily found online. You can read about how it works and technical terminologies such as Block Chain, Ledger, Decentralization, Satoshi Nakamoto, etc, etc, if you have not already heard and interested.

 
1 BTC is currently reaching the S$10K mark. Yes, I know that the digital currencies are not backed by anything, and its value is determined purely by supply and demand (AKA speculation).

So why am I trading cryptos instead of doing my usual income-invesing? Well, to put it in simple terms, the cryptocurrencies have caught my attention and brought out my curiosity and the trader in me before I started my income-investing journey (hence the name "AlcusTrader"). Hehe... You may think it as gambling, but I like to think of it as "hedging the crytocurrencies".

And how much am I risking? About 0.25%, in terms of my AlcusTrader portfolio cost. As of now, I do not foresee I will be further increasing my exposure, and have "written off" the capital for this at the minute it was transferred out. In other words, I'm fully prepared to lose all of it.

How is the trade going so far, based on the current price, I'm in profit of around 17%.. Basically, I'm just trading the BTC/ETH pair to increase the amount holding. I will still continue to build up my AlcusTrader income portfolio, but will exclude the cryptocurrencies in the summary as I do not think it as investing. I may do update on my crypto trading as and when there is new interesting updates.

Cheers!




Wednesday, October 4, 2017

2017 Portfolio Update (Oct)

 
  • Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fee
I have swapped ISEC Healthcare to Singapore O&G for my healthcare sector exposure. As of the date of posting, new counters added includes AVJennings and Fu Yu which was just bought today, making a total of 20 counters in the portfolio.

AVJennings is my first foreign currency-denominated counter in AUD. As I build up the portfolio, I find new challenges in keeping track of my portfolio performance. With the inclusion of AVJennings, the computations are now adjusted for exchange rate.


Tuesday, September 5, 2017

2017 Portfolio Update (Sep)

 
  • Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fee

There is quite some changes and actions done on my portfolio since the last update in May. Some of them obvious such as addition of new counters, while others not reflected such as participation in Netlink NBN Tr IPO which was unsuccessful, bought and sold post-IPO at the same price as I expected the support to fail after the price support lapses. We now know that it headed north instead. I also did some trading around my position in M1 which resulted in a lower average price.

New counters added include EC World REIT, ISEC Healthcare and StarHub. Although divested earlier in Feb when it announced dividend cut, I recorded the addition of StarHub as a new position as I think keeping accounts of old transactions will complicate my portfolio computations. In effect I am "writing off" the losses from the previous position.

ISEC's current yield is low, but I added it for some growth to my income strategy. StarHub is yielding about 6% with the reduced $0.16 DPS. I am not sure whether this is sustainable in the long term future, but I think Telco is still a relatively consistent cash generator, and with the current lower DPS, it is not as risky compared to 2016 when they dished out more than their earnings.

Tuesday, May 23, 2017

2017 Portfolio Update (May)

 
  • Note: P/L computation only takes into account the current holdings in the portfolio, and excludes capital gains/losses and dividends from divested shares, and commission charges/fee

Soon after I added my latest holdings (Keong Hong @ $0.5), it's price corrected further until the latest low of $0.465. I took the opportunity to average down and reduced my average entry to $0.4825.

Wednesday, May 3, 2017

2017 Portfolio Changes: Added Keong Hong (3 May)

It has been almost 3 months since I did anything to my portfolio. During these 3 months, the market has been in a bullish mood, especially in the manufacturing industry with stocks like Micro-Mechanics and UMS near their all-time high. In such times, stock picking becomes increasing challenging.

After going through my shortlist of stocks, I finally added Keong Hong Holdings today @ $0.5.



The financials summary are as follows:



EPS in 2016 was at $0.1508, down by about 6% from the previous year. But if we look at 2 years before, it's actually growing. Based on my entry price and FY2016 DPS of $0.035, dividend yield is 7%. Based on the numbers, dividends are easily sustainable as the payout ratio is only about 23%. P/E ratio is low at about 3.3, compared to its peers.

I think Keong Hong's strength is in its ability to work with well-known developers for projects through joint ventures. The recent JV for Seaside Residences with Frasers Centrepoint proved to be well-received.

While the thing about Keong Hong that I dislike is that its business is project-based, its order book is still healthy and stands at about $350M, based on its 2016 Annual Report. The company also announced recently that it is acquiring 60% of Hansin Timber Specialist as part of its long-term strategy to provide more diversified and recurring income for shareholders.