Wednesday, February 15, 2017

2017 Portfolio Update (Feb)

  • 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
StarHub released its 2016 full-year results on 3 Feb. Net profit after tax was down 33% YoY for Q4 and 8% for the full year. Free cash flow was at negative $45M. (And the 4th Telco has not even open shop yet!). On top of this, it also dropped the bombshell to reduce it's dividends by 20% for 2017. In view of this, I have divested StarHub @ $2.85 on 6 Feb.
I utilized the proceeds to add Fraser Com Tr to my portfolio.
Today RHT Health Trust saw a huge sell-down/shorting of its shares. At 1 point, it was down more than 17% to $0.71 (compared to its previous close of $0.865), before recovering a bit to close at $0.795. I am not aware of anything that could explain the big price decline, but I should remember "to buy at a price I would not sell". As such, I took the market's offer to accumulate more RHT Health Trust at $0.73 a piece. This would bring my average price (coincidentally) to the closing price.
To fund my purchase, I have divested Sabana Reit and netting a gain of >20% in the process. I had wanted to keep Sabana as a "turn-around" play, but with the current saga of the uniholders demanding its managers' removal, I think the share would likely remain range-bound in the short term until the outcome becomes clearer. Putting the money in RHT Health Trust seems to provide more "value" to me.
Of course, my opinion could very well turn out to be wrong. We can only be sure on the hindsight.

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