Summary of my portfolio - Jul 2020

Mr CDxD portfolio

No.	Counters	No. of Shares
1	First REIT	48,000
2	HongKongLand USD	19,500
3	ST Engineering	20,000
4	ComfortDelGro	14,000
5	UIC	11,300

• Bought 14,000 shares of ComfortDelGro on 16 Jul at $1.45 (Link)
• Bought 6,300 shares of UIC on 21 Jul at $2.19 (Link)
• $211.20 of First REIT dividend declared on 22 July (0.44cents/share), payout on 25 Sep
• Bought 5,000 shares of UIC on 27 Jul at $2.11 (Link)
• USD1170 of HongKongLand dividend declared on 29 July (6cents/share), payout on 14 Oct

Mrs CDxD portfolio

No.	Counters	No. of Shares
1	STI ETF via POSB invest Saver	557

Apr 2020: 185 shares at $2.67                Cost: $498.37 (with $4.42 sales charge)

May 2020: 190 shares at $2.604             Cost: $498.87 (with $4.11 sales charge)

Jun 2020: 182 shares at $2.725              Cost: $499.96 (with $4.10 sales charge)

Jul 2020: 183 shares at $2.695               Cost: $497.37 (with $4.10 sales charge)

• $36.87 of STI ETF dividend payout on 17 Jul (6.62 cents /share) for 557 shares

Added: UIC (Again in Jul 2020)

Bought another 5,000 shares of UIC at $2.11 on 27 Jul 2020.
This bring my total holding to 11,300 shares in total.

Reasons for buying UIC shares remain the same when I bought it last Tue 21 Jul 2020 (Link).





Related post:
1) Added: UIC

Added: UIC

Bought 6,300 UIC shares at $2.19 on 21 Jul.



Reasons for buying:

1) Share price at 10 years low 

It reached 52w low of $1.94 in Mar 2020.
Putting aside 2020 pricing, the last time it at $2.19 range is 10 years ago (Year 2010).


2) PB 0.4


3) Chairman Dr Wee Cho Yaw insider trade
Chairman Wee purchased $6,598,948 worth of UIC shares at average price $1.97 on Mar 2020.
This increase his total holding to 50.37% in UIC.


4) Potential privatization stock

Bought Perennial in 2018 and it got privatization recently (Link).
Perennial is my first stock that privatize.
Thus, looking for another potential stock to be the successor of Perennial.

The rumour to private UIC have been around for many years.
However, it seem to have higher chance at this moment compare to few years ago because:

a) Lower volume weighted average price (VWAP)
In every privatization, you will always see VWAP where it try to convince shareholders why their offer price is of best deal


Eg: Perennial VWAP

Assuming Offer price of $5 for UIC,

Last traded price on 21 Jul 2020 will be  +130%

                          1 month VWAP will be  +117%

                          3 month VWAP will be  +115%

                          6 month VWAP will be  + 90%

                         12 month VWAP will be + 70%

The longer period the share price remain low, the more attractive VWAP will be.


b) Major shareholders

Chairman Wee held 50.37% of UIC.
JG Summit Holdings (Founder: John Gokongwei) held 37.05% of UIC. With the passing of John Gokongwei in Nov 2019, the successor might have a different strategy for the future. One of the reason privatize could not happen in the past could be because agreement could not be reach with John Gokongwei.


c) Low public float %
As at 9 March 2020, approximately 12.79% of the issued ordinary shares of the Company are held by the public (Pg 169 of Annual Report 2019).




I hope i am right to spot this hidden gem evolve to become a diamond ring within the next 2 years.

Added: ComfortDelGro (CDG)

Bought 14,000 Comfortdelgro (CDG) shares at $1.45 on 16 Jul.



Reasons for buying:
1) Share price at 8 years low

It reached 52w low of $1.33 in Mar 2020.
Putting aside 2020 pricing, the last time it at $1.45 range is around 8 years ago.


2) Grab and GoJek are burning cash daily (Unprofitable) vs ComfortDelGro (Profitable)

Grab CEO says the company can go public ‘once we’re profitable’

Grab CEO: No IPO Until Business Shows Profits

As Grab expands to food and finance, its transport business is no longer driving most of its growth

SoftBank-backed ride-hailing firm Grab announces layoffs

3) Singapore out of Circuit Breaker since 2 June



4) Joint Bid for France metro projects
ComfortDelGro Ties Up With RATP Dev And Alstom To Jointly Bid For Metro Projects In France


5) COVID Vaccine
US biotech firm Moderna would enter the final stage of its human trials on July 27. The study should run until Oct 27.

China's SinoVac is also at an advanced stage, Phase 2, while the Russian news agency TASS has announced Russian researchers have completed clinical trials on a vaccine, though they have not shared data.
Source







CDG will be releasing their 1H result on 15 Aug 2020.

This 1H result will be very bad given that:
- CDG had provided Full Rental waiver for Taxi till 1 June
- the ridership of Train & Buses dropped during Circuit Breaker
- CDG issued Profit Guidance (expecting net loss) on 26 Jun 


It is important to note that:

Source: https://www.comfortdelgro.com/documents/38822/106277/Media+Release+-+ComfortDelGro+Cabbies+to+Get+More+Than+%2418M+Relief+Package+to+Combat+Falling+Demand.pdf/0a44870b-f948-ca4e-83ff-8ead4e88320f?version=1.0&t=1581639713085&previewFileIndex=all

CDG continue to provide 50% rental waiver for taxi till 15 Jul and 40% rental waiver till 15 Aug.

There is also high chance that there is no dividend declared since CDG is receiving Relief fund from Government.

CDG share price might go lower within the next few months.
However, I am comfortable with $1.45 share price as only minority of investor is able to catch at the lowest price.