FSM's The Members' Portfolio Challenge

After clearing all exam, finally I have time to blog again. About a month ago, I submitted my recommended portfolio for FSM's The Members' Portfolio Challenge and my portfolio was featured. Before the submission, there was not instruction to give the suggested funds for the particular sector which we recommended, so I just submitted the allocation. Therefore, I take take this opportunity to post my recommended funds here for those who is interested to know based on my recommended portfolio. Below is the portfolio posted on FSM - http://www.fundsupermart.com/main/research/viewHTML.tpl?articleNo=5737 : 

PORTFOLIO 4

Asia ex-Japan - 25% allocation will be split into 3 funds: namely:

1. FTIF-TEMPLETON ASIAN GRTH A(ACC) SGD - Focus On Energy 

2. FIRST STATE ASIAN GROWTH FUND -  Focus On Financial

3. HGIF ASIA EX-JAP EQ SM COS SGD AD - Focus On Small - Mid Cap 

Global Emerging Markets - 15% allocation will be split into 2 funds: namely:

1. FIRST STATE GEM LEADERS - Well Diversified In Terms Of Industries

2. ABERDEEN GLOBAL EMERGING MARKETS - Good Exposure To Financials And Energy Sectors

China & Hong Kong - Total 10%

1. ABERDEEN CHINA OPPORTUNITIES - 73% Allocation On Hong Kong Stocks

2. FIDELITY CHINA FOCUS-SGD - 92% Allocation On China Stocks

High Yield Bonds - 15%

1. PRU MTHLY INCOME PLAN CL A - Mainly Invest On Us High Yield Bonds And Asian Bonds

Emerging Market Bonds - 15%

1. FIDELITY EMERMKTDEBT A-SGD - Over 50% On Government Debt

Asian Bonds - 20%,  allocation will be split into 2 funds: namely: 

1. FIDELITY ASIAN HY AMDIST USD - Over 50% On Asian Industrial Bonds

2. LEGG MASON WA ASIAN BOND TRUST - Mainly On Asian Government Debt

PHILOSOPHY BEHIND PORTFOLIO 4

This portfolio aims to achieve mid to long term capital appreciation by investing 50% to bonds funds and 50% into equity funds. Our current view on the market is that Asia equities are generally undervalued after huge the correction from August to October 2011. At the same time, we believe that the Europe debt problem cannot be solved in the near term but do not wish to miss out on the upside opportunities on the brighter Asia market.

Based on a three year average annualised return on high yield bonds, Asian Bonds and Emerging Market bonds all have a yield above 10%. Therefore this balanced portfolio offers stable yield from high return bonds to offset volatility during tumultuous market conditions while this arrangement still has the flexibility to rebalance towards to 60-65% equity if the overall market continues to deteriorate. As we are bias toward Asia markets, we have allocated an overall 35% weight on Asia equity including single country equity in China and Hong Kong which we believe offer the highest growth po tential. Global Emerging Market's equity's three years average annualised return is about 15% (reasonable return). This is to diversify the weightage on the equity portion as to not overweighting on the Asia region as a risk control measure. Overall, this portfolio's objective is to gain 15-25% return per annual basis.

Tiger Airway Holdings Ltd - update

Mr. Anthony Alfred Peter Davis is the Group President and Group Chief Executive Officer, Executive Director of Tiger Airways Holdings Ltd is selling off his rights-issued shares. This was a show of no confident in his company at least in the short term. My previous posting target price of S$0.066 was reached, currently trading at S$0.655 per share. As such, without further news, spikes&curves change our view on Tiger Airway to neutral. 

Tribute to Steve Jobs

I must admit that I'm not a Apple lover from the beginning because like how I pick my stocks, I always support the underdogs. My 1st apple product was an iPhone 4. At that point of time, I am contemplating which smart phone should I get, a Samsung Galaxy S or iPhone 4. Eventually, I picked an iPhone 4 and immediately fall in love with it. I also worried about how difficult to relearn all the new functions of a smart phone. But within 2 days, I am so comfortable with it. Great product from Steve Job!

On Friday, I pick up an newspaper and read an article he gave during a graduation convocation. I must said, I am touched by what he said. One of the things he said was, "sometimes, life hits you in the head with a brick. Don't lose faith. You got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life and the only way to be truly satisfied is to do what you believe is great work. If you have'nt found it yet, keep looking. Don't settle." This part really hits me in my heart. I gave up easily when I met obstacles. I should fight for things I love, find a job which I'm passionate in. I will keep looking.

Back to Steve, he was a visionary leader whom looks what the futures lies. Similarly, investing in the stock market requires many foresight and guts feeling to go against the general trend at times. If you found a under value stock which are not moving. Don't get panic. As long you do your due diligence well, one day, you will be rewarded for keep faith.

Keep hungry and stay foolish. Steve Job, thank you for your great product.

S Reits Overview

REITs Traded on SGX are detailed in the table below, that also includes the respective location of assets, sector coverage and dividend yields.   

Market Review 4 Sep 2011

Another month has passed. A quick look back in August, market has been very volatile. Manage to make slight profit from contra and very short term trading. I have been hitting to right stocks such as Noble at 1.303, HPH at 0.605, YZJ at 0.965 and the most recent put warrants last week, but however didnt make much due to my fear of market turning too fast. I sold off most at very small profit. My worst miss was the HSI put warrant bought last wed. If only I hold on till friday or even next week, I could have rake in a near 100% gain in 3-4 days. Moving forward, I have to be more confident of my analysis and stick to my trade for higher profit.

September had been always said to be the month which perform poorly in the stock market. One particular theory points to the fact the summer months usually offer light trading volumes on the stock market, as a good deal of investors typically take vacation time and refrain from selling stocks from their portfolio. Once fall begins these investors typically return to work and exit positions they had been planning on selling. When this occurs, the market experiences increased selling pressure, and thus an overall decline.

spikes&curves investment stunt is still conservative especially when most stocks has rebounded. I will continue to do short term trading.

Some of stock under my radar are:

Amtek, Mermaid, Singtel (short), Olam (short) 

Sunday Babe - Nat Nattasha

Profile

Name: Nat Nattasha
DOB: 16 September 1992
Country: Thailand
Profession: Artist, director
Analysis: Rising Star, Rocker Babe (Growth Stock with large potential)

Appearance: Cute
Overall rating: 3.8 Star (out of five)

Cash Rich S-chip

S-chip companies had been badly sold down during past few months. Even those performed relatively well are not able to avoid it. spikes&curves look into some of the S-chips with large cash holdings vs their share price.

1) Changtian 

FA: Disposes some of their unprofitable business operation and company has been coping with rising raw material cost which reduces their profit margin. Near term business not much turnaround.

TA: Trading at very low price. Near all time low.

6 mth EPS: 1.84 RMB

Cash holdings: $0.219 per share. (currently traded at $0.055-0.06)

2) China fibertech

FA: 6 mth 2011 earning improved. However, management mentioned order had dropped in q2. Nevertheless, should maintain profitable for 2011.

TA: Damn low.

6 mth EPS: 5.0 RMB

Cash holdings: $0.166 per share (currently traded at $0.05-0.051)


But do you dare to buy? spikes&curves do hold the above mentioned two counters.