Portfolio as at end Mar 2010

This is a post on my portfolio holdings as at end Dec 2009.

My portfolio, as at end Dec 2009, contains the following stocks:
Best World
Broadway
China Zaino
Fujian Zhenyun (FZ) Plastics
Heeton
Metro
Techcomp
UOA
Viz Branz

Sold: Fabchem, Tuan Sing, Guocoleisure,

Fabchem is sold due to its results not meeting my expectations. Tuan Sing and Guocoleisure were sold not only for cash raising purpose but also due to my impatience with their stock movements. I wonder whether their share price will prove my impatience wrong a few years later.

Partial Sold: Metro and Fujian Zhenyun.

They were also partially sold not only for cash raising purpose but also due to my impatience with their stock movements.

Bought and Sold: Saizen

Bought Saizen on the premise that it is very undervalued. However, after further reading, I find that the under-valuation may not be much. I presume that it will start giving an annualised yield of 9-10% starting July and a 9-10% yield does not provide me with sufficient margin to safety after taking into account of the exchange rate risk. Also, I dislike the princely price at which Saizen is IPOed to Singapore investors. Hence, I decide to sell Saizen very soon after buying.

Added: Techcomp

I have increased my Techcomp holdings slightly after the release of its good results.

Bought: Best World, China Ziano, Viz Branz and Heeton.

Best World was bought after the release of an better than expected results. Unfortunately, the rapid price rise prevent me from acquiring more shares.

I have bought a small portion of Viz Branz due to insider purchase and the prospect of increased earnings. Given Viz's recovered profit margin (ratio), the economic recovery may lead to increased sales and hence increased profits/earnings.

I have also bought a small portion of Heeton as a property play, after the Westcomb report that states its RNAV at $1.15. However I am wary of Heeton's high debt to equity ratio and Westcomb's high RNAV value (I did not see how Westcomb compute the RNAV). Hence, I did not purchase a large stake.

China Zaino was bought as a long-term (3-4 years) play. The stake is not large. Ziano may suffer from lower-than-expected earnings in the next 2 years, as it pays the rents and renovation of the 500 new stores. I may be able to purchase a larger stake in future at lower price, if it reports lower earnings.

Others: UOA

While UOA may be a laggard in my portfolio, I have not reduced my UOA stake. This is because UOA has earnings visibility, as it has the insight to purchase large parcels of land in KL during 2005/6 which should enable it to develop one-two properties per year at least until 2015. Furthermore, UOA has very little debt. Hence, UOA has the stability (i.e. little debt), earnings visibility and the possibility of more upside if KL property price rises. I find myself agreeing with a Channelnewsasia Forumer who has described UOA as a possible 'Wheelock' if given sufficient time.

Turnover

My portfolio turnover has been rather high this quarter, as a result of my impatience and the purchase of four new stocks. Going forward, I may continue to have high portfolio turnover, if I can find more undervalued stocks. I will need to sell existing stocks to purchase the more undervalued stocks.

As the market rise further, it will harder for me to find more undervalued stocks.

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