This month is a month of rally due to better than expected economic data from the US. STI broke through the previous high of 3,043 and reached a new 2-year high. This boosted the confidence of many investors previously staying at the sideline to participate in the rally. However, near the end of September, things looked a little subdued as markets were overbought and worries of the Eurozone returned to send jitters to the markets.
For my portfolio, the decision to add on my positions in Noble when the opportunity presented itself last month proved to be the right move. This month, Noble announced the acquisition of the retail commodity marketing operations of the joint venture between Sempra Energy and the Royal Bank of Scotland. This move will boost the portfolio of Noble and its earnings per share is projected to increase by approximately 10% with this acquisition. This boosted the share price of Noble to shoot up by 8% in a day and it prompted me to sell off part of my holdings in Noble to lower my average buying price to a safe $1.46. I will continue to hold on to this strong commodity counter until fundamentals change.
Another big event for me this month is the announcement of the placement of new shares by Mapletree Logistic Trust. The purpose of this placement is to raise funds for further acquisitions and pay down debts to strengthen its portfolio. Part of the new shares is for institutional investors and part is for existing shareholders, who will be eligible to purchase 2 shares for every existing 25 shares at $0.815. This is an expected move by Mapletree Logistic Trust, hence I will definitely add on my positions in this strong counter, and hopefully be able to apply for excess shares so that I won't end up with odd lots. With further acquisitions up and coming, I believe there is still upside for its yield. Hence when opportunity presents itself, I will definitely buy more shares for consistent dividend play.
In addition, Parkwaylife Reit had a spectacular performance in September until a private equity firm announced that it will sell off its 9.3% stake in Parkwaylife Reit at a price range of $1.56 to $1.62. This move caused Parkwaylife Reit's share price to drop by about 5.4% in a day and I made use of this opportunity to add on my positions in this counter. With this purchase, I also decided to sell off my positions in Yongnam at a slight loss due to commissions to free up some cash for better investing opportunities, as explained in the previous post.
Overall this month has been a good month and my portfolio's unrealized profits rose to the highest level for the year to date. I hope the macroeconomic conditions for the coming months will continue to be sustainable and the upcoming 3rd quarter results will continue to thrive with good dividend payments. It has been expected that growth in the 2nd half of this year will slow, hence the upcoming results will not be as spectacular as the 1st half of this year. Nonetheless, I believe my counters are still fundamentally strong, and as a long term investor, in the event of a dip, I will add on my positions.
For my portfolio, the decision to add on my positions in Noble when the opportunity presented itself last month proved to be the right move. This month, Noble announced the acquisition of the retail commodity marketing operations of the joint venture between Sempra Energy and the Royal Bank of Scotland. This move will boost the portfolio of Noble and its earnings per share is projected to increase by approximately 10% with this acquisition. This boosted the share price of Noble to shoot up by 8% in a day and it prompted me to sell off part of my holdings in Noble to lower my average buying price to a safe $1.46. I will continue to hold on to this strong commodity counter until fundamentals change.
Another big event for me this month is the announcement of the placement of new shares by Mapletree Logistic Trust. The purpose of this placement is to raise funds for further acquisitions and pay down debts to strengthen its portfolio. Part of the new shares is for institutional investors and part is for existing shareholders, who will be eligible to purchase 2 shares for every existing 25 shares at $0.815. This is an expected move by Mapletree Logistic Trust, hence I will definitely add on my positions in this strong counter, and hopefully be able to apply for excess shares so that I won't end up with odd lots. With further acquisitions up and coming, I believe there is still upside for its yield. Hence when opportunity presents itself, I will definitely buy more shares for consistent dividend play.
In addition, Parkwaylife Reit had a spectacular performance in September until a private equity firm announced that it will sell off its 9.3% stake in Parkwaylife Reit at a price range of $1.56 to $1.62. This move caused Parkwaylife Reit's share price to drop by about 5.4% in a day and I made use of this opportunity to add on my positions in this counter. With this purchase, I also decided to sell off my positions in Yongnam at a slight loss due to commissions to free up some cash for better investing opportunities, as explained in the previous post.
Overall this month has been a good month and my portfolio's unrealized profits rose to the highest level for the year to date. I hope the macroeconomic conditions for the coming months will continue to be sustainable and the upcoming 3rd quarter results will continue to thrive with good dividend payments. It has been expected that growth in the 2nd half of this year will slow, hence the upcoming results will not be as spectacular as the 1st half of this year. Nonetheless, I believe my counters are still fundamentally strong, and as a long term investor, in the event of a dip, I will add on my positions.
My Current Portfolio:
Lessons learnt: A reminder to myself that patience is a virtue. For fundamentally good stocks, continue to hold on to them until their fundamentals changed or their share price outran their fundamentals. Else a good amount of profits will be missed. In addition, remember to rebalance the portfolio by weeding out the losers and holding on to the winners. Selling away underperforming counters to minimize losses is an important skill to learn.
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