LTC Corporation just released it’s FY16Q4 results today, and this concludes the earnings season for my portfolio. I haven’t looked in great detail, but I did notice LTC Corp declared a 1 cent dividend. This is a surprise as they declared dividends at the end of Q3 in previous years, except this time.
Anyway, with this dividend declared, I updated my personal dividend track record, which I’ve been keeping track of since 2012.
Here it is:
|23/5/2012||Asia Enterprise Holdings||$945.00|
|20/5/2013||Hock Lian Seng||$1,800.00|
|20/11/2013||Lion Teck Chiang||$1,300.00|
|22/05/2014||Hock Lian Seng||$10,610.00|
|10/6/2014||Lion Teck Chiang||$2,376.00|
|28/01/2015||Boustead scrip dividend (15,189 shares)||–|
|21/05/2015||Hock Lian Seng||$39,880.00|
|02/10/2015||Restaurant Brands International||$292.00|
|05/01/2016||Restaurant Brands International||$177.12|
|20/05/2016||Hock Lian Seng||$18,630.00|
As you can see, the total dividends received in 2014 and 2015 massively increased compared to 2012 and 2013. What happened?
The leverage I discussed previously (The dirty “L” word – Leverage) boosted my dividend returns greatly. And that’s just the dividends, not counting the capital appreciation. It’s certainly been profitable, as the boosted dividends alone has covered my cost of capital.
Now that I’ve eliminated leverage this year though, the dividends has dropped drastically.
Of course, this is a simplistic way to look at it, as there are other factors such as the fluctuations in the dividend declared and the timing of my investments and divestments.
It says “NA” for Boustead as I took scrip dividend instead, as well as a dividend in specie.
On a separate note, I’ve revamped the portfolio performance page and gotten even more transparent by listing my transactions in a separate page. This makes me accountable. The transactions will only be updated prob at the end of the month though.
Initially I thought it’d just be a matter of cutting and pasting since I do keep such records on my own. But it’s proven to be much harder, given my lack of experience in writing a blog and my non existent tech abilities. Simple stuff like aligning the tables or adding a column can’t be done directly here. I think.
I don’t think there are any errors, but if there are, I blame Excel completely.
I also bought back the 70,000 Dutech shares that I sold just a few days ago. This little bit of trading around my positions netted me a very nice $1,400 in 3 days. Not too shabby. Even my broker texted me a thumbs up. LOL. Like I mentioned earlier, I am still highly optimistic about Dutech, and my investing thesis has not changed a bit.
I view this trading as just a way to capitalize on the emotions of the market: some report comes out, the media gives it a bit of attention, there’d probably be some chatter about the company in some forums, and it dies down after that, until the next news comes out.
It’s the same with the highly exuberant opinions in the email I received after HLS won the project tender. I mentioned that it’s crazy to suddenly think valuations have shot up over a single, albeit large, tender win. (See comments in earlier posts) The share price went up because of the news (logically), and has since come down a little as I expected.
My SPY shorts are finally starting to turn green today after spending a month or so in the red. I have previously mentioned in earlier posts my pessimism, and my short positions, established at around 217. (Note to self: Timing is crucial when shorting!!!)
Well, the S&P 500 is dropping the past week, and is still dropping hard tonight as I type this.
This is how in my mind, things will hopefully turn out: Yellen raises rates once in 2016 (I’d love twice, but I think they’d raise just once and see the markets go crazy, and they’d panic and back down), the markets drop, volatility increases, the USD strengthens greatly, share prices drop, my shorts go up.
If this scenario plays out, perhaps not even exactly, but just half of it, I’d be a very happy investor. Why so?
- SPY shorts go up
- I’ve a few call options that I sold for nice premiums. Hoping they’d expire unexercised.
- With all the documented divestments, I’m cash rich and waiting for valuations to come down.
- USD-SGD currency pair increases
- After almost 3 months now, I’ve finally narrowed down and am doing intense due diligence on 1 company. Will start to accumulate if the DD checks out. Going into the finer details now, and that’d take me another 1-2 weeks tops. If markets tank now, it’d really help me greatly.
As mentioned earlier, 2H2016 is thus far turning out rather nicely for SG TTI. TTI’s portfolio is likely to beat the given benchmark in 2016, thanks to the recent strong performance of Chesapeake Energy and Valeant.
The timely divestments of long held, major holdings Hock Lian Seng and Metro Holdings have also helped a lot. It’s been some months, and both are still trading below my divested price, with Metro in particular, having literally tanked very substantially in the weeks since I’ve divested. ($0.895 currently vs divestment price of $1.03)
I am not looking at taking up any positions in these 2 anytime soon though, as my reasons for divestment are still valid/not addressed.
I’ve also recently came upon an opportunity to buy a distressed commercial asset. This is something I’m doing intense DD on, as my initial thoughts are that it’s a great opportunity. This is because my initial research tells me that not only is the price a distressed sale price, I think I can asset enhance it and that’d raise the yield substantially from the current yield. (The rent has not been raised in the past 8 years!)
The hesitation I have comes from the fact that:
- I have no prior experience in commercial assets
- As with all properties, the quantum is huge. As mentioned in earlier posts, the property game is like hunting elephants with a shotgun with a single shot. (There are numerous advertisements about buying properties with $0 cash blah blah blah. That sure is an attractive headline to attract eyeballs, but I’d like to think that SG TTI is a bit more sophisicated to believe that.)
- I’ve pretty much just eliminated leverage. Taking on this deal means committing (once again) to a large mortgage.
If I do go ahead, a disproportionately large portion of my OVERALL portfolio will be in property. That’s never been my intention. I’m probably a much much smarter equity/bond investor than property investor.
So obviously, much work lies ahead. Well, I said work but I can’t even describe how much fun I’m having currently. It’s a little scary knowing that being a concentrated, deep value investor, every major decision I make from here are big moves. They’re intended to make a big impact. That cuts both ways, good or bad.
I’d end this with a quote by Jack Ma:
I’ve only 1 year left.