My holdings - December 2012

I hold a few REITs such as Mapletree Commercial Trust (MCT) (IPO lots) and Sabana, both of which are bought (luckily) before the awareness for REITs set in a few months ago. I feel that the prices are rather on the high side at the moment, especially for MCT, therefore, even though they have been providing me with good dividends every quarter, I am hesitant to add on to my position at this moment in time.

Recently, I acquired a few lots of Singtel when Temasek went on a selling frenzy. I thought myself lucky at that time as I had queued to buy at $3.19, and got them for $3.16. Haven't quite figured out how that came about. Anyhow, prices were hovering about $3.19 - $3.23, and dropped to $3.12 at one point since I bought them. A couple of days ago, it suddenly went up and is now at $3.31. I intend to hold on to the stocks, in view of the dividend payout end of December at 6.8 cents and Singtel being a blue-chip company.

I also hold a few small and mid-cap companies, reason being they are relatively low priced thus allowing me to buy more lots with my limited resources, and have greater potential to scale greater heights. I bought some Second Chance recently, in view of the attractive dividend payout of 3.8 cents, making it a dividend yield of 8.9% at its last done price of $0.425. In fact, I had sold the stock for a small profit after the results were released recently, when prices reached $0.45 at one point. I was looking for an opportunity to pick up the shares again, and was happy to do so when prices went down to pre-result release levels.

Another stock that I am holding is Global Premium Hotels, the hotel/hospitality arm of Fragrance, although that stock is not doing as well as I had expected and hoped. It is currently hovering around $0.235-0.245, which is lower than its IPO price of $0.26. A few reasons why I bought the stock:

a) it is selling at a premium compared to its IPO price. In fact, it is (I read somewhere) selling at a premium compared to the price at which Fragrance acquired it for $0.25.
b) Tourism in Singapore is (and still is) booming. Although there are uncertainties going on in the global financial markets, demand for economy hotels should still be there.
c) The management explained the decrease in profits during the previous quarters due to one time fees incurred as a result of IPO listing. Hence, it is reasonable to expect that profits should improve in the subsequent quarter(s).
d) Maintaining dividend payouts for 2012. So far, it has been $0.002 per quarter. That works out to 1.7% yield for half a year or 3.4% annual yield based on its last done price of $0.235.

I will watch and see if their results improve in the next quarter before deciding whether or not to divest in this stock.



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