Sunday, July 9, 2017

Battling On 4 Fronts

Other than busy with changes in T.U.B Circle and Super Scorecard, I have also gotten my keys to my HDB BTO flat. Thus, these few weeks I will be extremely busy and I apologize for a lack of updates in this blog.

But don't worry, as the post on the upgraded scorecard and the post on the new "technology" counter that I invested in will be out soon!

Nowadays, market has been stagnant and at times, seems to be on the downtrend. Many of my watchlist counters' prices are at very tempting level for me to enter. But my portfolio is currently already engaged in 4 different "battles"!


Battle 1 - Netlink Trust IPO Application
This is the first time I tried applying for placement shares. Thus, I have to allocate some cash for this battle. If I am not allocated any placement shares, then I will apply for the public offer.

If this was a week earlier, you will hear me saying that I will not be applying for this IPO. However, this IPO seems like it will be "very hot" and I believe the share price will shoot up on its debut.

On the other hand, if I lose this battle (which meant that I did not get any IPO shares), I will just loss some application fees.

Thus, this battle is worth the fight as the potential upside is very high!

Battle 2 - CDL Hospitality Trust Excess Rights
When CDL Hospitality Trust announced their rights issue, it gave me a view that this could be a very similar opportunity to the one I experiment with Sabana REIT. The spread between the rights issue price and the share price at that time was rather huge.

I purchased the mother shares, which will allow me to apply for the rights issue and also the excess rights.

My belief is that CDL Hospitality Trust's share price will return to the norm eventually (Read Bullythebear's post), and if I am able to get all my excess rights, the upside could be huge!

However, if I loss this battle (which meant that I did not get any excess rights), I will be stuck with some of CDL Hospitality Trust's mother shares. This does not seems that bad as well.

Battle 3 - $ To Average Down ComfortDelGro and M1

ComfortDelGro share prices has been on the downtrend lately, falling all the way to 52 weeks low. I did not really know why did this happens. But many blame it on Uber and Grab disrupting their taxi business.

M1 has also been on the downtrend and is expected to be continue this way due to these 2 announcements (such as 1 and 2) by MyRepublic. Furthermore, if the strategic review by SPH, Keppel T&T and Axiata Group Berhad did not materialized then we should expect M1 to fall MUCH MORE.

Therefore, if these 2 blue chips continue to drop in price, I must have enough money to average down.

I will loss this battle if I do not to have not enough money to average down when the time comes.

Thus, I must pace myself correctly when I average down.

Battle 4 - $ To Averaging Down The Rest Of My Portfolio


Other than the counters stated above that has been on the downtrend, other penny counters in my portfolio such as Singhaiyi and Ocean Sky International has also been falling in price.

I will also need to allocate some cash for me to average down these counters. Similarly, I will lose this battle if I do not have enough money.

Therefore, in additional to pacing myself, I may also have to sell some counters to increase my warchest.

Eventually, these are just 4 battles. My portfolio is the war. 

You can lose some battles but you must win the war!

As stated in the past few posts, there will be changes to T.U.B Circle and Super Scorecard. Please like our Facebook page (T.U.B Investing) and follow me on InvestingNote for the latest updates!

8 comments:

  1. Confirm you will loose the battle with CDL H excess rights. It's so hot. Netlink trust IPO you will get your placement shares. it's not so hot. Don't expect the price to shoot up a lot. it's not hot. Good luck in averaging down with CDG

    ReplyDelete
    Replies
    1. Hi Sureshkumar,

      But I don't really hear people talk about CDL and kept hearing everyone talk about Netlink.

      But I agree the Netlink trust calls has came down.

      Regards,
      TUB

      Delete
  2. NetLink IPO will not be that hot actually. 5+% yield together with the large large issuance in billions, will soak up the demand and liquidity in singapore

    ReplyDelete
    Replies
    1. Hi Seeking Private Returns,

      So I guess I will get my IPO Application. Great.

      Regards,
      TUB

      Delete
  3. Congrats on getting your HDB keys! That is already a battle won! Haha.

    ReplyDelete
    Replies
    1. Hi KPO,

      Haha... you are the first to say that. I guess that's the most important small piece of information in this article!

      Regards,
      TUB

      Delete
  4. If my memory serves me right, Macquarie Infr (MIIF), Cityspring, Hutchisono trust...all prices have dropped from IPO price...

    Coupled with a seaonsally weak second part of the year, for me, prob the risk return is not favourable for this one.

    I agree with Suresh that placement you would very likely get but you lose 1% in commission i think....prob through ATM is better..

    I recently bought comfort as i think uber and grab has been overly hyped and its kinda unfair to the price....still betting on this one though

    ReplyDelete
    Replies
    1. Hi Sgdividends,

      1% in commission? Haha... I didn't know that.

      I remember Cityspring rise and fall on the first day though. Never mind. Let see how it goes.

      Regards,
      TUB

      Delete