Sunday, September 23, 2018

War Among the Titans

This article contains PART of my 1st Scorecard Newsletter written on 22 Aug 2018 for my Moat Scorecard subscribers. 

This is the 1st write up of the Scorecard Newsletter just for you, as a subscriber. 

This write up will comes with full disclosure on the companies that I will be discussing, even if they are in my portfolio. Do note that this write up will be reproduced on TUB Investing Blog 1 month later without full disclosure.

Before I start, I like to discuss about the consequences that occurred during the Turkey-US crisis. 

Basically, market went down quite drastically and it caught quite us by surprise. This signifies the volatility of the current market – a simple discussion between countries can result in multiple ripples globally. 

This is most probably the Nth time I had said it – as a retail investor, we need to invest in a strong fundamental company to be able to avoid these ripple effect. Companies with strong moat will have strong fundamentals. With strong fundamental, companies will be able to avoid these ripple effects. But if a “wave” comes along, regardless of its fundamentals, no company will be able to avoid that. But fundamentally strong companies will most probably be able to recover faster.

Anyway back to the main topic…

For this write up, I will be writing about the Moat of the Telecommunications companies (aka Telco) listed in SGX – Singtel, Starhub and M1. 

Once again, let me emphasize that Moats are referred to as competitive advantages a business has over its competitors in order to protect its long-term margins.

This also has something to do with the Big Ideas Investing Theory strategy I came up lately. I tend to look for moats within these Big Ideas. Because for these Big Ideas, I intend to keep for a longer period of time, and also to expect their margins and returns to increase over time.

I refer to a quote by Robert Vinall - "The vocabulary of moat is international.  There are basically seven moats the world over: brand, switching cost, regulation, patents, cost advantage, network effect, and culture. In a great business you can spot them a mile off.  If you are not sure what a company's moat is then normally it does not have one or at least not a wide one."

Although slightly different from the 5 different moats (Intangible Assets, Switching Cost, Network Effect, Cost Advantage, Efficient Scale) stated on the net, but I think that Robert Vinall had just broken down the moats more detailly into 7 different versions.

So why did I choose Telcos for the 1st write up?

This is because I assume that any investor will have owned one of the Telcos in their past or current portfolio. Furthermore, these 3 companies have quite a high moat score.

Based on the 7 different kinds of moats described by Robert Vinall – brand, switching cost, regulation, patents, cost advantage, network effect, and culture – I could potentially identify at least 2 moats that each Telco have.

1. Switching Cost – This is easy to identify with. Customers of the Telcos have a high switching cost as they have to sign at least a 1 year plan with a Telco in order to use their services. After signing on to a plan, a customer will need to pay an high one-time fee in order to exit a relationship with the Telco. Even if you have completed your contract, switching Telcos will be hard if you want to retain your phone number. Furthermore, there are always extra freebies to influence existing customers to re-contract with the Telco.

2. Regulation – Prior to opening up to the 4th Telco (TPG) to enter the Singapore Market, the Telcos were protected from competition by the Singapore Government. If any customer wants to have a mobile phone or to use data on the go, they will need to sign up with either 1 of them. 

Nevertheless, even with Moats, Telcos share price have came down significantly since Dec 2016 when TPG won the bid to be the 4th Telco in Singapore. The downward spiral of the share prices occurred, even though TPG has yet to rolled out any plans and require at least another 1.5 years before they can officially operate in Singapore.

Just looked at the change in Share Price below for Singtel, Starhub and M1:

Furthermore, we also must not forget the other competition from the MVNOs – especially in my opinion, MyRepublic and Circle Life.

At this point I like to highlight another quote from another famous investor, Mohnish Pabrai, stating, “Even businesses with durable moats don’t last forever”.

With existing competition from MVNOs, it is important to review the changes in the revenue and net profit of the Telcos for the last 2 years in order to understand the impact of the current competition and how it could possibility change when TPG enters the Singapore market.

As per table above, despite revenue increasing, net profit of the Telcos has decreased. This has further contributed to Starhub and M1 reducing their dividend for the latest reporting year.

Other than competition, in my opinion, there could potentially 2 other reasons that caused the net profit to decline. 

Failure to innovate and react to the changes in the industry – It seems that prior to the announcement of TPG as the 4th Telco, the existing Telcos did not innovate much from their existing business. Thus, by rushing to innovate now, the Telcos have to incur extra expenses.

Bidding of Bandwidth as per April 2017 – The bidding of the bandwidth in 2017 resulted in higher loans taken by the incumbents to pay for their winning bids. Thus, higher loans resulted in higher financing cost, which eventually could have reduced the net profit.

If you are interested to know more about Moat Scorecard, you can sign up for the latest workshop to understand more.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Wednesday, September 19, 2018

How To Invest During A Weak Market?

Market has been moving on a downward trend. So how has your portfolio been doing?

If your portfolio is down more than 3%, you will have been better off investing in the STI ETF.

On the other hand, you may have exited many of your positions and will like to invest in companies that could probably be the fastest to rise back. You will be looking for companies that will be able to produce a “V” shape recovery and not a “U” shape recovery.

Being the scorecard creators, Simple Investor and I had continued to create our 3rd Scorecard – The Moat Scorecard (yes, I am repeating…).

We believe that a company with a strong moat will be able to withstand the volatility of our current market and even if its shares are on a downward trend, it will probably provide the investor with a “V” shape recovery.

For this post, I will not be repeating what about what the Moat Scorecard can do. But I will like to highlight on the backtesting we had done for this scorecard.

Moat Score against Total Returns for 3 Year Holding Period

Moat Score against Total Returns for 5 Year Holding Period

Through the graphs, you can see that if you invest in company with a Moat Score of 60 to 80, you will be getting a decent return of 25% to over 50% based on either a 3 years holding period or a 5 years holding period.

Average Return vs Moat Score
Furthermore, we have plotted the Average Return vs the Moat Score along with the removal of outliers that skews the data. 

It seems like holding a company with a 80 to 90 Moat Score for 5 years will potentially give you a very good return of over 200%.

Thus, if you wish to know more about the Moat Scorecard, Simple Investor and I will actually be conducting a workshop on it.

The details of this investing workshop is as follows: -

Venue: 73 Ayer Rajah Crescent. The Meeting Point, Event Hall 1, Singapore 139952 
Date: 24th September, Monday 
Time: 7pm to 8.30pm

Please click on the LINK to purchase your tickets!

**Use exclusive promo code to get $6 OFF: EB37

It has been such a long time since both of us conduct a workshop together and we have been planning this workshop for a VERY LONG TIME.

Eventually, we just hope everyone whom attended this workshop will be able to return home learning something new about investing!

See you there!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Sunday, September 16, 2018

A Letter to My Fundamental Scorecard Website Subscribers

Dear Subscribers of Fundamental Scorecard,

Thank you for continuing to subscribe to us. The database has been updated.

How have you been? As the 3rd quarter draws to a close, this year seems to give us a peak towards a pre-crisis market.

Having a long-term mindset, we try our best to understand Mr Market while holding our core investing principles firm.

This resulted me in changing The Ultimate Scorecard once again (without change name). As I have stated previously, I removed the dividend scorecard portion and expanded on the valuation portion.

Currently, the expanded valuation portion acts as a separate calculation of the valuation of the company based on the free cash flow it generated.

It is called Estimated Valuation.

It is an estimation of the value of the company based on

1. 0% growth; and 
2. a series of discount rate ranging from 15% to 30%; and
3. The last 5 years of free cash flow it generated

There is a second check on the valuation based on Graham Method. However, this is for the defensive investor whom looks for positive net profit and positive equity in a company.

Even if Graham Method is unable to produce a value due to the company reporting losses or having negative equity, the Estimated Valuation of the scorecard may still inform the user to buy the company at the current share price due to the series of free cash flow it has generated over the last 5 years.

Another way you could use the Estimated Valuation portion is to find a share price where you may sell the company. Furthermore, do also note that many S-Chips and RTO companies may passed  the Estimated Valuation of the scorecard. Please ENSURE you knew what the company is doing prior to investing in it.

An extract of a Estimated Valuation
Do note that this section is meant to be read separately from the value scorecard portion. Both portions could indicate different results, but each portion is just an indication that the company maybe undervalued at the current share price.

The best company is always one that passes both portions.

Once again, thank you for subscribing.

If you have any question, feel free to email or contact us!


If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! 

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote

Monday, September 10, 2018

My New Role

I may seem to be sharing less on InvestingNote, My Facebook Page, and on my blog.

This is because I am currently in a new job and a totally new role.

When I say it is a new role, it actually meant that the job title did relate to what I had did over the many years, BUT THE ACTUAL ROLE IS TOTALLY DIFFERENT.

The actual role and the expected role is like ketchup and chili sauce. Rightfully, it cannot be mixed. But they mixed it together. Previously, I was always able to tell black and white. Now, I find myself stepping into the grey area.

One of the reason is because this a lean organization.

This is only into my 6th day in the new role and I met lawyers, customers, came out with policy, met referrals and even looked at pricing and budget.

I am like running my own business => Stress + No Time.

During the last 6 working days, I also did not look at the market and I realise the STI and the market has fallen quite a lot. 

But amazing, my portfolio only lacks behind the STI ETF (including dividends) by 0.2%.

Anyway, after all the thoughts above, I have to say I have yet to regret my decision in taking the leap of faith moving from a "9 to 5" role to a role in a Fintech company.

For all that I experience for these 6 days, I will never ever be able to do that if I continue in a 9 to 5 role.

In addition, this role have also given me more thoughts about the progress of fundamental scorecard website and what I could possibility do in the future.

Let's just enjoy the moment now and work harder.

If you find that I am sharing less, please understand for now.

Thank you for reading.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! 

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote

Friday, September 7, 2018

An Interview With The Trendlines Group

Recently, I had emailed 2 separate companies' investor relations department. Both of the companies are in my portfolio but only 1 had replied. I am still waiting for the other company to reply...

For those that have been waiting for this interview, sorry for the delay.

Here it is - An Interview with The Trendlines Group!

Do note that some of the questions came from other investors of The Trendlines Group.

1. Trendlines Group (aka Trendlines) has a decrease in the portfolio value as per the latest financial statement. May I know if it is due to writing off of companies?

No companies were written off in Q2 2018.

Only one company was written off in Q1 2018 due to lack of sufficient technological advancement and funding (amounting to approximately US$0.8 million - reported in the Notes to Income on page 14 of our Unaudited Financial Statements Q1 2018). The decrease was mainly due to a decrease of US$2.3 million in the fair value of Stimatix GI Ltd., which was because of a change in the net present value of projected cash flow due to an adjustment in the discount rate used to calculate the present value and increased sales model accuracy as we observe the product launch.

As explained in our press release, the external valuation company uses the average of the 10-year and 20-year Corporate Bonds (Aa/AA) Median Yield, for the discount rate. As the market rates fluctuate, unrelated to the Stimatix GI Ltd. product, the company uses the updated rates, which had an effect on the calculation, but not necessarily reflects what will happen in reality.

2. As per the past and present presentation PowerPoint, Trendlines has shown that many of the Top 10+1 companies have achieved FDA clearance. I understand that only with FDA clearance, then the product can be sold in USA. However, what happens if a product is unable to achieve FDA clearance? Will Trendlines still be able to sell in other markets?

Many companies apply for regulatory clearance in a number of markets – for example, CE for Europe, Amar for Israel and CFDA for China – depending on their marketing and commercialization strategy.

A company like ApiFix has multiple regulatory clearances in many countries and has performed over 230 surgical procedures (in Europe, Israel, Canada, Singapore) prior to FDA clearance.

3. In addition to the above question, what are the advantages and maybe the disadvantage of achieving FDA clearance?

The advantage is that receiving FDA clearance gives a company access to one of the biggest medical device markets (the US). I don’t think there are any disadvantages.

4. There are currently 49 companies in the portfolio. How many companies have been written off? Able to disclose the average amount of each company that was written off?

According to slide #16 of our investor presentation, which is available on the investor section of our website and updated every quarter, we have written off 30 portfolio companies since establishment.

We do not have a figure for the average amount of write-offs.

5. In addition to the above question, how many companies have Trendlines exited? What is the expected potential % increment for each future exit?

Trendlines has exited 8 companies. The details can be found on page #7 of our investor presentation and on this page of the investor section of our website:

As to the expected potential percentage, as you can see by the table, it varies greatly depending on the company, its market and the stage it was sold. This makes predictions on future exits and their potential very difficult.

6. It is stated that Stimatix was valued at over fifty million in the annual report by independent valuer. Is the methodology disclosed? What are the assumptions and inputs to the valuation model, such as projected sales, market share, margins etc? Knowing these will provide investors with info to judge on the valuation.

The valuation of Stimatix that appeared in our annual report for 31 December 2017 was US$ 42.6 million. We cannot disclose the inputs into the valuation methodology since they would require us to reveal confidential B. Braun information.

In general, our fair value measurement is explained in Note 6 of the Financial Statements, page 110 of the Annual Report for FY2017.

7. How long will the royalties of Stimatix last? 10 years or 20 years? That will give us a rough guide of how much the dividend will be based on its current valuation of over 50M SGD.

B. Braun agreed to be disclosed as the acquirer of Stimatix GI, but not to disclose the terms of the deal. As we respect their right as a private company not to disclose this, we are unable to comment on this.

8. This is a question regarding one of the ostomy competitor's product, TIES, which uses a titanium ring implant. How is it comparable to Stimatix AOS 2000? In addition, is this a direct threat to their share in the ostomy market? Are there any other new products in the market that are affecting their Stimatix valuation?

The TIES product claims to be for ileostomy patients, while the Stimatix product is for colostomy patients; these are two different segments of the ostomy market. Moreover, the TIES product seems to require a surgical procedure since it is an implant, while the Stimatix product does not require any additional surgical procedure.

9. Apifix has applied for US FDA for its device Mid-C in April 2018, and a study (still recruiting) will be conducted within the period ending in 2022. Does that mean any exit will only come after it obtains the FDA?

Not necessarily. Other companies have exited prior to receiving FDA clearance, but FDA clearance is frequently considered an important inflection point.

10. How long is the average period between adding a company to the portfolio and then potentially getting an FDA and then exiting? 

Again, this is very difficult to predict as each company functions in a different market.

Some companies, such as Gordian Surgical received FDA clearance within 4 years of its establishment, but other may take longer. As noted above, FDA is not necessarily a perquisite for exiting.

11. 2 senior executives (CFO/VP BD) had left the company this year. Is it something related to restructuring or the actions taken by the company to strengthen strategic support by these senior roles? or the two left on voluntary basis?

As we noted in the announcements that we published, in both cases the cessation of their work at Trendlines was not connected to the restructuring or cost-reduction program. Gabi Heller and Moshe Katzenelson both left on a voluntary basis to pursue other professional directions.

12. The placement done last year to institutions/wealthy individuals' subscriptions at 14.03 cents were supposed to provide some support/or even boost the share price, but it obviously did not turn out that way - the price has further deteriorated since then. Are these institutions/private investors still hanging on?

We cannot release any information about our shareholders, other than what is publicly available.

13. Is there any share buy-back plan in place?

No, not at this time.

In Short

I do hope that. after reading this interview, investors will have a better understanding of The Trendlines Group. As of now, I am still vested in the company and mostly will stay an investor for some time. I guess, as I had said previously, do not expect short term gains if you are vested in this company. This is a very long term investment.

Please do your own due diligence before you invest this counter (if you knew what it is).

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! 

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Saturday, September 1, 2018

Big Idea 10

Now you must be wondering, "where the h*** did this idea came from?"

Firstly, this is not a new idea. It has been in my portfolio since February 2018. As readers of my blog, you will have known that I had been consolidating my portfolio. But this idea has been in my portfolio and I realized I wanted to keep it. Thus, I decided to deem it as part of my Big Ideas Investing Theory.

Before I continue, it is important to note that Big Idea 10 is not a company. It is a Real Estate Investment Trust (REIT) in the retail industry.

Did you just said: "Oh My God? A Retail REIT? Don't you know that eCommerce is taking over the world? Retail shops has been closing here and there! Even Forever 21 is left with 1 shop in Singapore. Why did you choose a Retail REIT?"

To answer that, I have to state that I believe retail space are still required.

1. eCommerce giants has went into the retail space, although these businesses are minly supermarkets. 

This video shows Jack Ma showing us what he deems as "The New Retail". On the other hand, Amazon has also gone on to acquire Whole Foods, and started supermarket without checkouts.

2. "Online to Offline" (O2O) 

As per article, O2O commerce is a business strategy designed to bring online customers to brick and mortar locations as well as create a seamless digital experience before, during, and after. In the article, it also states that despite the superb growth in online sales, offline sales will still contributes to 88.1% of the global retail market.

3. Expansion of Online Shops

Closer to home, we have one of the most successful blogshop in Singapore - Love Bonito - opening a flagship store at 313@Somerset. Other blogshops, such as Hervelvetvase, MDS, as well as Love and Bravery, also having retail stores along the malls of orchard road. Reebonz, an online platform for buying and selling luxury products, also has a store in Vivocity. In my opinion, this just emphasize that the continuation expansion of an online platform could possibly just be offline. 

4. A Place to Hang Out

This is just my personal opinion. I believe people still want to hang out together. No one wants to just stay home and buy stuff online. Thus, shopping malls also becomes an alternative for people to hang out and spend their time together.

Therefore, these are the reasons on why I chose a retail REIT.

Reasons Why This REIT Qualifies as a "Big Idea"

1. Master Lease/Long Term Lease Agreement Contributes Over 49% of Gross Rent

With these agreements in place, there are less stakeholders for the REIT's management to deal with. In addition, this factor provides a stability to the occupancy rate and this will also lead to a stability on the dividend that it gave out.

2. Share Price Within Range 

Since June 2013, the share price of this REIT has been ranging between 60 cents to 90 cents. I believe one of the reasons is due to the law suits when it comes to the renewal of master lease agreements. The possibility of the master lease not being renewed could have caused the share price to drop.

However, if you have continued to purchase this REIT whenever the price drops, and along with a stable dividend, the dividend yield for this REIT remains high.

3. Master Lease Agreement Brings In "Atas Brand"

Over 20% of the gross rents comes from this master lease agreement that brings in "Atas brands". My point is that I do not think these brands will just leave the retail space when their lease period is up. This is because they will continue to have sales.

Not many will just buy a LV bag without looking at the actual product. Since customers will continue to go to their shops, there is no point to leave this retail space. Thus, these brands will still continue to lease the retail space for years to come.

4. A Global Retail REIT

Despite having over 60% of the gross rent coming from Singapore, but there is still some diversification in terms of the collection of gross rent geographically, as compared to other retail REIT in Singapore.   

5. No Rights Issue Since 2009

Other than having a 1 for 1 rights issue in 2009, this REIT has not declared another rights issue. This adds on to the stability of the share price over the years.

In Short

To be frank, I were never an income investor. Whenever I invest in REITs, it was more of a capital gain factor due to a foreseeable increment in dividend. In other words, you could say I were trading REITs.

However, I choose this Retail REIT as Big Idea 10 mainly due to the expected stability - stability in dividend due to diversification and master leases that led to a general share price range.

The strategy is to buy whenever the share price drop, so that the dividend yield will eventually be much higher. When its share price rises and Big Idea 10 contributes too much to the portfolio, sell some.

To me, investing in Big Idea 10 is like putting money in a fixed deposit with high interest rate. It is also the only REIT I invest in currently.

Please do your own due diligence before you invest this counter (if you knew what it is).

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! 

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Monday, August 27, 2018

A Thank You Post

This dedicated post is for those that went over to support Simple Investor and I at Invest Fair!

It was a great success! Thank you for coming!

Feedback from the crowd are taken seriously. Simple Investor and I will continue to improve in order to provide the best for subscribers.

Anyway, interestingly, this event also open my eyes to the 4 different group of investors.

1. The Informed Ones

There are many uncles out there who just invest in REITs and dividend-paying stocks. They explained to me, because of their age, they just want to collect dividends.

I am not against this way of investing. But in my opinion, it will be still good to diversify 10% or even up to 20% of your portfolio in other companies.

2. The Newbies 

There were also many people who want to learn to invest or want to invest. Some were at a loss and do not know where to start - probably downloading the InvestingNote app is a good 1st step.

Others probably needed more help in terms of looking at financial data and I believe signing up for our Moat Scorecard system will assist them in this area.

3. The "Portfolio Already Very Full" ones

The summary of this group is "相见太晚". I had spoken to some of the investors whom are in this group. They have probably 30 to 40 companies in his portfolio because "my broker recommend this and that" or "I saw or heard this guy talking about this company". At the end of the day, I am unable to fully assist these investors without understanding what companies they are holding. But the first step for you is probably - Cut away those excess positions and stop hoping.

4. The Investors of US-Listed Companies

Many have asked us whether we provide the same system for US-Listed Companies. After all, the term "economic moat" is popularized by Warren Buffett. This will probably take some time. But don't worry, we are looking into it!

Image taken from
Once again, thank you for coming and spending your time in listening to us explain about Moat Scorecard!

We will also like to thank InvestingNote for allowing us to present at the Invest Fair.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Friday, August 24, 2018

My Long Term Returns

This will be some sort of revelations for on my portfolio.

I had never really documented down my long term returns as compared to the market. But while calculating today, I just felt maybe it will be good to put on the record of my past returns till 25 Dec 2017.

Why 25 Dec 2017? If many of you remembered, I restarted my portfolio on 26 Dec 2018. So from then on, the calculation restarted as well.

Before I continue, I like to inform my readers that Simple Investor SG and I will be presenting our latest scorecard system at Invest Fair at Suntec tomorrow (25 Aug 2018) within the InvestingNote booth at 11am and 3pm. If you cannot make it for that timing, Don't Worry. We will still be there between 10am to 5pm on Saturday.

Back to the main topic...

In the past, I had 4 different portfolios to test out different strategies over different period of time. Thus, I will compare my long term returns (including dividend) against that of buying a STI ETF over a similar period.

Do note the following:

1. Share prices of STI ETF is taken from Yahoo Finance
2. Dividend declared for STI ETF is taken from SGX website.
3. Returns = [A-B+Sum of all dividend accumulated during that period]/B

Portfolio A - Period [1/4/2011 to 25/12/2017 - 6 years 8 months]

Portfolio A Returns - 44.82%
STI ETF Returns - 28.29%

Portfolio B - Period [1/11/2014 to 25/12/2017 - 3 years 1 month]

Portfolio B Returns - 18.62%
STI ETF Returns - 13.02%

Portfolio C - Period [1/4/2015 to 25/12/2017 - 2 years 8 months]

Portfolio C Returns - 32.38%
STI ETF Returns - 7.35%

Portfolio D - Period [1/8/2015 to 25/12/2017 - 2 years 4 months]

Portfolio D Returns - 18.58%
STI ETF Returns - 11.78%

Prior to concluding, I must stress that my returns are not fantastic. I have known retail investors whom have did so much better than me over similar period of time. But I am just glad I had at least outperformed the market despite which strategy I choose.

In Short

From the above returns, it seems that whichever strategy I took, my compounded gains were much higher than investors whom purchased the STI ETF (including dividends), if calculated over a period of more than 2 years.

This, again, emphasize on the importance of investing for the long term and also choosing the correct company to invest in at the right share price (not necessary required to be at the right time).

Nevertheless, I am not downplaying the strategy of investing in STI ETF. I had also told friends to invest in STI ETF if they are worried about which company to choose to invest in.

Then again, I have also told them they can sign up for the Moat Scorecard system in assisting them to choose the right company at the right price.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Thursday, August 23, 2018

A Collaboration with InvestingNote

It has been another 7 to 8 days since I blogged.

Firstly, I didn't do so well at the SGX Bull Charge Stock Challenger. It seems that trading is the way to go. But never mind, I am not disappointed. Since I am never/yet to be at the leader-board, let me show you what I bought.

Anyway, I did think about it - I could possibly liquidate some and buy AEM for example. But I guess I just want to stay true on my strategy and theory. Oh well, as per Benjamin Graham said, "In the short run, the market is a voting machine but in the long run, it is a weighing machine."

So lets go back to the main topic...

Remember the collaboration I was talking about when I complained "Time not enough"?

Yes... at last, Simple Investor and I had launched our collaboration with InvestingNote after several months of discussion!

Its called "Moat Scorecard"!

It is basically a scorecard theory where we quantify moats of over 600+ companies within SGX.

Each company will have a report as per the picture below:

In short, Moat Scorecard is a report that measure a business’ moat in terms of strength, durability and trend. In addition, it compares the score with companies in the same industry, and provides an analysis of the company’s fundamentals. These includes balance sheet strength, share dilution and financial strength. There is also a handy guide for price analysis using various methodology, with an share price indicated where value would likely be present.

As per Warren Buffett had said, "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

If you like to know more about it, click here for more information.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Wednesday, August 15, 2018

Let's Try Our Best!

Update: Due to 2 of my choices' share price are less than 20 cents (1 of them being the unstated new Big Idea), they are not part of the stock list. Instead, I will substitute them with 2 other Big Ideas that seem to be on a downtrend.

I had joined SGX Bull Charge Stock Challenge competition, which will start tomorrow.

Image Taken From InvestingNote
Although I have stated previously that I will just join for fun and doubt that I will win, but since I have registered, I decided that I should just try my best.

But how should a long term investor be investing for just 2.5 months?

My Strategy:

Firstly, I will still be sticking to my Big Ideas Investing Theory strategy. This is because I don't think an investor can change their strategy in such a short time.

Furthermore, if I purposely change my strategy just to suit this competition, I feel I will be "cheating" myself and my readers.

Secondly, having already released my 9 Big Ideas and, out of the 9 Big Ideas, 3 of them will be releasing their full year report during this competition period. Thus, I will be investing in these 3 Big Ideas for this competition. If the results are great, it will be allow the share price to rise significantly.

Thirdly I will also be investing in a 4th company for the competition. This is a company which I had long invested in but only deem it as a Big Idea recently. So if you follow me on this competition, you will then know which company is this new Big Idea.

Lastly I will break the $50k evenly into the 4 Big Ideas. Thus, if any of the 4 Big Ideas performs badly, my portfolio will not drop significantly.

In Short

With this strategy, I hope I will not linger at the bottom of leadership board.

Do note that this 4 companies currently contribute about 24% of my actual portfolio. If the above strategy perform well, it will also do good for my actual portfolio.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! 

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Sunday, August 12, 2018

Update For My Readers

There is just not enough time for the roles that I am currently taking on – Blogger, Co-founder of Fundamental Scorecard and Investor/Fund Manager.

Furthermore, I will also be working in a new fintech environment next month. With this change, I am trying to catch up on my reading to gain more knowledge in this new area. This is a new challenge for me and I am really looking forward to it.

And… I will also be having a new collaboration soon!

With limited resources (time), I seem to be too diversified - similar to my past portfolio. With each additional role, less time is spent in the previous role, resulting in producing lower quality "products".

If I want to improve, I will need to be more focus.

With this new perspective, I decided that I will be putting more effort towards my Fundamental Scorecard subscribers as well as on the new collaboration that I am working on. (For the new offerings, I guess only the subscribers will eventually know.)


Basically, what I intend to do is that I will be writing around 4 articles maximum a month (Currently, I try to write 6 to 8 articles a month), which will then give me more time to do research. I hope this will eventually translate to better quality articles. 

Eventually I hope you will still benefit from my sharing and continue to "waste" you time here wisely.

Thank you for reading.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! 

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Sunday, August 5, 2018

My Faith Has Paid Off

Today, I will like to talk about my holding in Quarterhill Inc.

Before I continue on the main topic, I like to inform the readers that I will be joining the SGX Bull Charge Stock Challenge. Although I maybe putting my reputation on the line, and I will most probably lose as the tracking period is only 2.5 months, but I will just join for the fun of it. I will try my Big Ideas Theory Strategy with a slight tweak for this competition. In view of this, I will probably reveal some of my Big Ideas. Stay tuned!

Image Taken From InvestingNote

Back to Quarterhill Inc...

As per Wikipedia, Quarterhill Inc. (Quarterhill) is formerly known as WiLan Inc., and it is a Canadian public technology holding company, based in Ottawa, Ontario. It was founded in 1992 as a wireless technology company. In the mid-2000s, it gradually transitioned into a patent licensing company. In 2017, it renamed itself Quarterhill, and is attempting to become a holding company specializing in the Internet of Things. It is listed on the Toronto Stock Exchange and NASDAQ.

In summary, Quarterhill share price has been on the downtrend since the start of the year. This is because the earning for the last 2 quarters has been below expectation and huge losses were incurred in the last quarter.

Screenshot from Seekingalpha
When I first purchased this company, it was at a share price of US$1.9+. Over time, I had to average down more than 3 times in order to achieve a much more acceptable share price.

So what has kept my faith in Quarterhill? 

1. Positive Free-Cash-Flow - Despite making losses, the company is still able to generate high amount of Free-Cash-Flow.

2. Strong Balance Sheet With No Debt - Based on its latest financials, the company has a current ratio of over 4.11x and only a gearing ratio of 0.15x without any debt!

3. Margin Of Safety Over Its DCF Valuation - There is significant margin of safety from my calculated DCF Valuation, despite indicating no growth and high discount rate of 20%!

4. Transcript Of Management Discussion - I have gone through the transcript of the management discussion at least 3 times. There are many indications that have showcased the management is positive about its performance this year!

Thus, it was basically the theory of my Ultimate Scorecard as well as my belief in fundamental investing that has kept my faith in the company.

In Short

My faith was duly rewarded recently. The share price have regain and bounced back over 29% due to the following:

Screenshot from Seekingalpha
To sum up, if we invested fundamentally, we should not be worried about the short term changes in the share price. This is because time will eventually show that who is right.

Please do your own due diligence before you invest this counter.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! 

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Thursday, July 26, 2018

Updates To Big Idea 3

After my update to Big Idea 2, I decided to also do an update on Big Idea 3 after re-reading its annual report.

Big Idea 3's Chairman always give a very insightful context in his Chairman's Statement. Last year, he initiated a cautious approach, but the results turn out to be very different - which is great. Because this shows that the management is not aggressive and have a plan for the future. In fact their numbers tie in with their execution - showing successful integration of the strategy in the business.

This year, here are some extract from the Chairman's Statement that got me excited for the future:

"...As we begin a new phase of network enhancements and measured retail expansion, coupled with our overall inventory having been rightsized to our desired level of stock turnover, it is highly probable that this pace of cash generation will begin to moderate in the coming year..."

"...The luxury watch market has enjoyed a pronounced turnaround in the last 12 months - driven by a strong global economy and revived demand from Chinese shoppers..."

"...This positive uptrend continued in 2018, with like-for-like exports rising 10.1% in the first quarter..."

"...We expect the upturn to continue for the next 12 to 18 months..."

"...Despite the good news, the watch industry is still in the process of undergoing substantial change..."

"...Several notable developments in online retailing for luxury watches have taken place in 2017, and this is only the beginning..."

"...And for third party retailers like <Big Idea 3>, the only way to ensure long term success is for us to forge indelible partnerships with the right brands..."

"...Whilst the industry’s focus is on creating a digital response to the disruption that technology and e-commerce are having on the future of the watch world, our response has been to spend the past nine months rebooting our attitudes and approach towards client facing interactions. How, and how often we engage our clients, and the service experience we provide them to gain more understanding of their needs and form even greater intimacy with those customers. We do this because we acknowledge what Four Seasons founder Isadore Sharp has often repeated, “The simple idea that if you treat people well, the way you would like to be treated, they will do the same.” It is therefore our organisational desire to build a high and consistent standard in every one of our boutiques within our entire retail network, with aspirations to be the Four Seasons of the specialist luxury watch retail industry..."

That's all the highlight of the Chairman's Statement.

It basically explains the next quarter will still be positive and this environment could continue at least another 9 Months. But change will still continue to occur in this industry and companies within this industry has to be prepared.

It also state Big Idea 3 will continue with its strategy as per last year and continue the good work done.

In Short

Despite some investors doubting my choice of this company as a Big Idea 3, I still believe, with an sustainable strategy in place and an excellent management that is able to execute the plan, my choice of listing this company as a Big Idea is a correct one.

Nevertheless, in investing, numbers still speak louder than words. In addition, the last quarter of 2017, the company had performed slightly worse off than its biggest competitor despite leading it for the first 3 quarters of 2017. As of now, I will just have to continue to keep a look out on its next quarterly report.

Please do your own due diligence before you invest this counter (if you knew what it is).

If you are interested to know how to measure a moat, do sign up with us to get the latest score of  the moat of all the SGX counters now! At only $10 a month!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Tuesday, July 24, 2018

Updates To Big Idea 2

Recently I spoken to this acquaintance that was quite knowledgeable on the Australia side of things. I always wonder why Big Idea 2 has a significant exposure in Australia. Thus, this gave me an opportunity to ask more about the property market in Australia and especially those projects relating to Big Idea 2.

Picture taken from
Below are the information I remembered. Do note that I did not verify all the information and these are just pieces of our conversation.

1. The Australia Government made it hard to purchase properties in the country (read article).

2. Australians are not good savers and due to Basel ruling, banks are unable to lend out too much.

3. On the other hand, Australia Banks are also very conservative. During GFC, these banks had almost no exposure. However, being conservative, they also did not “go out and grab more market share”.

4. The big 4 Australia Banks also supports New Zealand. Due to regulations and restrictions, these 2 countries can already provide them A$20Bn of net profit. That is why they can continue to stay within their boundaries.

5. Australia is self-sufficient due to their huge amount of resources. They can ignore the world.

6. In Australia market, everyone is mostly after yield. No one should expect huge capital gains. It's a market for capital preservation rather than making significant gains.

In Short

With the above information, I became more aware of why Big Idea 2 is interested to invest/expose itself in Australia. This is because, overall, Big Idea 2 is a conservative company. From my understanding, its’ management does not take big risk. This knowledge have strengthen my view on Big Idea 2.

Big Idea 2 will be announcing their Full Year Results in August and I am looking forward to a better set of results.

But at the same time, I do not think there will be special dividend this year. This could potentially reduce the share price gain despite possibility of having a good full year results. 

Please do your own due diligence before you invest this counter.

If you are interested to know how to measure a moat, do sign up with us to get the latest score of  the moat of all the SGX counters now! At only $10 a month!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Sunday, July 22, 2018

Categorising My Big Ideas Investing Theory

I have read a few articles on Charlie Munger recently. The articles explains how he influence Warren Buffett from investing in “good business at wonderful prices” with a more activist mindset to buying “wonderful business at good prices”.

I felt similarities in the stories from the way how Simple Investor SG had influenced me to how I invest lately. Previously I have always been a more “value-oriented” investor, but even since we started Fundamental Scorecard website together, I have been looking at his Full Analysis scorecard (which includes the recent Moat scoring). Then a few months ago, I started on my Big Ideas Investing Theory which has been significantly influenced by him (as explained in Big Idea 1)

Since the start of Big Ideas Investing Theory, I came up with 9 Big Ideas – Some were long held companies and some were just purchased a few weeks ago. 

Recently, I tried to further categorize my Big Ideas into certain theories in order to understand how I could continue to breakdown and understand this Big Ideas Investing Theory. In addition, I tried to understand more about the moats lately and this article had deep correlations with Michael Porters – Porter’s 5 Forces theory.

I remembered someone told me before on reading on the book about Porter’s 5 Forces. Maybe it is time to do so! 

Before I proceed, I like to briefly explain (again) that Moats are essentially durable competitive advantage.  

Major 3 Categories of Big Idea Investing Theory: 

Widening of Moat

Widening of Moat - Companies that are still growing. It may not have a huge competitive advantage now, but you can see the increase in competitive advantage in their letters/annual report/financials. Thus, these companies may not be the top tier companies, but it could eventually reach there.

Big Moat

Big Moat – These companies are most probably big market cap firm with huge market share/global presence. They could be market leaders with HUGE market caps and it will be hard for new entities to out-muscle them within the same space. However, Big Moat also does not mean its moat will not be reduced. Thus, Big Moat companies should not consist of only a buy and hold tactics.

Undervalued Company with Huge Cash Pile 
Undervalued Company with Huge Cash Pile – Companies with huge cash pile and still undervalued at the current market price relates back to my older investing theories, especially so in value investing. Even though I had change in the way I invested, I still believe in investing in companies with a huge cash pile with a much lower Price to book value. The huge cash pile will allow a company to engage in actions that could push the share prices higher, such as acquire companies or give out special dividends.

It will be interesting to see how my portfolio will change in August as many companies announced their results. I do have 3 different companies within the Big Ideas Investing Theory that will announce their full year results and I am looking forward!

In Short

The purpose of writing this post is: 
1. Allow myself to further understand about my current investing strategy; and
2. Emphasized that moats are important in such an investing theory; and
3. To explain that one’s investing method could change as you progress along your investing journey. 

In addition to point 3, with so many business disruptions in the world and volatility in today’s market, we should not be afraid to change our views or investing methods. But despite these changes, our main mindset should not change. 

For me, my thoughts of fundamental investing has never change. I only enhanced the methods revolving around Fundamental investing.

Please do your own due diligence before you invest in any of the companies above.

If you are interested to know how to measure a moat, do sign up with us to get the latest score of  the moat of all the SGX counters now! At only $10 a month!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Monday, July 16, 2018

From “Not-So-Big idea” To Big Idea 9

My initial draft did not conclude this purchase as another Big Idea. But after completing the draft, I decided that this investment is a Big Idea.

I will not be hiding the identity for this company because, at this point in time, I will have already revealed the company name on my Facebook Post.

Big Idea 9 became the talk of the town once the cooling measures were announced by the authorities, and within the same period, a bigger rival got listed.

This was evidenced from my research as well. There were so many articles written by analyst and bloggers (Thelittlesnowball, Motley Fool, Heartland Boy, PropertyinvestSG) that it was hard to find hidden information that could possibility sway me to the “other” side.

Do note that this investment is very new and resulted in my portfolio increasing to 16 companies.

I am NOT taking a step back in my consolidation of my portfolio. I have been looking at Big Idea 9 for many weeks before I decided to invest in it. The recent share price drop of more than 50% from its peak has make it too tempting not to continue to say “No”.

Reasons Why This Counter Qualifies as a "Big Idea"

(Do note that I will not be talking a lot on the financials in this post because it has been stated so many times in other blogs or write up.)

1. History

To really understand the history of Big Idea 9, you need to understand its history. The company was initially purchased by Northstar Group from Hersing Corp for $130 Million in 2013.

Then after almost 4 years, it was relisted at 66 cents which valued the company at $234.43 Million (Number of Shares = 355 Million).

At that price, it was an 80% gain for Northstar Group. Based on the number of shares, the breakeven share price for the initial purchase amount by Northstar Group is $0.366.

However, this was the price 4 years ago. For a Private equity firm that continues to own 72% of Big Idea 9, I believe the wait must be profitable.

After incorporating a 5% compounded gain over 4 years, the “supposed” minimum share price by Northstar Group will be $0.443. In fact I believe this is still too low for the private equity firms.

Nevertheless, this minimum share price is about 35% below the current share price, which in my opinion is not a huge buffer and Northstar Group will most probably not let it continue to slide further.

2. Time Lapse And Projects Secured

New cooling measures are announced on 6 Jul 2018. But the 2nd Quarter Results will be from April to June. Thus, the 2nd Quarter results that will be announced most probably in August 2018 should not reflect the sudden drop in property purchases due to cooling measures.

Furthermore, Big Idea 9's Q1 results has been great and it should flow into its Q2 results. This is similarly expressed in its latest annual report, which states that “To date, Big Idea 9 has already secured more than 20 projects to be launched in 2018, with more than 11,000 residential units available for sale. This is more than double the 4,800 units (from 9 projects) in 2017 and signifies greater growth potential for Big Idea 9 and more sales opportunities for its’ salespersons in 2018”.

3. Enblocs And QC Certification

This was bought up by SG TTI on IN under Kenny Chia's Post. I guess it stuck a chord in me and it made me re-wire my thoughts. 

From my research on the Singhaiyi post, you just need to look at the number of Enblocs completed/announced since the end of 2017 till June 2018! Just imagine the number of developments that will be continued to announced throughout the year, as well as the projects already secured by the company as stated in the point above.

Screengrab taken from
Although one can argue developers can always delay the announcing of the projects, but they will still be required to sell all of the units within 7 years of completion. They have to make sure that these developments have to be SOLD one way or another. 

During the not-so-long-ago initial cooling measures, if you had invested in developers then, you will have realised the actions developers take to “escape” such measures were never beautiful.

Furthermore, as expressed in the RHB analyst report, “For one, developers have started countering the measures with “more realistic” pricing and the offers of discounts of 5-10 percent in new launches, RHB said, adding that should draw more first-time buyers. Developers were also offering higher agency commissions of 3-4 percent at some launches, compared with the typical 1.5 percent, it said. It also noted that around 200 more units were sold last week at new launches, despite the measures.

Furthermore, around 35 percent of its first quarter gross profit from the “very stable” segments of non-brokerage income, leasing and HDB resale, it said.”

This was one of the reasons that resulted in me having a lack of confidence in its long term financials. However, after writing out my thoughts, it actually gave me more confidence of the company’s long term financials.

Do note that additional cooling measures will have impact on most probably in Q4 2018 and Q1 2019 financials, but at the current price, this impact should be “a piece of cake” for the EXPERIENCED LONG TERM HOLDING INVESTORS. 

4. Future Expansion 

The point of Future Expansion has been bought up by Heartland Boy in his initiation report. I do believe this will be a major catalyst for Big Idea 9 in the few years ahead. 

Screengrab taken from Heartlandboy Blog
5. High Free Cash Flow

I always liked FCF generation companies. I believe, out of all the figures bought up by various bloggers and analyst, this was missed out.
Cashflow Statement from Annual Report
6. Property Agents Are Not Property Developers

Property Agents Services will be required, pending full digital disruption. However, one can always argue that SGCarmart has been around for the longest period of time and car dealers continue to be around. 

Furthermore, do note that an oversupply in developments/cooling measures will caused major dents in a developers’ financials, but not for Big Idea 9 which just provide the agencies services. 

In Short

Thank you for reading till the end.

Big Idea 9 is actually APAC Realty Limited.

Before I conclude, I must highlight that all big ideas have its risks. For APAC Realty Limited, its recent purchase of the new building will definitely impacted its cash holdings and its balance sheet will most probably be worse off.

Nevertheless, in view of the various positives and the significant share price drop, I had decided to invest in APAC Realty Limited and make it one of my big ideas.

Moving forward, it is important to continue to purchase the shares in batches as I believe the road ahead could be rather volatile for the company before it goes on a huge uptrend.

One of the major catalyst is the most probably on the company's ability to break out of Singapore and diversifying its revenue in different geographical regions. After all, the cooling measures will only impacts property developments within Singapore. 

Please do your own due diligence before you invest this counter.

If you are interested to know how to measure a moat, do sign up with us to get the latest score of  the moat of all the SGX counters now! At only $10 a month!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Friday, July 13, 2018

Big Idea 8

Although I have revealed my portfolio and the remaining of my Big Ideas recently, but I have been wanting to writing about this company that I purchase since June 2018 – my Big Idea 8.

I had previously stated I will reveal the company on my Facebook Page post upon reaching 20 likes for that post. It hit 68 likes in almost 3 hours. I was flattered.

Despite the short vested period, I have actually known this company since I started practicing value investing. In fact, I will say this company was initially made famous by Bigfatpurse (Currently known as Dr Wealth) at that point in time.

Reasons Why This Counter Qualifies as a "Big Idea"

1. Understanding Of The Total Asset and Return of “Operating Assets”

Return of Asset of the company based on the latest annual report is 7.65% (Net Profit of $4.5 Million vs Total Asset of $58.9 Million).

Nevertheless, it is important to identify what the assets are made up of before making any assumption if the ratio is good.

Out of $58.9 Million of the Total Asset:

$17.2 Million belongs to investment property;
$8.2 million belongs to financial assets, and
$27.3 Million belongs to Cash and Cash Equivalent.

Thus, the remainder are operating assets amounting to $6.2 Million.

This meant that with only an operating assets of only $6.2 Million, the company is able to generate a net profit of $4.5 Million. This meant that the “Return of Operating Assets” is actually a whopping 72.5%!

This meant that majority of the assets are generating low return and investors will deem this as the management do not know how to use the cash.

But in my opinion, despite the low return, these assets will still be able to generate a return for the investors for the long term. A return of cash in form of dividend will most probably be a 1 time boost for the share price, which will not have a long term effect. Furthermore, these assets are also not really crucial to the company and can be converted to cash if required/necessary or when opportunities appears.

2. Improving Financials

A picture speaks a thousand words. Take a good look at the figures.

3. Undervalued Despite Price to Book near to 1

The Chairman’s statement is what I deem as the most important portion of the annual report.

In its latest annual report, the Chairman statement stated that:

“The Group adopted the cost model to measure its investment property. The carrying value, including the self-occupied freehold office unit, was S$19.144 million as at 31 March 2018. Fair market value as determined by Colliers International Consultancy and Valuation (Singapore) Pte Ltd, was S$33.65 million. The excess of fair market value over carrying value was not recognised in the Group’s balance sheet. The property is unencumbered.”

If investors do not dig deeper into the financials, he will not know that the investment property is currently valued at cost – which is a missed conception.

4. No Debt

The company do not have any debt and holds very little liabilities. This can also infer as the company is able to leverage up if it wants to.

5. Strong Business Model with a focus on R&D 

From my readings, the company have a focus on research and development and seem to be working with some NASDAQ listed companies.

As per Chairman Statement in the latest annual report, it has also stated that “two patents on 4x4 wave 2 wireless module we filed in FY2018 in China were approved in April 2018, giving us a good platform to market our proprietary products”. This meant that it could possibly expand its footing in China.

These are potential catalyst that can push the revenue to greater heights in future.

In Short

Many of the information stated above can be found from articles in NextInsight, threads in Valuebuddies, and Simple Investor FB page.

Prior to my purchase of the company, I was still a bit skeptical about purchasing this company. It was through many of the readings, and verification of each reading that convinced me of purchasing this company, and listing it as a Big Idea.

In my opinion, Big Idea 8 is a company with a widening moat.

Please do your own due diligence before you invest this counter (if you knew what it is).

If you are interested to know how to measure a moat, do sign up with us to get the latest score of  the moat of all the SGX counters now! At only $10 a month!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Sunday, July 8, 2018

My 15% Portfolio - Changes After 2 Quarters

It is the time to review "My 15% Portfolio". The previous review in the 1st quarter can be read here.

However, do note that despite aiming for a 15% gain this year, the market has not been kind to me. The current change in my portfolio is VERY FAR from it and it will be revealed later on.

Do note that this portfolio was inherited from the portfolio at end of 2017 and their respective share price was restarted on 26 Dec 2017.

Thus, any gain or losses was just based on the price changes over the last 6 months.

Prior to taking a look at the changes in my portfolio, let me emphasize on the following:

1. This portfolio review is calculated from 26 Dec 2017 and the aim is to review the total portfolio gain after 1 year.

2. The counter's initial share prices are their respective share prices on 26 Dec 2017.

3. The gain and loss stated is just a simple calculation of the difference in share prices, ignoring the transaction fees.

4. At times, if stated, the gain could include dividends.

5. This review will include my overseas counters in USA and Hong Kong.

End of 1st Quarter 2018
End of 2nd Quarter 2018
Singapore Telecommunications Limited
Singapore Telecommunications Limited
Chuan Hup Holding Limited
Chuan Hup Holding Limited
Captii Limited
Captii Limited
NikkoAM-StraitsTrading Asia ex Japan REIT ETF
Sold All At 2% Loss
Japan Food Holding Ltd
Japan Food Holding Ltd
Netlink Trust
Sold All At 5% Loss
The Trendlines Group Ltd
The Trendlines Group Ltd
Challenger Technologies Ltd
Sold All At 15% Gain
Colex Holding Ltd
Sold All At 25% Loss
TSH Holding Ltd
Sold All At 20% Loss
Starhill REIT
Starhill REIT
HongKong Land USD
HongKong Land USD
Sold All At 20% Loss
Sold All At 2% Loss
M1 Ltd
Sold All At 1% Gain
Ellipsiz Ltd
Ellipsiz Ltd
Starland Holdings Ltd
Sold All At 30% Loss
Sysma Holdings Ltd
Sysma Holdings Ltd
CWX Global Ltd
Sold All At 20% Loss
Singhaiyi Group Ltd
Singhaiyi Group Ltd
The Walt Disney Company (USA Counter)
The Walt Disney Company (USA Counter)
Quarterhill Inc. (USA Counter)
Quarterhill Inc. (USA Counter)
Win Hanverby Holdings Ltd (HK Counter)
Win Hanverby Holdings Ltd (HK Counter)
Powershares QQQ ETF (USA Counter)
Sold All At 5% Gain
Goldpac Group Ltd (HK Counter)
Sold All At 3% Gain
Cowell E Holdings Inc (HK Counter)
Sold All At 15% Loss

Additional: The Hour Glass Limited

Additional: Powermatic Data Systems Limited
In addition to the current counters in the table above, I have also bought and sold:

Dutech Holdings Ltd - About 5% Gain

I have stated previously that I am moving into a more focused strategy and created a list of 9 Big Ideas that contributed more 60% of my portfolio. With that change, I have reduced the numbers of companies in my portfolio from 26 to 15. My portfolio is currently down about 7.84% since 26 Dec 2017. I am currently holding on to about 17% cash.

Reasons for the drop in the portfolio were due to the following:
1. Singtel and Ellipsiz are 2 of my biggest holdings and they are on a downward trend;
2. My current overseas counters are also in the red very badly. 2 out of the 3 overseas companies have lost more than 20% on paper.
3. Only 2 out of 9 of the Big Ideas are green. The rest are red.
4. Trade war rumors and cooling measures have also caused the market to fall, and indirectly affecting my portfolio.

In Short

The market has not been nice to the retail investors. Many reasons or excuses could be used to explain on why did this happens. But if we believe in our method and due diligence, we should always be able to sleep well at night.

Last night, when cooling measures arrive, I was still able to sleep well because I did my homework.

Here are some past articles I wrote this year about the initial short market correction:

Steps To Take In A Market Correction

More Thoughts From This Market Correction

And also a post on the Ultimate Scorecard method I use as well as some words or wisdom:

The Ultimate Scorecard Criteria In "Words"

Words of Wisdom and Big Idea 2

Hope these articles will assist you to sleep better during these "sleepless" nights.

Please do your own due diligence before you invest in any of the stocks in my portfolio.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! Only about $10 a month!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.