Sunday, 30 April 2017

April's Portfolio update

Finally we are at the last day of April 2017. As most of the companies had their Annual report out and AGM done, it is time for 穷小子, to update his portfolio.
Don't have any much significant changes to his portfolio to date, except for the small purchase of Singtel and Starhub. Main reason to scoop this small portion is due to the recent sell down after the TPG's Australia news and average down, on Singtel and Starhub respectively.

Year 2017
Total dividends: S$2457.18
Average dividends per month: S$491.43
Average dividends per day: S$16.27

Oil & Gas

Saturday, 29 April 2017

OCBC 80th Annual General Meeting

穷小子 not intending to blog about this initially, but there is something he must share. Attended the AGM yesterday, and OCBC's CEO shook hands with 穷小子. Wahaha!! Not that 穷小子 is some kind of VIP, but the shaking of hands is because Mr Tsien is courtesy and polite, and greeted us with a Good Afternoon. Is a simple gesture, but is the effort which he had made counts. Feels so appreciated when he says Good Afternoon and Thanks us for coming. He don't have to do so, but he did. Applause!!
He walked from the front row and to the walkway column, where 穷小子 is sitted, to shake hands with each of us. By the way, all of these were happened very early, 10 mins before the financial performance presentation starts, and very much before the AGM.

With the presentation of the financial performance start..

穷小子 had to admit that he got lost when CEO is presenting the annual financial performance, so wouldn't share much of that in details. 穷小子 is non-financial background after all. Lol.

CEO shared with us that oil price at $70 will be required for the Oil and Gas industry to break even, and $60 for the lenders to break even. To further supplement, CEO also mentioned that OCBC can't confirm if the worst for O&G is over, but pointing out that 2017 will be a better year than the year before.

A shareholder question about the status of the divestment of United Engineers, and will there be any special dividends after the divestment?
- CEO answered that it is premature to discuss on the divestment status right now.

Another shareholder pointed out that continuation of this news will demoralized the shareholders and the public. Is there any ways or methods which OCBC's management can assist or expedite on the progress?
- Although OCBC is a stakeholder of UE Limited, UE works as an individual entity and will leave the decisions to UE's management.

China is second largest contributor to the profits after Singapore.

and so the AGM begins...

Management commented that higher interest rates is good for banks generally.

Chairman commented that OCBC CEO's remuneration had the most reduction among the 3 banks' CEO.

Why is there no Scrip dividend? Another shareholder commented that it is disturbing that some years have and some do not, which resulted with odd shares remains.
- Chairman answered that OCBC is in a strong capital position. This decision allows them to deploy the cash productively, and secondly, scrip will caused the diluting of share prices.
Ironically, most of us want scrip. Hmm, does this means the company has many money lying around? If dividend payout without scrip options means that OCBC have many cash, so does that means OCBC have less cash if with scrip options, and which means bad for the company? Guess there is no one plus one kind of direct answer. Management had to review the company's capital position at the right time to decide whether to payout in scrip or not.
Can see that most of the shareholders are chanting, "We want Scrip! We want Scrip!" Very unlikely that there will be any scrip dividends for 2017 after hearing from Chairman and CEO.

A shareholder asked why isn't there any 80th anniversary special dividends? The same question was raised during the last AGM.
- Same answer. The management will review its capital at the right time and decide accordingly. Guess that means they had decided not to give.
On a second thought to this, if the capital review on the scrip dividend decided to pay out dividends in cash, then it is contradicting to the above as in why not use the capital to give special dividends? Hmm. Or at least increase the dividends, which 穷小子 is expecting an increase in dividend. This link to another question, but Chairman stated that we should be looking at the payout ratio. Is like egg first or chicken first. Haha. But anyway, the trust is still with the OCBC's directors and CEO, and believe their decisions are made based on the company's best interest.

There is no "hungry ghosts" in this year's AGM. The doors are open and all the "hungry ghosts" are allow to get their snacks sets before the AGM started. This prevented the ugly scene which was experience last year. The whole AGM is enjoyable until Resolution 4(b). A lady keep pressing questions on the diversity the director, e.g. gender, race, nationalities, etc. Chairman had answered them, but she keep pressing on. The lady is completely wasting everyone's time. What is the point of asking these questions? Are you planning to enter the Board of Directors?

As 穷小子 is leaving the AGM, he had decided that OCBC is safe with the management's hands, especially with CEO's spearheading the businesses' operations. Until then, see you in 2018.


Tuesday, 25 April 2017

Happy First Birthday, Poorlearnrich

Happy First Birthday, 穷小子!!

There is no birth date for 穷小子 literally of course, but it will be his first anniversary since his first post. Times flies, while still remembering from how much he had learned along the way for the past year. It has been a while since the last post, and just saw that Poorlearnrich is moving towards 50k views. Thanks for all the supports.. ^^

Pardon for no much significant posts for these past few months, perhaps there may be nothing much to talk (complains) about when Mr Market is in good mood. Market is still not stable as usual, with the UK's early election, tension between US, China and North Korea, French presidential election, and the list continues. Nonethelessly, STI managed to hit a high gain of 10.73% year to date, before coming down to today closed at 9.83%. A nice run so far for 2017.

Attended few AGM this year and quite glad with the results, especially with CapitaComm and Mapletree Comm. Never tired to emphasis again that these are my right choice last year. Hehe.
On the other side, Singapore's Telcos industry is still worrisome, with the disappointing results and the top shareholders from M1 approached potential buyers to sell their combined stakes. This somehow gives 穷小子 an idea that the main shareholders are "begging" for buyers to buy from them and they want to get out as soon as possible. In normal circumstances, if a potential buyer makes an offer to buy, the company may became a gem to be discovered down the years, but M1 seems opposite now. Not trying to talk down M1 in here, but it happened. M1 is still about 10% of 穷小子's portfolio.
Added a small position of Starhub recently with a decent yield of about 5.6% if the payout remains at $0.16 per year. The main reason for this purchase is mainly to average down the price. As mentioned before, local Telco industry will be a long winter for the next few years, so current strategy is to average them down slowly.

Next is review on Noble again. Yes, 穷小子 said before that he will no longer covers Noble again, but this serves as an statement to reminds himself that he had made a right choice to cut it. Although is too late, $780 remaining still serves as a good use for 穷小子's expenses. Noble had announced shares consolidation last month, which 穷小子 had commented when he cut his loss and in his last post about Noble. What can be the next step? Issue rights again? Rinse and repeat? This time really is the last on Noble. :)

Most of the companies had reported their annual reports. 穷小子 will share his portfolio in his next post!!

Last but not least. 穷小子 just came back from his Turkey trip. It is a beautiful country must say, accompanied with a very long history. Shall try to share about it if had the time.