How do I choose what to invest in? It has been a fruitful two months since April, which possibly is the case for most people as market recovers from the dip.
Stock holding as shown on my blog here,
China Everbright (U9E.SI)
First bought on 6th June 2019 at 0.355.
Added twice on 10th & 12th Mar 2020 at 0.26-7.
Added again on 23rd Apr 2020 at 0.21
Currently my biggest holding.
1) It is really cheap and I do not mind getting an offer for buyout (just no low ball offers).
2) China go green by implementing better regulations and environment tax to help fund its environmental policies over the years. Its standard will just go higher and higher.
3) Even under pandemic, similar to electricity, waste water treatment is still a must.
4) Dividend 6%
5) Price per NAV 0.413
6) PE 4.362
YZJ Shipbldg SGG (BS6.SI)
Ms Yang, traded since Aug 2019 swinging up and down. Recently bought again after taking profit from FSL Trust (D8DU.SI) as it declared dividend.
Second biggest holding.
1) Just listening to the Q&A session from FSL Trust (D8DU.SI)'s AGM, gave me huge confidence in Ms Yang.
2) Retrofitting by adding scrubber to 'capture' sulfur to meet IMO 2020 regulation. With an estimate of only 1% of vessels been retrofitted while the rest sat the fence waiting to see its effectiveness, the market potential is huge.
3) Non-stop new deals, it will just keep on coming. However we cannot neglect the possible drop in profit margin.
4) Dividend 4.545%
5) Price per NAV 0.612
6) PE 6.471
My rules of thumb for Ms Yang, anything below $1 is free money.
Yanlord Land (Z25.SI)
Bought since 2nd Jan 2020, being holding since.
Thrid biggest holding.
1) Price per cash at hand 1.018 (Free business)
2) Dividend 6.476%
3) Price per NAV 0.372
4) PE 3.135
Closing comment
I am a cheapo. Hence for me to buy a company for long term, it must have the following attribute:
1) Low PE
2) Price per NAV must be below 1 (Anything above 1, I buy solely for speculation)
3) Must have dividend. I am stupid, I do not know how to see whether the financial report is real or fake. Dividend is a good indicator from my POV.
Disclaimer: Shared opinion on this blog is not to be treated as investment advice to the readers. Please do your own due diligence and consider your financial goals before investing.
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