Tuesday, 24 January 2017

Portfolio 2017: Divest in SPH

Did a fundamental analysis and technical analysis on SPH and decided to cut loss to divest 17 lots to load up war chest.

Why i divest SPH?
Fundamentals have changed. SPH reported 43.8% dropped in 1Q net profit of $45.7M. Revenue also dropped 6%. Media and advertisement revenue will continue to face head winds. From the Technical Analysis perspective, the $3.50 support has been broken and trading at $3.48-$3.49 today. The stock is bearish and it is on the downtrend channel. The next support is ~$3.22-$3.25. Will buy back the counter when fundamental improve.

Source: Chart nexus
Key lesson
Should not fall in love with the stock if fundamentals have changed. Need to manage own psychology and prepare to cut loss. 

Recent Buy
Bought some AREIT in Dec 16 after doing FA and TA analysis.  AReit just released 3Q result. Distribution rose 19.2% y-o-y to S$115.1 million. 3Q Distribution per Unit (DPU) grew by 1.2% YOYto 3.993 cents. This is a strong industrial reit and will buy more when opportunities arise. 

With the divestment of SPH, my portfolio will comprise of REITS only. 

Portfolio (2017)
1. Ascendas Reit         
2. Capitalmall Trust
3. First Reit
4. Frasers L&R
5. Lippo Mall

Disclaimer: The analysis does not suggest buying or selling of stocks listed above. Please kindly do your own homework. 

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