Portfolio Review - Nera Tel
It has been a while since i did a portfolio review. There have been a few results announced (including Far East Hospitality Trust) in the last few days, i will do that review over the next couple of days... if i get to do it during Chinese New Year.
My initial position was made on 6 Aug 2012 at 41c, depicted by the green arrow on the picture. This picture will perhaps show you why i am moving away from trading into investing.
The company's share price has moved up from 41 cents to 59 cents, an increase of 44%. I probably wouldn't have traded this due to its low volatility. The reason for moving away from trading is that I should utilize time to my advantage. A good stock will let me sleep peacefully and pay me a nice dividend for holding it. This is passive income.
If i have to keep looking out for the next trade to make money, i will probably be a slave to the market and have to watch it everyday. This can be pretty draining and tiring and not a true financial freedom. In addition, trading is currently not suitable for me due to my work nature where i am always stuck in meetings and can only trade when i am free.
The reason for documenting my "live" results is that i don't want to live a life of regret. I want to proudly show you my "results slips" twenty years down the road. I definitely hope that i can retire before 20 years is up. Another reason is that it will challenge me to think harder as well as to find ideas from like-minded bloggers who have kindly share some of their 'gems' with me much earlier (like Dutyfree and LKN).
Q4 and Full Year results
I didn't really like the Q4 results. It was below my expectation but the full year net profit is still up by a spectacular 42%. I will have to monitor its Q1 13 results closely to see if competition is eating into the margins of Nera Tel. EPS was Singapore 5.36 cents and that translate into a my entry PE of 7.65x but the current valuation is around 11x PE.
The Company announced a 4c dividends to be paid in May. That translate into a current yield of 6.8% (which is still very good!) and a yield of 9.75% based on my entry price. :) It is probably a good thing that the privatisation offer was rejected soundly by the board.
A secret "R" counter
I have actually spotted another company which i want to add to my SRS portfolio but the price has not moved to a level which i am comfortable with. I will share the R counter with you at a later stage.