SRS activities for July and August 2017
How time flies and today is already 1 September...
- Top up $15,300 to my SRS account for 2017, bringing my total capital to $151,725
- Acquired 50,000 shares of Netlink NBN Trust in my SRS Fund and convinced Mrs IPO to buy the 50,000 shares for her retirement
Post the IPO of Netlink NBN Trust, more analysts (especially those who were in the blackout period) starts to release their analysts reports on the Company. You can download the 58 page report by DBS and the 23 page by UOB by clicking on the respective links. Now there are 8 analysts covering Netlink NBN Trust with an average $0.93 target price.
In terms of price movement, it is heartening to see that the price has finally break above the 81.5 cents resistance to close at 82.5 cents yesterday. This is a "giant" so i wouldn't expect it to move fast
In terms of cash flow, I received the following dividends in July and August:
- $500 from UMS Holdings
- $355 from Starhill REIT
- 534 shares of Fraser Commercial Trust (Scrip Dividend)
UMS Holdings announced a sterling set of results in August where 1H 2017 net profit already exceeded that of FY2016 and is rewarding shareholders with a 1-for-4 bonus issues. There was also a 1 cent dividend to be paid in 27 Oct 2017. The results announcement is here.
Ironically, after the results announcement, both DBS and CIMB downgraded UMS Holdings to hold (whatever hold means 🤔)
The share price tumbled thereafter.... and on 29 August morning, Mr. IPO stepped in to support 30,000 shares at a price of 92 cents and see it dropped further to 90 cents at close of the day 😂 The rationale for buying is that at 6 cents dividend a year (my projection), the yield is around 6.5%, which i am happy with. If the company maintains its 1 cent dividend based on the enlarged share capital post bonus issuance, lagi better.
Mr. Andy Luong (CEO) and Mr. Stanley Loh (executive director) then followed Mr. IPO and bought 300,000 shares at $0.905 and 50,000 shares at $0.90 respectively on the same day 😎 (i am pretty sure i bought before them that day).
Based on the additional 30,000 shares of UMS Holdings and the latest projections, passive income for me and wifey will reach $46,822 (or $3,908) per month. The target for this year is to hit $60,000 per year. Just to be clear, the passive income target stated is for the two of us.
Croesus Retail Trust (non-SRS holdings)
After my previous post on CRT - Time to say Good "Buy", I received another reminder to vote! 😂. The poll which i ran also drew 78 responses and the majority (53%) polled said that the yield is too attractive to give up without a fight. You can still vote if you want to here.
One of the strategy which i am contemplating (despite my kacang putih holdings) is to sell the existing shares at current price (say $1.155). If the vote goes through, i "loses" $0.015 cents). If the vote didn't go through, i expect the price to correct downwards to between $1 and $1.10, of which i can then load up more shares. Is there any chance the acquisition price will be further improved by Blackstone, i think the chance is low. So based on probability, it may not be a bad idea. 😋
Post the recent purchases, my cash level in SRS account has dropped to $21,495. I was contemplating another counter that is yielding 10% per annum but it is rather thinly traded. Let's see how it goes!
Here is the update for now. Happy SRSing!