Divested at an average price of $0.79/share. With a holding price of $0.5314/share, this gives net profit of +88.22% with +47.76% of capital gain and +40.46% of dividend return. Since invested in 2006, after 16 years of holding, this gives an annualized return of +2.47% (exclusive of dividend) or +4.03% (inclusive of dividend).
Technically, it is not "divested", I just farmed it off to the Trading Portfolio and using it as a tool to churn profit. With the "divestment", Genting share overtook SingTel (14 years) as the longest holding stock since started investment in 1993. Ironically, Genting was also the first stock that I have built up in the 2nd Investment Portfolio.
Why the divestment since still in the money for it ?
Firstly, fundamentally, it is not in a big clear sky after the last year Yokohama scrapped the idea of building an IR in which Genting was one of the favourite to win it. Though it is not a totally end game as Japan will have other cities looking to build the IR which Genthing will be hoping to win it. Presently, Genting main revenue is the Singapore IR. Though, it is planning on expansion, afraid, the upside to the revenue will be limited. Genting needs the Japan IR to boost its revenue to the next level and when that can happen is very uncertain at the moment.
Secondly, with reference to Investment Portfolio Restructuring, dated 27th Dec 2021, Genting is not an Income stock (Reits) and its doesn't totally fit into the criteria I have for the Strategic Section either. Like SIA-SATS and SingPost, it has to go from the 3rd Investment Portfolio that am restructuring to.
Thirdly, after so many years in holding Genting (16 years), the price movement is more like a trading stock rather than an investment stock and it's just a prime candidate to use as a tool to churn profit.
With this divestment, am 95% done to restructure the Investment Portfolio.
