Journey To Retirement Part 19.2 -- Lendlease Reit

Fully divested Lendlease Reit at an average price of $0.5149 just before STI crashed to the 3,500 level.  With the divestment, due to its capital-less nature, the sale proceed received is 4.17% of the capital of the Income section of the portfolio.  In addition, the amount of dividend collected along the way amount to 1.17% of the capital of the Income section.  As such, this gave a total return of 5.34% with reference to the total amount of capital injected in the Income section of the portfolio.

Lendlease Reit was first added in 2020 adopting the capital-less strategy.  It was initially classified under the Strategic section.  Then in 2021, further quantity was added after swapping CapitaR China Trust (also capital-less investment) for it.  This was later relocate from Strategic section to Income section.  So, after holding for 5 years, decided to part way with it.  This investment has been a neither here nor there type of investment for the past 5 years.  Coupling with the observation from my developed Ichimoku AI system indicating a bearish outlook despite STI scaling higher and higher (refer here), just divest it and take the cash.  Pretty straight forward, no second thought.  After divestment, STI crashed like nobody business to the 3,400+ level and that directly indicated that my developed Ichimoku AI system has passed its first real test with flying colour in predicting for STI (refer here).

This is not the first time I did strategic divestment before market crashed.  The first was in 2019 based on Elliott Wave that was analyzed and foreseeing a potential crash in market and it happened in 2020 due to Covid-19.  This is the 2nd time I did strategic divestment before market crashed already but this time is based on the Ichimoku AI system that I have developed to predict market direction.  

From this divestment, the total realized profit for the portfolio increased from +21.43% to +22.11%

Journey To Retirement Part 12.1 -- Kep DC Reit

Year 2024 is a landmark for Kep DC Reit investment.  It marks a decade of holding for this investment.  This is the 8th stock after Genting Singapore, First Reit, SingPost, CapitaMall Trust, SIA, Kep Corp and MapletreeInd Trust that I've held.  While the like of Genting Singapore, First Reit, SingPost, SIA and Kep Corp have all being divested, Kep DC Reit remains invested along CapitaMall Trust and MapletreeInd Trust.  Similar to MapletreeInd Trust, am a Day 1 investor for Kep DC Reit.   Vested during its IPO at $0.93/unit which was listed on 12th Dec 2014 at Singapore Exchange.

Still can clearly recalled back in 2014 when Kep DC Reit was launching the IPO came across a blogger recommending a no-go for this IPO based on financial ratio comparison with another data center reit.  However, I was pretty clear and straight forward Kep DC Reit was for me.  To put it straight, my reason wasn't based on any financial fundamental but purely on from experience what I foresee what the future in need of.  Having working in R&D for decades, knowing how importance data management is and at that time in 2014, e-commence was starting to get popular coupling with the common sense that institutions like bank, telcos and exchange centers will have more and more data to be managed.  Engaging a data center to do the job will be much more cost efficient than doing it in-house.  Looking at after 10 years how Kep DC Reit has performance since IPO, whether said blogger regretted his/her recommendation then definitely not my problem and is super glad that I didn't follow said blogger recommendation.

Kep DC Reit has done a couple of right issues for these 10 years.  The first was in 2016 for 274 units for every 1000 units at preferential offer price of S$1.155, the second was in 2019 for 105 units for every 1000 units at preferential offer price of S$1.71.  The third was the latest this month of 86 units for every 1000 units at preferential offer price of S$2.03.  While I did participate in the 2016 and 2019 right issues, the latest one I decided to skip as I don't see the need for it despite certain degree of dilution.  Was there really a dilution effect for my holding in the latest right issue ?  Along with the 3 right issues, Kep DC Reit also did several private placements during these 10 years periods.

With the right issues, my initial holding increased by 66.67% and holding price increased from S$0.93 to S$0.9946.  So is there really a dilution effect with the latest right issue ???  At the price of S$2.21 (as of 13th Dec 2024), my holding is having an unrealized capital gain of 121.55% and a dividend return of 76.04%.  This making an annualized return of +8.28% and +11.52% w/o and with dividend respectively.  Though the dividend return has yet to hit the 100% milestone thereby making my investment mathematically impossible to lose money, based on the dividend payout record, I should be able to achieve that in 2026.

Journey To Retirement Part 22.2 -- CryptoCurrency

Couple actions in the CryptoCurrency  investment in the month of Apr 2024.   

Firstly, another profit taking following the first in February 2024 (refer here).  It is the same coin again, reducing 48% of the holding plus another "minor" coin (fully divested).  This time netting a realized profit of 7.43% with reference to the cost of the Income section making it a total of realized gain of 9.81% with reference to the cost of Income section YTD.  

Secondly, took the current "bull run" in cryptocurrency made some adjustment to the holding of the cryptocurrency.  2 tokens were being swapped to one of the main coin to beef up the holding of that main coin.  1 "minor" coin was swapped to one the main coin to make it a more balance holding in those main coins.  After this adjustment, the portfolio now consists of  15 coins, 1 token and 4 coins (undeciding what to do with it).

Thirdly, continue the ever ongoing accumulation of 3 of the coins at $0 cost to be used as 奇兵 in 孙子兵法.

Lastly, merged the Blockchain section of the Investment Portfolio to the Strategic section of the Investment Portfolio.

The above strategic actions mainly acted according to 孙子兵法的第四篇 - 军形篇，第五篇 - 兵势篇，第六篇 - 虚实篇以及第八篇 - 九变篇.   

Journey To Retirement Part Part 21.1 -- Fu Yu

In the month of April 2024, divested Fu Yu at price $0.132 after holding it for almost 3 years.   It was acquired in May 2021 under the Strategic section of the Investment Portfolio at $0 cost.  With the divest, this resulted in a realized gain of +2.72% with reference to the cost of the Income section.  The amount of dividend collected so far was 0.49% with reference to the cost of the Income section.  This gave a total realized gain of +3.21% with reference to the cost of the Income section.

Reason for the divesting is not on the bearish perspective of the stock market going forward but a strategic move.  Initially, it was an ease to accumulate more quantity at $0 cost but that became more and more challenging for the past 1 to 2 years.  As such, it is strategically wise to divest the holding so that the focus could be directed to other more meaningful strategic positions.

Just some food of thoughts for STI to share about.  US market has already trading way above 2007 peak.  Japan market has also finally move above the 4 decades ago peak 4 and not to mention some other global markets also performing the same.  China and Hong Kong markets were underperformance among global markets mainly due to the fundamental issue in China economy which affected Hong Kong.  On the other hand, Singapore economy isn't in the bad shape as those of China and Hong Kong and yet STI still way way below 2007 peak.  Something isn't right fundamentally for STI, a potential hidden underlying issue that unfortunately nobody knows what it is, I'm afraid.

Journey To Retirement Part 20.1 -- InnoTek

In the month of April 2024, divested InnoTek at price $0.4677 after holding it for almost 3 years.   It was acquired in May 2021 under the Strategic section of the Investment Portfolio at $0 cost.  With the divest, this resulted in a realized gain of +4.48% with reference to the cost of the Income section.  The amount of dividend collected so far was 0.21% with reference to the cost of the Income section.  This gave a total realized gain of +4.69% with reference to the cost of the Income section.

Reason for the divesting is not on the bearish perspective of the stock market going forward but a strategic move.  Initially, it was an ease to accumulate more quantity at $0 cost but that became more and more challenging for the past 1 to 2 years.  As such, it is strategically wise to divest the holding so that the focus could be directed to other more meaningful strategic positions.

Just some food of thoughts for STI to share about.  US market has already trading way above 2007 peak.  Japan market has also finally move above the 4 decades ago peak 4 and not to mention some other global markets also performing the same.  China and Hong Kong markets were underperformance among global markets mainly due to the fundamental issue in China economy which affected Hong Kong.  On the other hand, Singapore economy isn't in the bad shape as those of China and Hong Kong and yet STI still way way below 2007 peak.  Something isn't right fundamentally for STI, a potential hidden underlying issue that unfortunately nobody knows what it is, I'm afraid.

Journey To Retirement Part 18.1 -- STI ETF

In the month of April 2024, divested STI ETF at $3.25 after holding for 4 years.  This stock was first bought at March 2020 at $2.3423 during the global market weakness due to Covid-19 pandemic.  As such, this has netted a realized profit of 34.90% together with dividend return of 18.53% for these 4 years.  This gave a total realized profit of 53.43%, annualized to be 11.30% (inclusive of dividend) and 7.77% (exclusive of dividend).

Reason for divesting is not so much super bearish about stock market going forward but rather from a strategic perspective.  STI ETF has been included as the Strategic Section of the Investment Portfolio.  The main objective of the Strategic Section is to acquire stock at either $0 or very low cost and divest when deem appropriate.  Not so much on fundamental perspective.  Since purchased in 2020, for that 4 years, no further action has been taken to accumulate more mainly due to the challenge of trying to accumulate at either $0 or very low cost.  Hence, going forward, makes not much strategic sense to continue hold on to it.

Just some food of thoughts for STI to share about.  US market has already trading way above 2007 peak.  Japan market has also finally move above the 4 decades ago peak 4 and not to mention some other global markets also performing the same.  China and Hong Kong markets were underperformance among global markets mainly due to the fundamental issue in China economy which affected Hong Kong.  On the other hand, Singapore economy isn't in the bad shape as those of China and Hong Kong and yet STI still way way below 2007 peak.  Something isn't right fundamentally for STI, a potential hidden underlying issue that unfortunately nobody knows what it is, I'm afraid.

Journey To Retirement Part 22.1 -- CryptoCurrency

The CryptoCurrency section was added to the Investment Portfolio in 2022 and this is the first time a profit was taken.

The price of one of the token which have started to accumulate since 2022 (first accumulated was 21st Feb 2022) has appreciated from then less than USD $0.50 to as of now USD $2.49.  In fact, the price has dipped to an all time low in 2023 of USD $0.04655 to an all time high of USD $2.98 in January 2024.  It is pretty obvious, some profit must be taken given the volatility of cryptocurrency.  As such, 16.37% of that token has been divested in February 2024 and that net in a profit of 2.38% of the capital of the Income section of the Investment Portfolio.  Since there isn't any capital injected into the CryptoCurrency section, the capital injected for the Income section is used as a reference for the performance.

This divestment resulted in the Total Realized of the Investment increased from +17.20% to +18.76%.  

One thing good about investing in cryptocurrency for my case is in this moment I can make some divestment of certain token, the next moment I can re-accumulate that divested quantity and the whole process does not involve any capital injection.

Strategic Investor 2023 Review

FTSE STI ended the year 2023 at 3,240.27 compared to 3,251.32 a year ago, down 11.05 points or 0.34%.  Pretty much a flat performance for the year.  If not for a late upsurge in December, the loss would have been bigger.  Individually, a review of the various stock portfolio in holding as followed.

Investment Portfolio

	2023	2022	Variant
Non-Strategic (Income) Unrealized Gain/Loss	+99.17%	+82.49%	+20.22%
Strategic Unrealized Gain/Loss	+7.94%	+9.75%	-18.56%
Crypto Unrealized Gain/Loss	+16.06%	+2.84%	+465.49%
Portfolio Unrealized Gain/Loss	+20.11%	+15.53%	+29.49%
Realized Gain/Loss	+18.37%	+18.37%	0%
Dividend Return	+71.91%	+70.16%	+2.49%
Cash Holding	+83.37%	+83.37%	0%
Portfolio	+110.39%	+104.05%	+6.09%
STI	3240.27	3251.32	-0.34%

	Annualized (w/o dividend)	Annualized (with dividend)
CapitaMall Trust	+4.12%	+8.22%
MapletreeInd Trust	+8.11%	+10.73%
Kep DC Reit	+7.73%	+11.11%
Frasers Cpt Trust	+4.13%	+8.36%
Lendlease Reit	--	--

Investment Portfolio performance gain 6.09% for the year.  Despite the positive performance of the portfolio with most of the category returning positive, there was a dip in the Strategic Unrealized section registering a decline of 18.56%.  The reason was due to the underperforming of InnoTek and Fu Yu.  Overall, the portfolio performance was boosted and holding up by the Crypto investment registering a gain of 465.49% for the year.  This eventually led to the 6.09% of the Investment Portfolio compared to a dip of 0.34% for FTSE STI.

Stock Incubator

	2023	2022	Variant
Unrealized Gain/Loss	+41.96%	+64.78%	-38.09%
Realized Gain/Loss	+45.26%	+32.29%	+40.17%
Dividend Return	+26.81%	+22.74%	+17.90%
Cash Holding	+70.35%	+65.39%	+7.59%
Portfolio	+114.03%	+119.82%	-4.83%
STI	3240.27	3251.32	-0.34%

	Annualized (w/o dividend)	Annualized (with dividend)
Nordic	+16.55%	+20.20%
Valuetronics	--	--
Creative	-13.58%	--

Stock Incubator portfolio registered a decline of 4.83%.  The negative performance was not actually due to poor performance of the 3 stocks in the portfolio but rather a re-adjustment for Nordic Group (refer here).  Due to the re-adjustment, Nordic Group closing price for 2023 was $0.36 vs $0.4242 in 2022.  On the other hand, Valuetronics was $0.595 vs $0.52 and Creative was $1.43 vs $1.42.

Looking Ahead

Global economy continues to be uncertain for 2024 and this should be the case for stock markets.  For the Investment Portfolio, the wild card should be the Crypto investment.  This is even more unpredictable than stocks in general.  It could record further gain thus pushing up the performance of the portfolio, it could spring a surprise drop either.  The Income section of the Investment Portfolio shall continue to collect dividend and maintaining a steady growth.  For the Strategic section, will be looking out for opportunity to increase holding.  As for the Stock Incubator Portfolio, capital recovery shall be continued for Creative Technology.

Though inflation has shown signs of cooling down, it is still at elevated level with interest rate maintaining at elevated level too.  Many might be looking toward rate cut this year, this is not the main focus point.  The problem still remain at how fast inflation can be bring down.  Prolong period of elevated inflation and interest rate could eventually lead to stagflation.  Stagflation is a thorny crisis.  There isn't any quick fix for it.  To make matter worse, whatever policies dish out to counter that are nothing but trial and error type.  Stagflation can last for decades !!!

 

Strategic Investor 2022 Review

FTSE STI ended the year 2022 at 3,251.32 compared to 3,123.68 a year ago, up 127.64 points or 4.09%.  One of the selective few market globally managed to edge out a gain for the year while stock market like US ended down double digit percentage.  Individually, a review of the various stock portfolio in holding as followed.

Investment Portfolio

	2022	2021	Variant
Non-Strategic (Income) Unrealized Gain/Loss	+82.49%	+33.40%	+146.98%
Strategic Unrealized Gain/Loss	+9.75%	+2.88%	+238.54%
Crypto Unrealized Gain/Loss	+2.84%	--	--
Portfolio Unrealized Gain/Loss	+15.53%	+16.67%	-6.83%
Realized Gain/Loss	+18.37%	+20.05%	-8.38%
Dividend Return	+70.16%	+68.51%	+2.41%
Cash Holding	+83.37%	+54.05%	+54.25%
Portfolio	+104.05%	+105.23%	-0.69%
STI	3251.32	3123.68	+4.09%

	Annualized (w/o dividend)	Annualized (with dividend)
Genting SP	+2.47%  (divested)	+4.03%  (divested)
CapitaMall Trust	+4.37%	+8.57%
SIA-SATS	-2.24%  (divested)	+0.14% (divested)
Kep Corp	-3.36% (divested)	+0.08% (divested)
MapletreeInd Trust	+7.58%	+10.35%
Kep DC Reit	+7.42%	+10.96%
Frasers Cpt Trust	+3.55%	+8.01%
Lendlease Reit	--	--

Investment Portfolio performance dipped marginally 0.69% for the year.  There were couple of divestment namely SIA-SATS, Genting SP and Kep Corp as part of the continuation of the portfolio restructuring which started late 2021.  With these divestment, the restructuring has finally completed and the newly portfolio is the 3rd portfolio that was being built up since started investing 3 decades ago.  There were some rearrangement of stocks between Non-Strategic (renamed to Income) section and Strategic.  STI ETF was moved to Strategic and Lendlease Reit becomes part of the Income section.  As Lendlease Reit at the moment still holding at $0 cost, there will be no statistic on its Annualized performance (with and without dividend).  In addition, a new section Crypto was added to the Investment Portfolio.  As the name suggested, this houses all the Cryptocurrency investment.  Since this involves $0 capital, the performance is measured its market value with respect the the cost of the Income section.

Due to the divestment, Cash holding was increased by 54.25%.  Unfortunately, the realized gain portion saw a dipped of 8.38%.  This is mainly due to of the 3 divestment stock (Genting, SIA-SATS and Kep Corp), 2 of them (SIA-SATS and Kep Corp) registered realized capital loss.  However, with the inclusion of dividend return all these years for the 2 stocks, the net divestment still manage to register a positive return

The positive aspect of the portfolio is that the total portfolio performance still able to maintain above 100%.

Stock Incubator

	2022	2021	Variant
Unrealized Gain/Loss	+64.78%	+55.80%	+16.09%
Realized Gain/Loss	+32.29%	+32.29%	+0.00%
Dividend Return	+22.74%	+18.99%	+19.75%
Cash Holding	+65.39%	+62.67%	+4.34%
Portfolio	+119.82%	+107.09%	+11.89%
STI	3251.32	3123.68	+4.09%

	Annualized (w/o dividend)	Annualized (with dividend)
Nordic	+21.30%	+24.90%
Valuetronics	--	--
Creative	-17.36%	--

Stock Incubator portfolio registered an increase of 11.89%.  There wasn't any change in composition of the stocks in this portfolio or any restructuring (not ruling out possible restructuring in the future too).  The Cash holding registered an increase of 4.34% and this was mainly due to the cost recovery process for Creative Technology stock.  

Of the 3 stocks in this portfolio, only Nordic Group managed to close higher compared a year ago, while Valuetronics closed at $0.52 vs $0.545 in 2021, the unrealized loss is insignificant.  The worst performance was Creative Technology as it closed at $1.42 vs $2.39 in 2021, a drop of 40.59%.  The huge drop luckily didn't create a big impact on the overall portfolio performance as the unrealized gain from Nordic Group is more than enough to offset it.  Creative Technology cost was $$3.4562/share in 2021 and the recovery managed to reduce it to $3.0031/share in 2022.

Overall, the Stock Incubator portfolio continued to maintain above 100% and almost triple outperformance STI index, that the bright spot of it.

Looking Ahead

The restructuring of the Investment Portfolio has completed and going forward will be concentrating in building up the quantity in the Strategic section.   As for the Stock Incubator Portfolio, capital recovery shall continue with Creative Technology and it is also about time to resume accumulating Valuetronics, which has paused for last year.

Most were expecting a recessionary year for global economy this year.  Unfortunately, recession is not that scary and worried as past experiences had shown that within 2 years economy recovered from it.  Stagflation should be the one to be mostly concerned and worried.  In stagflation, central bankers can't lower interest rate to spur economy grow as inflation is at elevated level and the moment interest rate is cut, inflation will jump.  Central bankers can't continue to hike up in attempt to bring down inflation to acceptable level as the already low level of economy growth will sink into recession.  Unlike recession whereby within 2 years can be exited, stagflation can last for decades !!!

Journey To Retirement Part 7.3 -- KepCorp

Finally total divest of KepCorp at an average price of S$6.2273/share.  

After invested in 2010 and with a holding price of S$7.4156/share, the divestment translated to a capital loss of 16.53% but a dividend return of +54.93%.  This gave a net profit of 38.54%.  For the period of 12 years, the divestment registered an annualized loss of 1.49% if excluding dividend but a +2.75% if inclusive of dividend return.

The reason for divestment of KepCorp like that of SingPost, SIA-SATS and Genting is part of the Investment Portfolio Restructuring which was started in December 2021.  This divestment also marked the completion of the restructuring.

Unlike SingPost, SIA and Genting which has a rather uncertain and questionable fundamental going forward, KepCorp's fundamental is relatively more positive than the other 3.  This is due to the Keppel Corporation Vision 2030, which the management put up in 2020 to transform KepCorp business going forward.  So far, the restructuring and transformation is on the right track.  Thus, why still divestment instead of continue to hold ?  While the fundamental is clearer and more define, it still does not fall into the criteria which my 3rd Investment Portfolio going to build on.  As such, like Genting, am shifting it to the "trading" portfolio.

Journey To Retirement Part 1.5 -- Genting SP

 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.

Journey To Retirement Part 6.6 -- SIA-SATS

As according to plan in the Investment Portfolio Restructuring,  SIA-SATS has completed divested, the second after SingPost.  The divested price was at S$4.4059/share for the combine entity.  With a holding price of S$5.8764/share, the divestment netted a capital loss of -25.50%, dividend return of +27.29%, giving a net return of +1.80%.  This translates to an annualized return of -2.24% without inclusive of dividend return and +0.14% with inclusive of dividend return.

Given the large capital loss and just a barely positive return after inclusive of dividend, why divest away ?  Moreover, there is believe the worse should be over for aviation section due to the pandemic, both SIA and SATS should be seeing price appreciation going forward.  Well, whether the worse for pandemic is over or not, just too early to tell.  Even if it is, the recovery of aviation sector will still be a long haul to the pre pandemic level.  There are also several other factors that SIA could face in its road to recovery, something that is not a straight path for sure.

Firstly, SIA today is not the SIA before the pandemic.  It has turned from a net cash airline to one in net debt.  Secondly, the challenge of cruel oil price which in the past affected its profit margin will not be going away.  Either it faces with rising cruel oil price or hedges at the wrong value.  Thirdly, upgrading of old airplanes.  SIA is renowned in keeping its fleet of airliners in the tip top conditions by not operating airliners beyond certain lifespan.  According to statistic (refer here).  The average age of its airliner as of FY20/21 was 61 months, the highest average age was 92 months for FY16/17 with most of the time on average it will phase out and purchase of new airliners to maintain an average age of 80 months.  Now referring to 2 set of statistic, breakdown of fleet as of Dec 2021 (refer here)  and airliner average age breakdown (refer here).  The breakdown of airliner average age might not be the latest but if comparing the 2 set of statistic, it can find that it has 3 group of airliners (Airbus 380, Boeing 747 and Boeing 777) all having age of more than 10 years, way above the average age of 61 months or even the highest of 92 months.  This meaning these group might be phasing out soon and either the delivery of new airliners to replace them is already in process or it needs to do it next.  Purchasing fleet of airliners is not a cheap investment.  In the past when SIA was in net cash position, it shouldn't be a big problem but now situation has changed, it is in net debt position.  Should the recovery is not fast enough, the net debt position will continue or might even worsen due to the need of replacing old airliners.  The last concern is the dividend return.  SIA didn't give out dividend for last year, a first since I invested in 2009.  The past of good dividend might not be returning soon.  Whether will it resume dividend distribution for this year is still very much questionable given it is in net debt position now and recovery is on the way.

Recovery of aviation sector after post pandemic and how individual airline could bounce back to the good old days afraid is a different and separate thing.  For me, it is possible to continue to hold on to the investment and wait for everything turn positive, namely capital gain but the question is always how long will that take ?  Given the uncertainty and now divesting aways still able to net a overall positive return, just bite the bullet and do it.  After restructuring, I would be able to have more time to focus on the "Strategic" and get the capital gain which definitely is more worthy than plain waiting for the price of SIA-SATS to appreciate to net in the capital gain.

First invested in 2009 and that is like holding for almost 13 years to eventually divesting away.  A period of 13 years duration, apart from just counting the loss and gain of capital, there are definitely more things that have been learned throughout the investment journey.  It is these lessons and experiences that matter most to me than the financial aspect.

Journey To Retirement Part 22 -- CryptoCurrency

After blogging 4 parts on Blockchain Investment (Part I, II, III, IV) it's unbelievable that I'll have no investment interest in it.  So, now am including this into the ongoing restructured and rebuild Investment Portfolio (refer here).  In fact, June 2021 was the starting point in which I got into cryptocurrency.

Cryptocurrency investment shall be group under the "Blockchain" section of the Investment Portfolio.  Though the name said cryptocurrency, it is in fact a basket of crypto coins and tokens.  There are reasons which I will not put in the exact name of these coins and tokens and instead group all as a single entity.  As of this point of writing, the total number of coins and tokens inside this entity stands at 18.  The main reasons for not revealing the name of these 18 coins and tokens are :-

1. Crypto coins and tokens investment is relatively higher risk than stocks investing.  In stock, there is an underlying company or companies (ETF is a basket of companies) associate with it.  The risks could be examined from the company's financial aspect (P&L statement, Cashflow statement, financial ratios, etc) and business aspect.  Though these are not foolproof ways to gauge the risks, it is afterall still a line of defence for investors.  In cryptocurrency, the underlying backing it is the blockchain project.  There isn't any financial aspect one can examine it like stock.  The only way to determine whether it is worth investing is what and how the blockchain project can achieve that eventually translate to financial gain for an investor.  Evaluating the prospect of the blockchain project afraid is subjective and to avoid others just blindly follow without fully understand the risk,  not revealing the coins or tokens is the best way out.

2. The barrier to enter and exit cryptocurrency is almost as good as non existence meaning tomorrow I could just add some more coins or tokens, sell some coins or tokens or even swap one coin or token to another when I have valid reason to do so.  Documenting the name of these coins and tokens will require very frequent updating, not at all constructive and productive from all aspects.

In investing means long time frame for me.  I have that patience to hold stocks for more than a decade so why should it different in cryptocurrency ?  There is also another reason why I'm not afraid to hold it long term -- capital.  However, this is unlike stocks whereby one could get dividend as part of the investment return, cryptocurrency investment is pure capital gain type.  Thus,  I'll classify cryptocurrency as "Strategic Investment'.

In cryptocurrency, I could divest at any time if deem fit.  I could swap coin A for coin B instantly if after evaluating the latter having a better prospect in its blockchain project.  Today I could divest away the whole cryptocurrency entity, tomorrow I could start a new one.  I could hold for even decades if no valid reasons to part way with it.   This is what's meant by "Strategic Investment".

The crypto coins and tokens I have so far did not need to put a single cent of capital into it.  These are acquired by mining, reward and staking.  This will be so even going forward.  As such, the cost of investment is always $0.  In mining, one needs the equipments but the cost of the equipments has been taken care of from day to day separately so it makes no sense to include that as cost of investment.

With $0 cost of investment, how to evaluate the performance in the Investment Portfolio ?  At any price, the return is always infinity (NaN) since denominator (cost of investment) is 0.  As such, the absolute amount at market price (for unrealized) or realized gain will be recorded as a relative to the cost of investment for the "Income" section in the Investment Portfolio.  This will also provide me a comparative study between the performance of cryptocurrency and stocks (capital gain + dividend return) for a specific time duration. 

Strategic Investor 2021 Review

FTSE STI ended the year 2021 at 3,123.68 compared with 2,843.81 a year ago, representing a gain of 279.87 points or +9.84%.  Most would like the performance was due to the recovery from the Covid-19 pandemic which started in January 2020.  While the pandemic is still ongoing with the latest being the mutated Omicron variant, it is still too early to conclude the pandemic is over or stock market correction is over.  Just a food of thought, if vaccine is able to get the world out of pandemic, those nations who have been mass vaccinating the population out of the pandemic are still requiring further booster shot against newly mutated variant why ?

The following summarized the Investment Portfolio performance for 2021 vs 2020

	2021	2020	Variant
Non-Strategic Unrealized Gain/Loss	+33.40%	+14.08%	+137.22%
Strategic Unrealized Gain/Loss	+2.88%	1.26%	+128.57%
Portfolio Unrealized Gain/Loss	+16.67%	+11.21%	+48.71%
Realized Gain/Loss	+20.05%	+29.08%	-31.05%
Dividend Return	+68.51%	+66.31%	+3.32%
Cash Holding	+54.05%	+26.91%	+100.85%
Portfolio	+105.23%	+106.60%	-1.29%
STI	3123.68	2843.81	+9.84%

	Annualized (w/o dividend)	Annualized (with dividend)
Genting SP	+2.52%	+4.14%
CapitaMall Trust	+4.74%	+9.03%
SIA-SATS	-2.52%	+0.08%
SingPost	-3.39%  (divested)	+1.34%  (divested)
Kep Corp	-3.36%	+0.08%
MapletreeInd Trust	+9.73%	+12.44%
Kep DC Reit	+13.83%	+16.52%
Frasers Cpt Trust	+6.29%	+10.39%
SIA MCBz300608	+1.27%  (divested)	+6.07%  (divested)
STI ETF	+28.89%	+33.93%

Investment Portfolio performance dipped 1.29% compared to STI gain of +9.84%.  This was mainly due to the Investment Portfolio doesn't have local bank stocks which contributed to most of STI gain for the year.  Next, was due to dividend contribution which only contributed a marginally increased of 3.32%.  In the past, First Reit contributed a bulk of the dividend return but that was divested in Dec 2020.

There was a dip in the realized gain from +29.08% to +20.05%.  This was due to the ongoing Investment Portfolio restructuring and rebuilding (refer here) in which both SIA MCBz300608 and SingPost were divested.  While the former netted a positive return (refer here), the later registered a capital loss of 36.17% (refer here), the main factor for the overall dip.

After the divestment, Cash holding increased from +26.91% to +54.05%.  Strategic section unrealized gain moved up from +1.26% to +2.88% as 2 more stocks (Fu Yu and InnoTek) were added.

Overall, total portfolio performance still able to maintain above 100%.

The following summarized the performance of the Stock Incubator portfolio for 2021 vs 2020.

	2021	2020	Variant
Unrealized Gain/Loss	+55.80%	+28.74%	+94.15%
Realized Gain/Loss	+32.29%	+32.29%	+0.00%
Dividend Return	+18.99%	+16.05%	+18.32%
Cash Holding	+62.67%	+61.98%	+1.11%
Portfolio	+107.09%	+77.09%	+38.92%
STI	3123.68	2843.81	+9.84%

The Stock Incubator portfolio basically blew the STI away with a +38.92% performance even outperforming S&P 500 which was up 27% for 2021.

The solid performance was mainly due to the performance of Nordic Group.  It closed S$0.23/share in 2020 but S$0.41/share in 2021, a jump of 78.26%.  However, for my holding the price was locked at S$0.3934/share due to a strategic locked in price at S$0.355/share for 31.25% of the holdings.  Nevertheless, this still register a jump of 71.04% in unrealized gain.  While both Valuetronics and Creative closed lower than in 2020, the jump in Nordic Group was more than enough to offset those two and gave an overall increase of 38.92%.

Dividend return also recorded a gain of 18.32%.  Cash holding increased 1.11% due to the continue recovery of the capital being injected into Creative as the holding price reduced from S$3.5718/share in 2020 to S$3.4562/share in 2021.

Total portfolio rebounded back to above 100% for 2021

Looking Ahead

Investment Portfolio will continue to restructure and rebuild to form the 3rd Investment Portfolio since 1993.  If everything work out as planned, the whole restructuring and rebuild should be able to complete within 1Q 2022 and hopefully before STI correction.  

While most people in particular analysts will be more optimistic about STI in 2022 with reason being the Covid-19 pandemic should be ending in 2022, from the STI analysis I did on the STI Analysis -- the next peak and trough series coupled with my "6.5th sense", a final correction is not a big surprise and something expecting for me.

Journey To Retirement Part 4.3 -- SingPost

As accord to Investment Portfolio Restructuring,  SingPost was divested at S$0.65/share.  With a holding price of S$1.0093/share, this gave a realized capital loss of -36.17%.  However, the dividend collected along the years was +55.01%, this managed to offset the capital loss and gave a nett gain of +18.84%.  SingPost was invested in 2008 and the divestment gave an annualized return of -3.30% and +1.3.4% without and with dividend respectively.

The reason for divestment is pure simple.  The good days were over when it expanded too aggressively and now in its "recovery" and "reform" phase to put all those wrongs right.  How long will that that, nobody know and even if it manages to fully reform, will it regain its glory days still an uncertain.  Put it bluntly, future is uncertain and unknown with risks being difficult to be calculated.

The divestment outcome doesn't look bright as it suffered a capital loss of -36.17%.  The brighter side was the dividend collected for the past 13 years managed to offset that loss and recorded a nett gain.  This again proves the important of dividend, it might not give the investment the best return but it provides a cushion for the downside.

So, is investing into SingPost a bad choice ?  Well if purely looking at the investment outcome believe many will say indeed it is.  However, there is more story to it.  Apart from investing into SingPost in 2008, this stock is also one of my main trading stock for like 3 to 4 years.  During these periods, SingPost was like an "ATM" to me, almost everyday can give me some very good trading profit.  In fact, during these periods the profit that I have gotten from SingPost was used to fund the investment of stocks like CapitaMall Trust, SIA, Kep Corp, SembMar, MapletreeInd Trust and CapMallAsia bond.  If putting all these in, is SingPost still a bad stock for me ?

The divestment resulted in a capital loss is a battle loss but the nett gain recorded plus all those trading profits is a war that was won.

Investment Portfolio Restructuring

After thorough thought, decided to bring forward the restructuring of the Investment Portfolio.  Original intention was when the stock market experiences bull run shall be a good times to divest those unwanted holdings.  While unsure is the market going on a bull run or the worst yet to come in 2022, weighing out the benefits and risks, pros and cons, restructuring and rebuilding the portfolio now would be a better move.  Moreover, it is also like a psychological clock that the restructuring and rebuilding is due.  The 1st portfolio was started in 1993.  The restructuring and rebuilding to the 2nd portfolio was in 2006, 13 years later.  Now it is the 15th year into the 2nd portfolio, look like time is ripe to make changes again.

There is chance that should I divest now those unwanted holdings, might miss some capital gain (or prevent some capital loss) if bull run is the next.  On the contrary, there is also chance that should I divest now those unwanted holdings, might register some capital gain (or prevent further capital loss) if the worst is yet to come in 2022.  In actual fact, after going through what stocks that will be divested away, majority of those are in capital loss but nett gain due to dividend return.  As a whole, if taking action now, will not suffer any nett investment loss.

The restructuring and rebuilding of the Investment Portfolio that is happening now shall be the 3rd time since started investing back in 1993.  Unlike the first two portfolios, this one is with a specific objective in mind which will be building around the principles of 孙子兵法 (Sun Tze's Art of War) that have been experimenting since 2015.

In present portfolio, it is divided into Non-Strategic and Strategic sections.  The non-strategic section comprises of stocks ranging from S-Reits (income stocks) to blue chips (both growth and growth-cum-income stocks).  The strategic section which was actually formed in 2015, divested in 2019 and restarted again in 2020 mainly focus on acquiring stocks via strategic mean so that they are either at $0 or a very low cost.

For the ongoing restructured portfolio, it will be grouped into Income and Strategic sections.  The Income section will solely comprise of S-Reits only.  For the Strategic section, it will comprise of stocks that will be acquired either at $0 or very low cost and stocks use as tool to generate cashflow.  Dividend return for the Strategic section is not a priority but shall be a bonus if have.  Furthermore, divestment of the Strategic stocks will not be based on fundamental reasons but rather "timing" of the market.  That is like the full divestment in 2019 when foreseeing stock market will be crashing.  In 孙子兵法 perspective, the Income section is the 正兵 which takes on defensive role while the Strategic section is the 奇兵 that will win the battle and the war, getting the most of the capital gain.

With that principle in mind, the restructured or rebuilt Investment Portfolio shall be as followed :-

Income Section

1. CapitaLand Integrated Commercial Trust (CICT), previously as CapitaMall Trust

2. Mapletree Industrial Trust

3. Keppel DC Reit

4. Frasers Centrepoint Trust

5. Lendlease Global Commercial REIT      

All the above except for Lendlease was acquired before the stock market crashed in 2020 due to Covid-19 pandemic with both CICT and MIT already holding for more than a decade.  Lendlease was acquired in 2020 in the Strategic section at $0 cost (the only one among the 5 to be at $0 cost) and relocate to the Income section for this restructuring.  For these stocks, the primary objective is to collect dividend without doubts.  As for capital gain, all of these (except Lendlease) are enjoying at least 30% capital gain at the moment, so they are having a little cushion as of now.  Going forward, shall not inject anymore capital into any of these stocks even if there is preferential offering.  Any increasing in holding will be done via strategic mean of acquiring them at $0 cost.  In additional, it will also open to add in more S-Reits going forward but on the condition of only acquiring at $0 cost.

Strategic Section

1. Genting Singapore Limited

2. SingPost 

3. Keppel Corporation

4. SIA-SATS

5. STI ETF

6. Fu Yu

7. InnoTek

This section will be a bit complicated going forward.  There will be stocks that going to be divested away during the restructuring even if results in capital loss (overall still nett gain due to dividend return over the years).  There will also be stocks that will be kept as a tool to generate cashflow.  Genting, SingPost, Kep Corp and SIA-SATS shall be the stocks in those category.  As for STI ETF, Fu Yu and InnoTek, these 3 were acquired in 2020 during the market crash and will continue to hold and at the same time increase the holding via strategic mean at $0 cost or very low cost.  In fact, among the 3, only STI ETF was injected with capital.  While might open to add in more stocks in this section but the priority is to build up the quantity first going forward.

As a reference for building up investment portfolio, something worth mentioning.  

The 1st portfolio was started in 1993 with SingTel IPO as the first stock in my investment journey.  Pan United IPO was the next in the portfolio in 1994.  1994 was also the peak of the stock market before it started to crash.  This was a novice portfolio and after the stock market crashed in 1994, the 2 stocks became passive investing, just collect dividend and not doing anything.  

Then in 2006 decided to be more active in stock investment and built up the 2nd portfolio.  Genting was the first stock added to the 2nd portfolio with Pan United and SingTel divested in 2007.  Again, second year into the building up of the portfolio, stock market reached peak in 2007 and crash due to the US sub-prime crisis.  

Then in 2015, decided to do a major revamp of the 2nd portfolio by incorporating the Strategic section (experimenting with the principles from 孙子兵法) and starting to add in stocks at either at $0 or very low cost.  Again, 2nd year into the major action on the portfolio, stock market crash and hit the rock bottom in 2016.  

Next in 2019, decided to divest away all the holding in Strategic section, another major action on the portfolio, stock market crashed in 2020 due to the Covid-19 pandemic.

Now, in 2021, restructuring and rebuilding the 3rd portfolio, another major action to the investment portfolio, given the precedence and record, any chance stock market will not crash in 2022 ?

Journey To Retirement Part 6.5 -- SIA

With reference to Journey To Retirement Part 6.2 -- SIA dated 2nd Aug 2020.

Did a full divestment of the MCB -- SIA MCBz300608.  The divestment was the actual SIA MCBz300608 share but the locked-in stock for it.  The divestment price for the locked-in stock was S$1.04/share.  Couple with the first divestment in Aug 2020 at price $0.98/share, the nett divestment price works out to be S$1.01/share.  As a result of this divestment, capital gain was +1.27%.  At the same time, the locked-in share also received dividend and the dividend return so far was +4.8%.

As known, the SIA MCB is a zero coupon bond with an expected conversion price of S$4.84/share upon full maturity.  The move in August 2020 was a strategic one to test out a swap and lock-in to another stock (in particular one with constant dividend) will it provide a better return in the long run.

The divestment now doesn't mean the test has completed as presently am doing a major restructuring of the Investment Portfolio.  Any "unwanted", underperforming, lack of future visibility and of course "experimental" one would be let go.  The SIA MCBz300608 fits into those category without any doubts.

The actual SIA MCBz300608 closed at S$0.988/share on 26th Nov 2021, which is 1.2% below the par value.  Thus, since the strategic move in Aug 2020 till now, that 1 year 3 months of experiment yield a better performance than just pure holding on the underlying.

Journey To Retirement (CPFIS) Part 4.1 / Part 7 -- OCBC / SGX

Vested in OCBC using CPFIS in 2015 and somehow almost forgot about this investment only when last year due to the Covid-19 pandemic that I realized I have this investment when organizing all the investment portfolios.  Since then, made a decision to strategically switched out OCBC with SGX.  

The tactical switch was finally completed after months in selling (OCBC) and buying (SGX).  OCBC was vested in 2015 at $10.40/share.  Along the way there was an addition coupled with collecting scrip as dividend.  As a result of that, the eventual holding price was $9.183/share before the tactical switch.  The tactical switch from OCBC to SGX though saw a 8.25% reduction in the number of share, the vested capital was able to reduce by 9.65%.  As such, the holding price of the SGX after the tactical switch was $9.0434/share.

The following reasons were being considered to make the strategic switch.

1.  Stability of the company

Well don't get me wrong, OCBC is not a shaky coporation that can go under the belly easily in time of crisis.  The stability factor is more on the "too big to fall" type.  No matter how financially strong OCBC is, there will be times especially a big financial crisis like the scale of the 2008 GFC that could impact its cash flow with default loans, mortgages, etc.  That was why during the 2008 GFC banks were doing right issue, share placement, offering perferrential share to investors to beef up their cash holdings.  Banks can fall too like Lehman Brothers went bankrupt, Merrill Lynch being acquired by BofA and so on.  Similarly, Singapore banks will have not exception.  The financial risk factor between SGX and OCBC is drastically different.  For sure during a financial crisis, bank revenue and profit will take a severe hit but that cannot be the same for SGX.  SGX gets its revenue and profit from stock market activity.  Though it will be a bear market in time of financial crisis, that might not have a direct relation to the stock market activities.  As long as there is volatility in the stock market, it will attract investors and traders to come in to provide that required revenue and profit.  A Singapore bank can get into trouble and in turn being absored or acquired by another bank resulting in short-term damage but a fall in SGX (getting into administration), the one and only stock exchange in the country, is a very bad reputation for Singapore as a financial hub.

2.   Scrip dividdend

OCBC used to have that and that was how I managed to increase the holding by 9% throughout the investment periods.  SGX is intenting to start one and seeking approval from shareholders in next month AGM.  By strategically switching to SGX allows me to continue the scrip dividend scheme to increase the holding.  

Journey To Retirement Part 21 -- Fu Yu

Added Fu Yu to the Strategic Section of the Investment Portfolio.  Another non Reits addition after InnoTek.  Same as InnoTek was initially undecided which portfolio to put it in.  So in the end, just follow InnoTek, group it into the Strategic Section of the Investment Portfolio.  Thus, the path of Fu Yu should be similar to InnoTek.

Company Background

Fu Yu was established in 1978 as a partnership fabricating injection moulds and manufacturing plastic injection parts. It is a manufacturer and supplier of high-precision injection moulds and plastic parts in Asia. Currently, it has 12 plants in Singapore, Malaysia and China. The Group's operations make a complete range from design to fabrication to assembly, and include finishing activities such as silk screening, pad printing, ultrasonic welding, heatstaking and spray painting. The markets it serves include the information technology, telecommunications, automotive, medical, electronics and electrical appliance sectors.

Its might look similar to InnoTek or even Valutronics (which is in the Incubator Portfolio) but the actual underlying is not the same.  As such, I am open to invest in it.  Moreover, the event happened in January this year when 3 of the co-founders sold a combine 29.8% stake to a local fund management firm, Pilgrim Partners Asia (about $0.26/share) and retired.  With a new substantial shareholder or even a possible takeover target, can't debate there isn't any potential in the company going forward.

Financial

Fu Yu reported a jump of 33.3% in net profit for FY20 despite a drop of 21% in revenue.  Its gross profit margin also improved to 24.0% from 19.7% in FY19.  Its has a net cash flow of S$106.6M with zero borrowings.  A summary of its financial aspect is as followed :-

1. Cash S$106.64M

2. ROE = 10.071%

3. Current Ratio = 3.793

4. Quick Ratio = 3.484

5. Net Profit Margin = 11.024%

6. Price/Book Value = 1.311

7. P/E Ratio = 13.351

8. Dividend Yield = 5.333%

Not a bad set of financial figure despite the ongoing Covid-19 pandemic.

Investment Objectives

The business prospect going forward is definitely one of the investment objective.  With a new major shareholder in Pilgrim Partners Asia, couldn't be just invest for collecting dividend only.  Pilgrim Partners Asia definitely seeing something or has an idea to inject to steer the company to a better growth path.  The other objective is of course potential of privatization.  Pilgrim Partners Asia has a 29.8% stake, just short of 0.2% to trigger mandatory takeover.  While it might not be happening in the short-term but there is a possibility with it going forward.

Like InnoTek, this investment will be aiming at accumulating at $0 cost (best scenario) or as low vested capital possible.  With that, the holding price would be well below that of Pilgrim Partners Asia has paid for and providing a very good buffer.

Journey To Retirement Part 20 -- InnoTek

Added InnoTek to the Strategic Section of the Investment Portfolio.  This is the first stock that is not a Reits in the Strategic Section since 2015.  At first was thinking should it be put into the Incubator Portfolio but since its business is quite similar to Valutronics, it doesn't make sense to put it there.  Thus, placing it in the Investment Portfolio.  Next, given that am intending the accumulate at $0 or minimum cost, thereby putting it in the Strategic Section is more appropriate than the non-Strategic Section.

Company Background

The Company was incorporated in Singapore on 28 November 1995 under the name of Magnecomp International Pte Ltd and adopted the name Magnecomp International Limited when it was converted to a public limited company on 6 December 1997. The Company was listed on the Mainboard of the SGX on 7 January1998. The principal activity of the Company is that of investment holding. When it was listed in 1998, the Group comprised two operating divisions : (1) Data Storage Component Division, which specialized in Suspension Assemblies and related components for the hard disk drive industry and ; (2) Office Automation and Consumer Electronics Components Division , which specializes in key precision stamped components, sub-assemblies and commercial tooling for both the office automation and consumer electronics industries. In 2005, the company merged its Data Storage Division with Magnecomp Precision Technologies Public Company Limited (“MPT”, formerly known as K.R. Precision Public Company Limited) , a company listed on The Stock Exchange of Thailand, specialized in the manufacture and sale of suspension assemblies. The Office Automation and Consumer Electronics Components Division comprises Mansfield Manufacturing Company Limited (“MSF”) and its group of Companies. In 2007, the Company divested its interests in MPT and following the disposal of MPT, changed its name to InnoTek Limited with effect from 22 November 2007.

As of now its business model, InnoTek is a precision metal components manufacturer that serves the office automation, automotive, and TV and display industries.  In fact is it the sole source for Sony's TV components.   

Financial

Due to the Covid-19 pandemic, its FY20 revenue was down 1.9% to S$183.2M while net profit dropped 16.7% to S$13.9M.  The weakness mostly was in 1H20 and in 2H20, it managed to do a turnaround registering as it net profit was up 13.5% to S$10.1M.  

Its 1Q21 managed to register a net profit of S$2.47M compared to a loss of S$1.05M in 1Q20.  

According to SGX website, its latest financial aspect managed to register the followings :-

1. Cash S$91.8M vs Net Debt S$68.43M

2. ROE = 8.185%

3. Current Ratio = 2.722

4. Quick Ratio = 2.374

5. Net Profit Margin = 7.57%

6. Price/Book Value = 1.119

7. P/E Ratio = 14.476

8. Dividend Yield = 2.273%

Definitely not a very strong set of data given which company is not affected by the pandemic.  However, it wasn't a terribly weak set of data too.  

Investment Objectives

There are couple of objectives am looking forward to.  One being its business prospect as InnoTek is targeting to grow its profitability by 50% in the next 3 to 5 years.  It might face some problem in the short-term due to current global semiconductor shortage as it is forecasts the shortage to abate from 4Q21.  InnoTek in certain aspect is partially insulated from the shortage as it has previously stocked up on its raw materials since Sept 2020.  Most SGX-listed tech stocks are trading at an average P/E of 18x and P/B value of 4.1x while InnoTek is only at 14.476x and 1.119x respectively.  There is no doubts quite an upside to come along.

The other objective is targeting a potential takeover.  Its 2 major shareholders collectively is holding around 48% stake.  Thus, either privatization or takeover should not meet with difficulty.  For SGX-listed tech companies that recently received takeover offers, the average valuations of the various takeover offers stood at 14.7x P/E, 1.7x P/B and 6.8x EV/EBITDA.  InnoTek on the other hand is currently priced at 14.476x P/E (or 10.9x Forward P/E), 1.119x P/B and 4.6x EV/EBITDA.  Can't deny should there be a possible takeover or privatization, shareholders shouldn't be at a losing end based on current market share price.

To further enhance my investment gain, I am aiming at accumulating at $0 cost (best scenario) or as low vested capital as possible.  Either one of the objective, doubt I will lose out.